Govt Mandates Grab, Go-Jek to be Transportation Companies

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  • App-based motorcycle taxi, Go-jek. TEMPO/M IQBAL ICHSAN

    App-based motorcycle taxi, Go-jek. TEMPO/M IQBAL ICHSAN

    TEMPO.CO, Jakarta - Transportation Minister Budi Karya Sumadi mandates two transportation app companies, Grab and Go-Jek, to become transportation companies. Grab and Go-Jek are currently running a vendors business.

    The ministry's secretary general Sugihardjo said there are two powerful reasons for this policy. 

    "First of all, these apps provide wages. Secondly, they regulate the operation of ojeks and taxis," he said here on Tuesday, April 3.

    Sugihardjo said that an app company has no right to provide wages and arrange operational activities.

    Read: Thousands of GoJek, Grab Driver Stage Protest for Equal Treatment

    "Just like when we purchase an app, it becomes ours and we have the authority to set it up. But for online motorcycle taxis, for example, is tariff is Rp50,000 the driver doesn’t get that exact amount—he only gets a cut from the application," he explained.

    In operational activities, he added, ojek drivers are also unable to decide which order to take, as it is determined by the app. 

    In other words, Sugihardjo said that Go-Jek and Grab are application-based transportation companies. "They are companies that sell application-based public transportation services," he said.