Saturday, 14 December 2019

Ministry to Appoint 3rd Party to Monitor Online Taxi Fares

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Petir Garda Bhwana

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  • TEMPO.CO, Jakarta - The Transportation Ministry plans to assign independent institutions as third-party supervisor to monitor the implementation of fare regulations for online taxis. The supervision is deemed necessary to ensure that passengers are not harmed.

    "We will appoint a third party to carry out supervision under our orders. They will submit reports for us to act upon," the ministry's Director General of Land Transportation Budi Setyadi said here on Tuesday, December 18.

    Transportation Minister Budi Karya Sumadi signed a new regulation for online taxis on Tuesday afternoon. The new rule, replacing the Transportation Minister's Regulation no.108/2017, will be effective in May, 2019.

    The Ministry's Director of Transport and Multimoda Ahmad Yani said the third party would be independent institutions appointed by the ministry.  However, the authority to regulate tariff violations between two operators remains in the hands of the Business Competition Supervision Commission (KPPU).

    The ministry has not decided which institutions to be appointed, he said. The decision will be made in January 2019.

    Budi said that online taxi providers have agreed to the new fares set by the ministry, which is between Rp3,500 and Rp6,500.

    "During peak hours, they are allowed to raise the fare, but no more than Rp6,500. If it's higher than that, they are breaking the rule. Also during slow hours they must not lower the fare to less than Rp3,500," he said in Jakarta, Wednesday, December 12.

    MUHAMMAD HENDARTYO