Decisiveness: Let Us Learn from Other Countries

The issues surrounding ride-hailing transportation service companies are not exclusive to Indonesia. Our neighbors, including Malaysia, Singapore and Thailand, apply strict rules to regulate the companies and their services.

KOMPAS/RONY ARIYANTO NUGROHO

Ojek drivers register on Tuesday with ride-hailing services company Grab in Srengseng, West Jakarta. The company is registering all former ojek drivers of Uber following its acquisition of Uber’s Southeast Asian operations.

JAKARTA, KOMPAS – The issues surrounding ride-hailing transportation service companies are not exclusive to Indonesia. These companies offer alternative transportation services all over the world. Our neighbors, including Malaysia, Singapore and Thailand, apply strict rules to regulate the companies and their services, as do the US and Europe.

What about in Indonesia? The numerous problems arising in connection with these companies require the government to be strict and decisive, but we have yet to see any clear or strict rules. The government is instead engaged in a long and continuous process in its effort to safeguard the interests of all parties.

“The government needs to protect the interests of both the companies and the drivers, as well as to serve the people and their interests properly, to ensure their safety and comfort and to prevent the prices from increasing too much,” Vice President Jusuf Kalla said on Tuesday (3/4/2018) at his office in Jakarta.

The latest regulation on the issue is Transportation Minister Regulation No. 108/2017 on Non-route Public Transportation Services. This regulation derives from Law No. 22/2009 on Traffic and Transportation. The ministerial regulation requires all ride-hailing drivers to have a public transportation driver’s license and all vehicles used in the service to pass the roadworthiness test.

As these requirements were deemed too much of a burden, ride-hailing drivers held a protest last week. This led to a delay in implementing the regulation, which also protects consumers. Meanwhile, ride-hailing ojek (motorcycle taxi) services remain unregulated, as motorcycles are not recognized as public transportation vehicles under Law No. 22/2009.

Transportation Minister Budi Karya Sumadi has called on ride-hailing companies not to hire any new drivers for the time being. Today, these drivers already number three to four times the current demand. In Jakarta, Bogor, Depok, Tangerang and Bekasi (Greater Jakarta), for instance, 175,000 ride-hailing vehicles are in operation, while the quota is 36,510.

Kalla said that despite the delays in implementing Transportation Minister Regulation No. 108/2017, consumer protection was ensured, as legal violations can still be punished under the Criminal Code (KUHP). The digital records of consumers, drivers and license plate numbers of the vehicles used in providing ride-hailing services make it easier to investigate such violations.

Kalla said the government had instructed the Transportation Minister to regulate ride-hailing services. However, communication must also be fostered between all stakeholders.

Different from Indonesia’s uncertain stance, the Deutsche Welle news portal reported in late 2017 that governments across Europe had collectively declared ride-hailing services as public transportation. The policy was followed by binding rules, including special licenses for drivers, companies’ assuring drivers’ wages in accordance with minimum wage regulations and their right to annual leave.

In Canada, Edmonton authorities require ride-hailing companies to register as transportation companies and to be insured.

In the past year following its move to legalize ride-hailing companies, the Edmonton City Council noted that ride-hailing companies such as Uber had shared the market with conventional or traditional taxi services much better than in previous years.

CBC news said that Uber ceased services temporarily in March 1-July 1, 2016 while the city administration processed its insurance policy, particularly on ride-sharing and carpooling services.

Public transportation companies such as taxis have generated revenues of up to 987,000 Canadian dollars (C$), and ride-hailing companies such as Uber and TappCar have generated up to C$482,000. Local city administrations were pleased that ride-hailing services and traditional transportation services could work hand-in-hand.

In New York, the taxes imposed on ride-hailing companies are used to maintain and improve the city’s roads. The New York Times wrote that the city council agreed last week to impose a special tax on vehicles traveling certain streets in Manhattan.

The taxes for Uber and Lyft, for instance, are set at US$2.75 for a single passage, while the tax for conventional taxis is US$2.50. An increased tax was also imposed on carpooling services, such as Via and uberPOOL, at 75 US cents per passenger.

(INA/BEN/NEL)