Indonesia finally has online Transport regulation

Ilustrasi (Dok: Uber)

JAKARTA (IndoTelko) - Indonesia finally catching up with the Philippines in adopting the application based transportation service (ridesharing).

Indonesian Government through the Ministry of Transport (MoT) officially issued regulation for application-based transportation services under the Transportation Ministerial Regulation's No. 32 in 2016 on route less public vehicle transportation such as taxi, rental, chartered and tourism transportation.

"This regulation is targeted on four wheeled transportation ridesharing according to the Road Transport law," said a spokesman for the Ministry of Transportation Hemi Pamuharjo in a short message to IndoTelko, Thursday (21/4).

Director General of Land Transportation Pudji Hartanto Iskandar asserted that online taxi service owner must register the vehicle license and the name must be a legal entity or in accordance with Law No. 22 of 2009, Article 139, paragraph 4.

According to the regulation, these app-Based transportation providers are stated as Public Transport Operator with technology and informatics Application based. One of the regulations mentioned that transportation company that have no route such as taxis, are allowed to use the application.

Provision of application can be done alone or in cooperation with any Indonesian established applications companies. The transit payment system may also simultaneously carry out in the application, as long as it follows the provisions in the information and electronic transactions field.

If a public transport companies, such as taxis is cooperating with the company's application, the application company may not act as transport organizers. This means that the application company may not set the tariff, recruiting drivers and determining the driver’s earnings.

Transportation provider application company is also required to provide monitoring access service, data of all public transport companies working together, the data throughout the vehicle and the driver, and the company's address.

While for the applications company that provide services for the motor vehicle transportation are required to attend public transport concession provisions contained in the Articles 21, 22 and 23 Ministerial Regulation No. 32 in 2016. Such provision requires the application company to request legal entities establishment in Indonesia.

The recognized legal entity types in Indonesia consisting of state-owned enterprises, region-owned enterprises and Limited Liability Company or a cooperative. Applications Company is also requested to organize routeless public transport permit.

The requirements consisting of the company must have at least five vehicles on behalf of the company, passed the periodically test, has a car pool and garage and the driver must have a driver's license (SIM).

The regulation would be put into effect within the next 6 months. The Ministerial Regulation number 32 in 2016 have been passed in March 2016, and will came into effect in September 2016.

Meanwhile, related to the action of a number of online bike taxi (ojek) drivers who demand legal protection for their profession, Hemi confirms that the two-wheel transportation mode is not considered as public transportation according to the Act.

"We'll see how it goes (online bike taxis). The Ministry of Transportation provides priority aspects of safety and security, especially for public transport," he concluded.

Ridesharing business began to flourish in Indonesia and had caused controversy which led to massive demonstrations by conventional transport. Currently, players like Uber and Grab are given deadline until early June 2016 to meet all agreed regulations. Meanwhile new players continue to emerge at the four wheels ridesharing mode such as Go-Jek who is preparing a Go-Car and Uber expansion to two-wheeler with UberMotor.(es)