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Ganging Up on Uber

Translator

Editor

24 September 2015 09:14 WIB

Confiscated Uber taxi vehicles.

TEMPO.CO, Jakarta - Behind the Jakarta administration's stance in banning the rent of cars through the Uber app, there is a sense of unease that is difficult to conceal. This is because Jakarta has no satisfactory legal instrument to regulate the app business which seems limitless. Even Law No. 11/2008 on Electronic Information and Transactions does not cover in detail the use of specific apps for businesses.

The Uber car ban that was pushed through has proven to be ineffective. Despite the threats of raids and confiscations, the business continues to operate. If data from Uber can be believed, in Jakarta alone there are around 6,000 cars using the apps. Even with the threat of raids, Uber drivers are still carrying passengers. At the same time, more and more conventional taxi customers are switching to Uber.

The Jakarta administration should not have simply declared the Uber service illegal using the excuse that the San Francisco-based company does not have a representative office or transportation license in Jakarta. It is easy for Uber to refute these charges by claiming that it is an apps business, not a transportation venture. Besides, there are no clear rules yet banning the hiring of private vehicles. In fact, the law, government regulations and ministerial decrees on transport provide loopholes for care rental companies like Uber.

The argument that the Uber service does not pay taxes is not a strong one either. In Indonesia, Uber only works with car rental companies or transport cooperatives that have permits. Even if the government is unable to claim taxes on the commissions received by Uber, rental companies and cooperatives in Jakarta could be asked to pay. All that is needed is a system to stop rental companies and cooperatives from making false statements on their tax returns.

The ban on Uber does not have a strong legal basis because the regulations on car hire are unclear. All car rental companies need is a business permit from the Ministry of Trade. There is very little oversight on the vehicles' roadworthiness or how much income is made. In Jakarta, according to the Jakarta administration Transport Service, there are only six car rental companies that are legal or that have all the necessary permits. If the licensing of Uber is being questioned, hundreds of care rental companies operating throughout the capital should also be queried.

For the traditional taxi companies, the presence of Uber cars should not be seen as a threat. Uber as a challenge is a positive thing. They have long enjoyed special operating rights now Jakarta is closed to new taxi companies and they should continually improve their service. Only healthy competition will make them bigger. The government must create a business arena that is fair for those in the transport industry, and one which ensures that customers receive the best service at a reasonable price.

Learning from the many brawls between app-based and conventional motorbike taxi riders, the government must not close its eyes to the possibility of road rage from some cab drivers who lose out in competing with Uber. Instead of chasing after Uber drivers who may have done nothing wrong, the authorities should focus on preventing clashes between drivers, which could lead to an anarchic situation. (*)



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