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The picture shows a conventional taxi Blue Bird and ride-hailing taxi operated by Go-Car. Photo by Blue Bird Group

JAKARTA (TheInsiderStories) – Indonesian Ministry of Transportation released a new order about online transportation, stated in Ministry Regulation Number 118 Year 2018 concerning of the Special Rental Services to replace the previous rule. The decree was signed by the Minister of Transportation Budi Karya Sumadi on Dec. 18 and was promulgated the day after.

This rule is a substitute for Regulation Number 118 Year 2017 that will be fully implemented in mid-2019. The adjustment covers minimum service standards, tariff limit, and suspension implementation.

The ministry also regulate online transportation applications cannot exceed tariff assigned by the ministry, range at Rp3,500 (US$0.24) to Rp6,000 per kilometer. Meanwhile, suspension will be classified as light, medium, heavy, and very heavy. Sanction for each category is different, consideration for heavy and criminal for very heavy.

One of the most interesting rules is the imposition of fees and online taxi rates. In this latest regulation, the ministry has the authority to make a scheme for calculating direct and indirect costs.

Ride-hailing companies are prohibited from applying rates and providing promotional rates below the lower limit rate set. The lower limit and upper limit rates applied by applicator companies will be reviewed together with relevant stakeholders.

In addition, the government also requires the companies to be incorporated in Indonesia and publish rates to application users. The regulator will also have access to the company’s digital dashboard application.

This contains the name of the company, data of all transportation companies that work together, data on all vehicles, access to monitoring operational services and access to customer complaints services.

This regulation also requires online transportation provider to adjust the availability of taxis online with regional requirements set by ministers or governors.

Beside, the new rule provide protection for the driver, including a complaints service and driver problem solving. Thus, the transportation provider must set the criteria for imposing suspension witnesses.

The organizers of special rental transportation are also required to provide a notice or warning before applying a suspension. Furthermore, the regulation also states that the driver can clarify if sanctions are imposed by the organizer.

The driver’s partner also has objection rights and the partnership with the Business Competition Commission. Drivers will also have re-registration rights if suspended by transportation companies.

This regulation also provides administrative sanctions to special rental transportation companies when committing violations. The sanctions are in the form of written warnings, suspension of operating permits and revocation of operating permits.

US$1: Rp14,500

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