Changing Direction

Transportation Ministry gives green light to amending ride hailing regulation

By Farida Susanty/The Jakarta Post
Monday, July 24, 2017

Transportation Minister Budi Karya Sumadi has opened up the possibility of revising a new regulation on ride-hailing apps over some unsettled issues, such as fleet size and vehicle registration.

Transportation Ministerial Regulation No. 26/2017 became effective on July 1.  

“If it [the change] is significant, we will revise it [the regulation]. If not, it will remain the same,” he said Wednesday.

The ministry has given more time to ride-hailing partners to shift the ownership of the vehicles from an individual to legal entities, such as companies or cooperatives, until their current vehicle registrations expire.

Budi further said that fleet size should be flexible to avert business stagnation.  

The government is yet to set a maximum size of fleet in different cities.

On this issue, Budi said the decision on fleet size ought to be assessed further to avoid abuse.

“What we reported [about ride-hailing apps] yesterday [during a limited Cabinet meeting] met with the President’s expectations. But he said this [ride-hailing services] should serve people although we should be careful.”

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