JAKARTA (TheInsiderStories) - In a surprise move, Indonesia’s Transportation Ministry on late Thursday(Dec. 17) bars the operation of ride-sharing bikes and taxis on grounds that these mobile applications do not meet conditions to be considered as public transportation.
Director General for Land Transportation at the Transportation Ministry Djoko Sasono said the decision was based on the Ministry’s circular letter No. UM.3012/1/21/Phb/2015 dated Nov. 9, 2015, but just released on Thursday.
The notice letter signed by the Minister of Transport Ignatius Jonan on Nov. 9, 2015. Djoko said that the letter was also addressed to the Police Traffic Corps as well as the police chief and governor throughout Indonesia.
He explained more, that the operation of Uber, Go-Jek, Go-Box, GrabBike, GrabCar, BlueJek and Lady-Jek does not comply with the provisions of the law and Government Regulation No. 74 Year 2014 on road transportation.
“The ruling on public transportation requires vehicles with a minimum of three-tires, has legal entity and obtain permit to perform public transportation,” he said.
Djoko admitted that the ministry does oppose start-up business. However, this business becomes a problem if these personal transportation means are used for illegal public transportation and do not meet applicable regulations.
“Whatever their names, the operations of (ride sharing) such as Go-Jek, Go-Box, Grab Bike, Grab Car, Blue Jek, Lady-Jek are prohibited,” he said.
The surprise decision of the Transportation Ministry came as more and moremotorcycle and three-wheeler taxi apps were launched. Recently, LadyJek, a motorcycle taxi mobile application was launched to compete with popular motorcycle taxis Go-Jek and GrabBike. The Jakarta’s Organzation of Land Transportation Owners (Organda) and BajajApp also launched a mobile app that enables Jakartans to order gas-fueled Bajaj three-wheelers online.
Only on Dec. 8, the Jakarta province has given a green light to US-based Uber to operate in Jakarta. The taxi-hailing app has secured approval from Investment Coordinating Board (BKPM) and now has legitimate operations in the country. Now, it also holds the foreign direct investment firm status.
Governor of Jakarta Province Basuki Tjahaja Purnama, known as Ahok, said the main reason for Uber to operate in Jakarta is due to strong demand from the public for a transportation mode which is safe, trusted and affordable.
Ride-sharing players such as Go-Jek, GrabBike are yet to issue official response as yet.