The Indonesian Ministry of Transportation has announced the new price regulations for taxi services that are sold online such as Uber or Grab Taxi.
Most of this new regulation was already written in a regulation that was signed on 1 April 2017. A 3 month grace period was given until the new regulation was implemented on 1 July 2017.
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Pudji Hartanto Iskandar, the Director General of Land Transportation, revealed that the new tariffs for online taxis (Uber, Grab, Go-Jek) are calculated based on distance (kilometer) and also distinguished by region.
The new tariffs are;
- Bali, Java and Sumatra at minimum Rp 3,500 per kilometer and maximum Rp 6,000 per kilometer (Region I).
- Kalimantan, Sulawesi, Papua at minimum Rp 3,700 per kilometer and maximum Rp 6,500 per kilometer (Region II)
If an online taxi operator is caught violating these minimum or maximum tariffs then they will be subject to sanctions ranging from a warning to a revocation of their operational permit.
A few of the other regulations that are mentioned in the decree are the types of transportation, engine sizes, the limits of the special tariff, the quotas for the number of special leases, KIR (road worthy test), STNK (car registration), workshops, taxes, dashboard access and sanctions.
The government’s goal of this updated regulation is to protect both the consumers and the drivers. The government is also expecting this to encourage a more healthy competition between online and conventional taxis.
Do you think these new rules on tariffs will solve the hostility between the online taxi driver business and the traditional taxi drivers?
Let us know in the comments below.