Uber Ready to Become a Legal Entity in Indonesia

The service that serves as a bridge between passengers and private car drivers, Uber, has expressed its readiness to comply with government regulations. This readiness is shown by Uber's plan to build a company in Indonesia and also support for the discourse on implementing regulations ride-sharing that the government wants to apply to similar companies.

As is known, Uber is currently facing problems with the government, especially for the DKI Jakarta Province, related to the existence of legal entities and tax payments in Indonesia. The problem ended with Uber reported to the Criminal Investigation Police and continues on arrest of five drivers.

In response to this, the International Launcher and Acting GM Uber Jakarta, Alan Jiang, said that his party is currently in the process of establishing a legal entity in Indonesia. The shape is Foreign Investment Company (PMA) with full ownership by Uber later.

So far, Uber has only had a representative office in Jakarta, which is located in the Pacific Place area, Sudirman Integrated Commercial Area (SCBD). If Uber's plan to form a legal entity is realized, it means one of the DKI Jakarta government's desire for Uber will be fulfilled.

Alan says:

We are currently in the process of submitting an application to create a investment company in Indonesia."

"In whatever country we operate in, Uber always tries to cooperate with the government and is also subject to existing regulations. We have also done this in several countries such as India and the Philippines. We sat down with local governments to reach an agreement ," added Alan.

Furthermore, Alan also expressed his support for the discourse from the government that wants to implement regulations related to the vehicle sharing business model (ride-sharing) for similar companies like Go-Jek and also GrabBike.

The Minister of Communication and Information, Rudiantara, previously stated that there should be regulations that can regulate the use of technology to provide services that provide transportation services such as those carried out by Go-Jek and Uber.

Alan said, "We will support the government's steps (such as regulatory discourse ride-sharing) anywhere as long as it can provide benefits for both our drivers and passengers."

Uber and Go-Jek themselves are currently becoming a hot topic in the community. This is because both of them provide transportation services by utilizing technology, but this leads to licensing problems and tax payments.

Uber opens the opportunity for individual drivers to join through cooperatives

In Indonesia, to provide a transportation fleet, Uber has collaborated with a number of car rental businesses. Uber itself has firmly stated that they do not accept individual drivers to join them. However, this does not mean that individual drivers cannot join Uber at all.

For individual drivers who want to join, they can register through Uber's partner, namely Koperasi Trans Usaha Bersama. Furthermore, the individual driver will be evaluated thoroughly and must fulfill all requested documents such as SKU and other documents.

As for the monetization system, Alan reveals at this time everything do which is 100 percent for the driver. However, after Uber's business is established in Indonesia, it is possible that Uber will apply its usual business model, which is 80 percent for drivers and 20 percent for Uber.