Budi Karya Sumadi: Conventional Transport Companies Must Change

TEMPO.CO, Jakarta - The recent protests by drivers of online transportation have become the main concern of Transportation Minister Budi Karya Sumadi. The rapid growth of this mode of transport is evidently clashing with existing regulations. Ministerial Regulation No. 32/2016 overseeing online transportation immediately triggered the protests when it became operational on October 1. "They just think about themselves without considering the safety of others," Budi told Tempo reporters Raymundus Rikang and Sapto Yunus last week.

Budi, who took office last July, remained adamant that drivers should comply with the regulation to protect the passengers' safety. Besides, he insisted, he had allowed them to take their tests and inspections at their respective motor vehicle dealers and delayed the regulation's operation date for another six months. 

Budi, a former CEO of the state-owned airport authority Angkasa Pura II, is convinced that after six months of publicizing the regulation, there would be no further protests about the regulation. "We will be publicizing all of its features," Budi explained.

In a special interview at his office, Budi shared his views on a number of issues, like the difficult-to-manage airlines and the mess created by the issues stemming from underpreparedness at Soekarno-Hatta International Airport's Terminal 3 when it first opened a few months ago. This interview is a resumption of talks following Budi's visit to the Tempo office three weeks ago. Excerpts:

Drivers of online transportation recently held a big protest. What don't they like about the regulation?

Three things: SIM (driving licenses), (motor vehicle) inspection and (motor vehicle registration, or STNK) licensing. Yet, all this is intended to ensure customers' safety, and it's not right for drivers to disregard them. On the other hand, I also don't want anything to happen to them on the streets.

Some drivers worry that those three requirements will make it difficult for them to compete with taxis.

They can still do it. Don't think that competition means besting the other side. We live together. We don't want taxis to (neglect) their responsibilities either. If it can be done online, fine. Taxis also go online, so they don't need to always be cruising, and that would save on gasoline. True, income would be a bit less, but that shouldn't be a problem. The overall effect would be that many people would do away with private cars and turn to taxis.

What solution did you offer to these online drivers?

About the drivers tests and vehicle inspections, for example, they resented the fact they had to pay, and that their vehicles would be tampered with. I told them they wouldn't have to pay and that inspections can be done at their own dealers' workshops, where their vehicles would not have to be fixed or changed. This system has already worked. This applies to public vehicles. It would be selfish of drivers to be taking paying passengers, when they hold driving licenses for personal and not for public vehicles. As for vehicle licensing, we are still looking for a scheme that is fair without causing problems between conventional and online transportation. We definitely want vehicle licenses to be linked to their associations or cooperatives to ensure some kind of interpersonal ties. If a problem arises, like something criminal, there would be collective accountability.

But the small-time drivers are still protesting. 

They shouldn't be thinking only of themselves but also about the safety of others. I have instructed the director-general of land transportation to seek out the leaders of those small groups and explain the objective of the regulation. We have met them one by one and I'm convinced they understand. We have met with two groups of drivers and they understood. The third group still don't get it, but I've asked them not exacerbate the situation.

Why is the ministry banning vehicles with less than 1,300cc capacity to go online?

Cars with those specifications have their limitations.

But what if they pass the inspection test?

They don't have the same servicing capacity. The safety component, especially for long distances, is inadequate. But I don't want to go in that direction. I want to see first how this regulation works out. That's why I delayed its effective date. Basically, if it brings the most economic (costs) to the vehicle and the most satisfaction to the consumers, what is there to object?

For how long will the regulation be delayed?

For the next six months. During that time, we will be socializing it among the groups. If necessary, we will discuss it with them one on none.

How sure are you that in six months' time, there will be no more protests?

I'm sure. We will be doing all kinds of outreach activities. Actually there are no more than 50 leaders among them. The others are just followers.

When will there be balanced rates between online and conventional transportation?

I hear that regular taxis have already lowered their rates, while the cost of online transportation have gone up slightly. In time, because of the large volume of the business, the cost of online transportation is bound to go up.

But consumers feel online transportation is better not just because of the rates, but because of the easy access.

They all have their best features. Taxis are better because there are more of them and they provide livelihoods for many families. The advantage of online transportation is the future technology, which the public appreciates, and the lower rates. If the two can agree, it would be great.

Does the government have plan to regulate the rates of online taxis?

At some point, those rates will go back to market prices. So I'm buying one year's time so they can come to a certain point when they can let go of their subsidies. There will be a time when online taxis become aware of competitive prices. (*)

Read the full interview in this week's edition of Tempo English Magazine