1. Startups

Taxi Conflict and Online Transportation Booking Service Entering Transition

Uber and Grab remain operational, but unable to add to the fleet at this time

Grab and Uber is stated to have to fulfill several requirements in the transition period set by the Ministry of Transportation. Meanwhile, the two companies are in a state of flux status quo which is still operating as usual, but cannot expand.

Long riot This relationship between taxi companies and online taxi booking services forced the government as the regulator and mediator to undergo a series of meetings to find the best solution.

As is well known and believed, Grab and Uber agreed to remain a technology-based company as a service provider. It was granted. Nevertheless, another requirement that arises is the license to operate the fleet from the two companies. The solution is to partner with a legal entity (cooperative) that will act as the manager.

"It's not the application company, but whether the vehicle is operating legally or not. [...] In fact, it is very efficient, I encourage all public transportation to use information technology," pepper Minister of Transportation Ignasius Jonan (22/3).

In the results of a limited meeting on Wednesday (23/3), the Head of the DKI Jakarta Transportation Agency Andri Yansyah said that the government is currently implementing a transition period to provide opportunities for public transportation service fleets that do not have permits, according to reports. Kompas.

This transitional period obliges Grab and Uber to immediately complete its obligation to take care of the legality of the fleets registered with its services. The formation of a cooperative includes taking care of permits as a company operating public transportation, taking care of vehicle registration, KIR, and others. Public SIM A also seems to be one of the requirements that must be met by drivers.

Operations will continue as usual, but there are restrictions on adding to the fleet.

"During the transition period, we state that the existing public transport is in a state of status quo. This means that those that have been registered are now operational, will continue to operate, but will not expand. [...] If the transition period is not fulfilled, then the applicable laws and regulations will apply. So there is a decisive action." say Director General of Land Transportation of the Ministry of Transportation Sugihardjo.

In our opinion, this solution is not the best, although it is better than blocking. The scheme that is undertaken tends to force innovation from business actors (Grab and Uber) to comply with rigid rules and regulations. Refusing to revise or formulate new regulations, Jonan is adamant that this conflict can be extinguished with existing regulations.

"I don't think there's a regulation that needs to be changed, there's no need to evaluate the law, that's wrong and a false statement," batches Jonan who is reluctant to revise Law No. 22 of 2009 concerning Traffic.

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