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Too Many Online Taxis May Lead to Non-performing Loan, Luhut Says

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13 March 2018 22:00 WIB

Taxis block a main road in Budapest's city centre, Hungary, January 18, 2016. Taxi drivers were protesting against the online taxi-hailing service Uber, demanding authorities to ban the service, according to local media. REUTERS/Laszlo Balogh

TEMPO.CO, Jakarta - Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan explained that the government introduced a quota limiting online taxis to avoid the potential of non-performing loans.

“The equilibrium will not be reached if there are too many online taxis. We must protect 70 percent of potential non-performing loans,” said Luhut Binsar at the Presidential Palace Complex in Jakarta today, March 13.

Read: Government Protects Drivers Income by Limiting Online Taxis

According to Luhut, the government deemed that the number of online taxis has exceeded the existing quota. The government has to consider the availability of both online taxi units and public demands to continue recruiting online taxi drivers.

“The government would also like to add the quota, but we don’t want that to cause the industry to collapse. Because the government would be blamed if that happens,” he said. Non-performing loan in the automotive industry is highly likely to happen in a highly competitive market.

The Indonesian government through the Transportation Ministry has set a quota for online taxis in every region in the country since Monday, March 5. The government also ordered the business to not open more new recruitment. However, they will publically announce the online taxi quota addition when the time comes.

Furthermore, Minister Budi Karya said that the quota of online taxis in each region is various, such as the Jakarta Greater area with 36,510 car units, West Java with 15,418 units, Central Java with 4,935 units, East Java with 4,445 units, and Aceh with 748 units. 

ANTARA




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