TEMPO.CO, Jakarta - Transportation Ministry confirmed that two ride-hailing companies operating in Indonesia, Go-Jek and Grab, had increased their fares for online motorcycle taxi, or online ojek service. The increase is in line with the implementation of the new Ministerial Regulation No. 348/2019 on The Minimum and Maximum Fare of Online Ojek.

"The two [companies] raised their tariff starting [May 1]," said the Ministry's Director General of Land Transportation Budi Setiyadi, in a phone call with Tempo on Thursday, May 2, 2019.

Budi explained that he had a meeting with the Ministry's Director of Transport and Multimoda as well as the staffers on evaluation in light of the newly-implemented fares.

Meanwhile, Go-Jek Corporate Affairs Vice President Michael Say asserted that his firm had adjusted the online ojek tariff based on the ministerial regulation. Since the first day of the rate adjustment, Michael added, the country's first decacorn constantly monitor its service.

"We are evaluating the result of this trial to ensure the balance on consumer's demand for the sake of maintaining our partner’s income sustainability," said Michael via a short message.

Transportation Ministry regulated the new minimum and maximum tariff for online ojek based on three zones. According to the announcement released on March 25, 2019, Zone I includes Sumatra, Java (except Jakarta Greater Area), and Bali. The fare is set at IDR 1,850 up to Rp2,300 per kilometer.

Zone II includes Jakarta Greater Area or Jabodetabek (Jakarta, Bogor, Depok, Tangerang, and Bekasi), with the range of tariff at IDR 2,000 up to IDR 2,500 per kilometer. Meanwhile, Zone III includes Kalimantan , Sulawes , East Nusa Tenggara (NTT), Maluku, Papua, and West Nusa Tenggara (NTB). Fares for Zone III ranged from IDR 2,100 up to IDR 2,600 per kilometer.

Additionally, the ministry also managed the minimum service fee or the flagfall that is valid for a minimum distance of 4 kilometers. The flagfall for Zone I and Zone III is set at IDR 7,000 up to IDR 10,000, while Zone II is set at IDR 8,000 up to IDR 10,000.

FRANCISCA CHRISTY ROSANA