Gov't Allows Online Ojek Discounts on Conditions

TEMPO.CO, Jakarta - Land Transportation Director General Budi Setiyadi said he had issued a circular in light of online-based taxis or online ojek promotional tariffs. He assured ride-hailing applicators were allowed to offer discounts or promotions.

“So discounts are not banned, but on some conditions as we have set the price ceiling and floor. We hope the two applicators will not apply discounts lower than the price floor,” said Budi in his office, Friday, July 5.

Following the issuance of the circular, Budi hoped the Transportation Ministry and the two leading applicators (Go-Jek and Grab Indonesia) could establish sound cooperation. He added that prior to the circular issuance, his side had held a coordination meeting with several ministries and institutions overseeing tariff control, particularly the Business Competition Supervisory Commission (KPPU). 

Read: Grab, Gojek Respond to Ban on Online Ojek Discounts

Therefore, based on the meeting results, it was hoped that applicators would not offer promotions for too long, and that there would be certain limits on the matter. 

The tariffs of online ojek are regulated in the Transportation Minister's Decree No. 12 of 2019, which was announced Monday, March 25. The policy stipulated the taxi rates based on zones or areas and the flagfall tariffs.

HENDARTYO HANGGI | FRANCISCA CHRISTY ROSANA | EKO WAHYUDI