Gov't Announce New Online Taxi Regulation, Except its Tariff



Petir Garda Bhwana

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  • TEMPO.CO, Jakarta - The long awaited legal protection for online taxis, or online ride-hailing apps, was just announced under the Transportation Ministry’s Decree No.12/2019. However, this decree has yet set a fixed tariff.

    The Ministry’s Director General of Land Transportation Budi Setiyadi said that online taxi’s upper and lower tariff cap will be introduced in a separate Decree.

    “There will later be adjustments every three months,” said Budi in Jakarta on Monday, March 18.

    Read also: Go-Jek, Grab Urged to Provide Online Ojek Shelter

    According to Budi, the ministry is struggling to set online taxis’ tariff following the lack of agreement between online taxi application companies and its field partners, or drivers. The drivers insists for a tariff of Rp3,000/kilometer, however, app companies maintains at the level of Rp1,600/kilometer.

    Another solution was brought to the table by online taxi companies to impose the lower cap tariff for shorter routes such as the first 4-5 kilometers.  This idea may charge customers up to Rp9,000-10,000 for short routes.

    Transportation Minister Budi Karya Sumadi said confirmed that the issue of online taxi tariff will be completed by the end of this week.