TEMPO.CO, Jakarta - Transportation Ministry did not have special sanction for companies providing online-based ride-hailing or online ojek that neglecting the ceiling price set by the regulator. The regulation on the ceiling price was noted in Ministerial Decree No. 348 of 2019 and was applied for trial starting May 1.

“We don’t impose a sanction. We can only report it to the KPPU (Business Competition Supervisory Commission) and Ministry of Communication and Informatics,” said the ministry’s director for public transportation and multi-mode when met at the ministry’s office, on Monday, May 6.

The KPPU has the authority to reprimand a company that violating the policy and caused unhealthy competition. Because the agency was authorized to monitor business competition.

Read: Go-Jek Claims to See Fewer Passenger Orders Following Tariff Hike

Transportation Ministry did not regulate sanctions for applicators in the new policy. Ahmad Yani added that his side also did not have the power to shut down application providers.

According to him, the ministry could take an informal approach to the violator. This was carried out toward Go-Jek that did not follow the recommended tariff set by the ministry.

The head of the Indonesian online transport service association (PPTJDI) Igun Wicaksono reported earlier that Go-Jek applied the lower limit rate under tariffs set by the ministry on May 2-3, 2019.

Meanwhile, Go-Jek Chief of Corporate Affairs Nila Marita said her company found a significant decline on online ojek orders during the first three days of the policy implementation, and that affected driver partners’ income.

FRANCISCA CHRISTY ROSANA