Photo: Privacy

JAKARTA (TheInsiderStories) – The Indonesian Government issued new norm on online transportation, Ministry of Transportation’s decree number 108/2017 that revises number 26/2017, aims to manage the mushrooming of online services like local ride-sharing Go-Jek, Malaysia’s Grab and U.S’s Uber. The new regulation is effective starting Nov. 1.

The norm classifies non-route public transportation into four categories: taxi-based vehicle, specific purpose vehicle (including carter, rent, company workers, residential, shuttle between), tourism vehicle and region-specific vehicle. It also sets provisions governing vehicle ownership, lower and upper tariff limits, and fleet quota.

The revised norm is designed to avoid the likelihood of the rule being challenged for discriminating online services, the primary reason why the supreme court revoked the previous regulation.

In the article 63 about online transportation, the revised norm stipulates online transportation should follow a set requirements like driving licence mandatory, insurance scheme, as well as registration mandatory to Ministry of Information and Communication for such online based transportation application.

Land transportation application –based company are forbidden to give access service to unregistered public transportation company, give access service to individual, opening recruitment for drivers, set the tariff as well as give tariff promo below ceiling price.

Land transportation application –based company is also mandated to co-operate with registered public transportation company, as well as give digital dashboard access to Directorate General, Head of Agency, Governor in line with their authority.

This Digital dashboard includes company identity, data on public transportation partner, data on vehicle and driver, access monitoring of tariff and vehicle’s spatial movement, consumer complain via email and phone.

Tariff ceiling (upper and lower tariff for specific rent vehice) will be determined in order ensure that drivers receive enough income for car’s maintenance or loan installment. While foor tarif is intended to avoid predatory pricing by giving huge discounts to beat competitors.

The new regulation include sanction scheme, from warning, administration penalty fee, until operation licences banning. The ministry also gave 3 months transition period to make everything in the new regulation in place, including driving license mandatory.

Writing by Yosi Winosa, Email: