Photo: GO-JEK

JAKARTA (TheInsiderStories) – Indonesian Transportation Ministry released a new tariff for online motorbike taxi and will be implemented in 41 cities, said the spokesman last week. Its expected the new regulation will improve the service quality and prevent unfair competition among applicators.

Budi Setiyadi, the ministry spokesman, said the new tariff was made based on ministerial decree Number 348 Year 2019 and Number 12 Year 2019 about Online Taxi as Public Transportation in 41 Cities. The government has implemented new tariff since July 3, 2019.

Is known, two giant online transportation companies operating in Indonesia are GOJEK and Singapore-based Grab Holdings Inc. He explained that the two providers were also prohibited from applying discounts under low cost carriers to prevent unfair business competition.

Based on that, the government also set a deadline for giving discounts to online taxi service users. He stated, the ministry will send a letter to the Business Competition Supervisory Commission if there is unfair business competition.

“The Business Competition Supervisory Commission will continue to play a role in overseeing the two Online Taxi applicators,” he said.

Setiyadi explained, the rule has imposed the lower limit and upper limit of online motorcycle taxi in accordance with ministerial regulation Number 12 Year 2019. It said, first zone tariff is Rp 1,850-Rp 2,400 per kilometer (km) with a minimum service fee or in the first 4 km Rp 7,000-Rp 10,000.

Then, for the second zone tariff is Rp 2,000-Rp 2,500 per km with a minimum service fee in the first 4 km Rp 8,000-Rp 10,000. Andm third zone tariff is 2,100-Rp 2,600 per km with a minimum service fee in the first 4 km Rp 7,000-Rp 10,000.

The implementation will be divided into three zones. The first zone is Banda Aceh, Medan, Batam, Pekanbaru and Palembang. Second zone is in Jakarta, Bogor, Tangerang, Depok and Bekasi. Then, for the third zone is Pontianak, Banjarmasin to Jayapura.

Furthermore, he explained this regulation will apply step by step. The government will continuously to monitor the online taxi ride-hailing.

In addition, Setiyadi hopes that the enactment of Transportation Minister Regulation No. 118 of 2018 on online taxis can run well after it takes effect. Because, in drafting the rules, all parties are involved in order to accommodate all interests.

Written by Willy Matrona, Email: theinsiderstories@gmail.com