Photo: Special

JAKARTA (TheInsiderStories) – Indonesia Supreme Court ordered the Minister of Transportation to revoke the Regulation Number 108 of Year 2017 concerning the Implementation of Transportation of People with Public Motorized Vehicles Not in Routes.

Case began when the ministry issued the regulation on June, 2017. During the process of making of the rules, online taxi drivers did a demonstration rejecting the planned.

Followed the demonstration, the regulation was sued by representative online drivers Daniel Lukas Rorong, Herry Wahyu Nugroho, and Rahmatullah Riyadi.

“The 14 articles is a re-loading of norms that have been canceled by the Supreme Court Decision Number 37/P.HUM/2017 dated June 20, 2017, and therefore it is not valid and not generally accepted,” said the Supreme Court clerks Supandi, Is Sudaryono and Irfan Fachruddin in their website on Wednesday (12/09).

Furthermore, the Supreme Court stated that the above Minister of Transportation contradicts Article 3, Article 4, Article 5 and Article 7 of Law Number 20 of 2008 concerning Micro, Small and Medium Enterprises cause it does not grow and develop business in order to build a national economy based on equitable economic democracy and the principles of empowering micro, small and medium enterprises.

The existence of online taxis, is considered a judge has also changed business competition in the field of public transportation to be healthier. Before the existence of online taxis, public transportation businesses were in the monopoly of certain groups.

“By utilizing excellence on the technology side to partner with micro and small entrepreneurs with the concept of sharing economy that is mutually beneficial by promoting the principle of family as mandated by Article 33 paragraph (1) of the 1945 Constitution of the Republic of Indonesia,” written in the decision.

The preparation of the Minister of Transportation on online taxis is also seen by the judge as not involving all groups involved in the online transportation business.

In addition, the judge considered that the ministry regulation on online taxis was contrary to the law with a higher legal standing. The judge argued that restrictions on online transportation had limited the growth of micro businesses.

The limitation of online transportation tariffs compiled by regional heads also contradicts the Traffic Law. According to the judge, public transportation rates should be determined based on the agreement of users and service providers.

Commenting on the decision, the minister Budi Karya said would again discuss with other stakeholders to reformulate the rules on online taxis.

Email: linda.silaen@theinsiderstories.com

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The Insider Stories Founder Linda Silaen has a solid, proven history, established over more than a decade as a journalist with a leading internasional news organization, of being the first with the biggest economic news stories in Indonesia. Specializing in corporate news, Linda is also a veteran of some of the biggest macroeconomic and general news stories as Indonesia rapidly transforms into a major market economy. One of the founders of the original blog from which this company developed, Linda’s knowledge of investors’ information communications and data us developed from unrivaled networking skills that make her a well-known name among CEOs, bankers, government officials and private equity investors both in Indonesia and other countries.

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