Online Taxi Regulation Proves Complicated

KOMPAS/TOTOK WIJAYANTO

Ride-hailing drivers ride in convoy on Jl. Merdeka Barat to the Presidential Palace in Jakarta for a rally on Tuesday (27/3). They demanded the government regulate fares of online ride-hailing services to prevent price wars to the detriment of drivers.

JAKARTA, KOMPAS — Massive street protests conducted by drivers of app-based motorcycle taxis paralyzed Jl. Medan Merdeka Barat street in Central Jakarta on Tuesday. The drivers demanded the government set a minimum tariff, so that the ride-sharing application providers cannot freely cut the fare to promote their services.

The app providers often run sales promotions to attract customers and gain an edge over competing providers. As a result, driver revenue drops. Moreover, the number of motorcycle taxi drivers continues to increase. Automatically, there is growing competition among the drivers.

In addition to the low fares issue, the overall operation of the so-called taxis is complicated. The app-based taxi services are not recognized as a form of public transportation under Law No. 22/2009 on Traffic and Public Transportation. Motorcycles are not suitable vehicles for public transportation, especially for long distances. This is related to the safety and security of passengers and drivers.

However, the motorcycle taxi service has grown rapidly, because it is cheap and fast and because the agile vehicles easily breaks through congested traffic. Until now, there are no clear rules about these online-based taxis.

President Joko “Jokowi” Widodo also instructed Transportation Minister Budi Karya Sumadi and Communications and Information Minister Rudiantara to discuss these issues with the affected parties.

"I have instructed the transportation minister and the communications and information minister along with motorcycle taxi representatives to meet and discuss ways to resolve the fare problem," the President said after meeting with a representative of the motorcycle taxi drivers at the Presidential Palace on Tuesday.

According to the President, in principle, no party should be sacrificed in the provision of public transportation services including online-based taxis. The President said it might be necessary to set up upper and lower fare limits for the app-based taxi services. "However, that has yet to be decided. It will be discussed during the meeting tomorrow,” he said.

During a meeting with five representatives of motorcycle taxi drivers, the President was accompanied by State Secretary Pratikno, Transportation Minister Budi Karya Sumadi and the chief of the Presidential Staff, Moeldoko. Meanwhile, the motorcycle taxi drivers were represented by Fitrijansjah Toisutta, Ari Nurpriyanto, M Rahman Tohir, Andrianus Sulistyanto and Tagor Maju F.

During the rally, the motorcycle taxi drivers demanded that the price be locked to the range of Rp 3,500 to Rp 4,000 per kilometer.

The fares determined by the app companies so far are deemed too low. Thousands of motorcycle taxi drivers using the apps Gojek, Grab and Uber joined the protest. Some had come from as far away as Central Java and Yogyakarta. The rally took place in the front of the Merdeka Palace from 10 a.m. until 3 p.m.

Jefri, a Grab driver, said that with the promotion fares, drivers could receive as little as Rp 2,000 per passenger. "For example, the normal tariff is Rp 7,000, but because there is a promotion, it is cut by 70-90 percent. We can only pocket Rp 2,000, or even Rp 0," he said.

Rama, who drives for Gojek, said the promotional fares offered by Grab also hurt drivers of other app-based taxi services, because passengers chose the lower fares. He expressed his hope that the government can standardize the fares to avoid a price war.

Fitrijansjah Toisutta, one of the representatives of the protesters from the group of G99 Indonesia, who were received by the President, said the standard motorcycle taxi fare ranged from Rp 4,000/km to Rp 1,600/km. All app companies cut the fares and Uber was the first to launch promotional fares.

"Rates must be uniform and controlled. Otherwise, the fare could be as low as Rp 500 per kilometer. In fact, there was inflation, there was an increase in fuel prices, there was an increase in the minimum wage, but the fares for the motorcycle taxis were lowered," he said.

According to Fitrijansjah, registration for new motorcycle taxi drivers should be closed, because their number was already too high. There are now millions of online motorcycle taxi drivers in Indonesia. In the Jabodetabek area, according to Fitrijansjah\'s estimates, there are 1 million motorcycle taxi drivers.

Badai Asmara, a field coordinator of the demonstration, said the drivers were asking for an increase in the fares because it was “no longer logical”. The fare should be raised so that it is equal to the basic cost of living (KHL) of Rp 3.6 million per month.

KOMPAS/WISNU WIDIANTORO

Five men representing drivers for ride-hailing services meet President Joko “Jokowi” Widodo and some ministers at the Presidential Palace in Jakarta on Tuesday (27/3). They were conveying the demands of a rally staged by thousands outside the Palace.

Meeting on Wednesday

Transportation Minister Budi Karya Sumadi said he, together with Communications and Information Minsiter Rudiantara, would meet with the app providers at the Office of the Presidential Staff on Wednesday at 4 p.m.

"They have been invited to hear the complaints of online motorcycle taxi drivers, who feel the fare is very low. So, because the fare issue is not our authority, but the authority of the app providers. The President asked us to meet at the Office of the Presidential Staff tomorrow," said Budi.

In addition, Budi said, several other issues were to be discussed, for example what happens if they are sick.

Budi said the government could not talk about rules that do not exist at this stage. "Right now, it is important that their complaints can be solved," he said.

Online taxis

On Tuesday afternoon, dozens of representatives of online-based car taxis also met with the Chief of Presidential Staff, Moeldoko, accompanied by Deputy IV for Political Communication and Information Dissemination Eko Sulistyo.

The online taxi drivers, who are members of the National Online Drivers Alliance (Aliando), conveyed their objection to Transportation Ministry Regulation No. 108/2017 on Free-Route Public Transportation.

Under these rules, drivers are required to join the cooperative, which they say can reduce the independence of the driver. In addition, the requirement to replace SIM A driver’s licenses with SIM A General licenses was considered costly and difficult. A rule requiring online taxis to use stickers was also rejected.

"If there is no decision from the government by April 1, we will hold a street rally in all cities and provinces of Indonesia against Regulation No. 108 until it is revoked," Ari Baja of Aliando said after the meeting.

Responding to this, Moeldoko said he would talk with the transportation minister and the communications and information minister as soon as possible.

(WAD/ARN/HAR/INA/DD01)