Online Taxi Fiasco, Luhut: Do not let conventional taxi went bust

TEMPO.CO, Jakarta - Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan said that online-based taxi investors who refused to comply with the government's regulations can just leave the country. Luhut underlined that all companies must comply with the government' regulation.

"They can't refuse [to comply], if they refuse, just leave [Indonesia]. We make the rules. It's that simple. We protect investments in Indonesia," Luhut said on Thursday, March 23, 2017.

Luhut asserted that the government will not give any privilege to online-based taxi. Luhut said that the government must provide equal treatment for both online-based taxi and conventional taxi. "So don't stand for online-based taxi but letting Blue Bird and other taxis went bust. Therefore, we provide the lower limit and the upper limit [tariffs], so they can [compete]," Luhut said.

The government will soon issue a regulation on conventional and online-based public transportation in Indonesia. Therefore, Luhut said that he will hold a coordination meeting on Friday, March 24, 2017. In the meeting, the government will set several ground rules, including rules on tariffs to encourage fair business competition.

Luhut asserted that in setting the new tariffs, the government has attempted to formulate a balanced fare by analyzing tariff systems used by online-based and conventional taxi companies.

Director General of Land Transportation of the Transportation Ministry Pudji Hartanto, said that online-based taxi tariffs need to be regulated to protect customers, especially during rush hour. Pudji explained that customers must be protected and online-based taxi companies must not be allowed to apply tariff surge during rush hour.

"The same principle applies during off-peak time, the government must protect the drivers. Don't let the tariffs drop significantly, drivers will suffer," Pudji said on Monday, March 20, 2017.

DESTRIANITA