Government Sets Transition Period For Application-Based Transportation Providers

Jakarta (Antara Bali) - The government has set a transition period for online application-based transportation providers to meet the requirements for offering commercial public transportation services.

"The transition period will be determined on Thursday," Acting Director General of Land Transportation Sugiharjo stated after a discussion with the relevant ministers at the Ministry for Political, Legal, and Security Affairs here on Wednesday.

The decision was based on the discussion with Coordinating Minister for Political, Legal, and Security Affairs Luhut Panjaitan, Minister of Communications and Information Technology Rudiantara, Head of the Jakarta Transportation Agency Andri Yansah, and Central Executive Board head of Jakarta Organization of Land Transportation Owners Adrianto Djokosoetono.

Sugiharjo noted that app-based transportation providers could not expand their fleet.

"But, application-based transportation providers were allowed to operate," Sugiharjo remarked.

As a result, the Ministry of Communications and Information Technology would not block Uber and Grab's ride-hailing applications.

If the operators of app-based taxis did not follow the rules, they would face decisive action.

"The form of sanctions will be determined after the results of a meeting on Thursday (March 24)," he pointed out.

He affirmed that Grab and Uber had agreed to work closely with public transport operators who possessed the licenses required for offering commercial public transportation services.

Yansah would discuss the issuance of licenses with the One-Stop Integrated Service Agency's head.

Earlier, thousands of drivers had rallied in front of the office of the Ministry of Communication and Informatics in Central Jakarta, demanding that the online transportation service applications should be blocked.

The drivers began congregating in front of the office at 1 p.m. local time, after parking their vehicles, including taxis, three-wheeled cabs known locally as "bajaj," vans, and minibuses at the Monas Square nearby.

The taxi drivers taking to the streets of Jakarta brought certain parts of the capital city to a standstill as they blocked some main roads with their cars.

The drivers staging the rally believe that the private cars offering smartphone application-based taxi services are not considered a business entity, which is subject to tax regulations and obligated to undergo vehicle road-worthiness tests.

President Joko Widodo (Jokowi) has called to resolve the conflict between online app-based and conventional taxi services in a fair manner.

"The president has ordered the evaluation of the issue, so that a fair settlement could be reached," Minister Panjaitan stated in an announcement made at his office on Tuesday.

Panjaitan emphasized that both sides must be dealt with equitably.

"Both conventional and online app-based taxi services should equally enjoy fair treatment," remarked Luhut.

Both sides will have to abide by the requirements, such as permits, and will have to pay taxes. (WDY)