Groups of motorcycle riders sporting green jackets emblazoned with the logos “Gojek” and “Grab Bike” are rapidly becoming a common sight in the Indonesian capital, and can be found on virtually every street in Jakarta these days. The two above-mentioned companies represent a new type of application-based transportation that is currently taking Indonesia, and indeed the world beyond, by storm. Grab Car and Uber Taxi are also in the mix here and ultilize their own device-based applications for the purposes of reservations and ordering.
Jakarta’s perpetually jammed streets have ensured that the breakthrough, two-wheeled services Gojek and Grab Bike have instantly won the hearts of the city's urban commuters. This new type of transportation enables passengers to reach their destinations quickly and efficiently, while the fares remain affordable. There are also a few bonus discounts available to act as further incentives to Jakarta’s citizens.
Despite all of the above positive selling points though, the continued existence of this new type of transportation is now in question due to a lack of formal legal standing. Fery Djemi Francis, Chairman of the Commission V at the House of Representatives, applauds the breakthroughs being made by these new application-based transportation services, and sees them as a fitting response to the government’s inability to provide cheap, fast and comfortable public transportation. However, Mr. Francis also firmly believes that these services desperately require legal protection.
Lawmaker Epyardi Asda (Commission V) adds that transportation services such as Gojek, Grab Bike, Uber Taxi, and Grab Car offer essentially the same services as other businesses, which is why, he believes, they need to obtain proper business licenses.
“These new companies should not be operating without first obtaining an official business license. If they obtain such a license from the city administration, then there should be no problem,” explained Mr. Asda.
The absence of regulation pertaining to these revolutionary application-based transportation services represents another problem in urgent need of a solution. Mr. Asda asserts that a new regulation need to be formulated in order to protect those working for these application-based transportation businesses, as well as to prevent breaches of prevailing laws and regulations.
Deddy Herlambang, Executive Director of the Indonesian Transportation Society (MTI), has stated that the Gojek, Grab Bike, Uber Taxi and Grab Car phenomena are reliant on mobile-web applications in order to obtain customers. Uber Taxi and Grab Car also cooperate with rental-car businesses, and these rental cars, with their private-vehicle license plates, pick up passengers via the use of such apps.
Mr. Herlambang has pointed out that Gojek, Grab Bike, and conventional ojeks (motorcycle taxis) are not officially counted as public transportation, since they also sport the black license plates used by private vehicles. Uber Taxi and Grab Car are most definitely offering public-transportation services however, despite not being in possession of the official yellow license plates found on taxis. In terms of legal requirements, Gojek and Grab Bike are subject to vehicle tax, vehicle inspections every semester, and insurance payments, while Uber Taxi and Grab Car are only subject to vehicle tax.
Land-transportation service businesses are regulated by Law No. 22 of 2009 on Traffic (Traffic Law), Government Regulation No. 82 of 2012 on Organizing Electronic Transactions and Systems, as well as Government Regulation No. 74 of 2012 on Land Transportation. However, providers of application-based transportation services are not yet subject to these regulations.
“Currently, there are no regulations regarding sales through the utilization of information technology or apps. It is thus clear that a new regulation is necessary in order to determine whether such application-based sales are legal or not. A regulation is urgently needed, which clearly defines the legal status of these companies, as well as the legal requirements that they must comply with,” Mr. Herlambang explained.
Legal Framework
Mr. Herlambang is encouraging the government to issue a new regulation on application-based transportation. In his view, the government should use the country's Traffic Law and Law No. 11 of 2008 on Information and Electronic Transactions (IT Law) as references in order to formulate either a government regulation or presidential regulation.
“I don’t think that a law is necessary. A presidential regulation should suffice, since that would enable the Ministry of Transportation, National Police, and the Ministry of Communications and Informatics [Depkominfo] to cooperate with each other in the handling of this matter,” stated Mr. Herlambang.
Mr. Asda is in agreement with Mr. Herlambang on this and believes that while a law regulates matters involving a majority of the populace, specific matters such as these should be organized by the implementation of regulations under the level of the law.
“As an example, the Ministry of Transportation could issue a ministerial regulation, or a presidential decree could be formulated. However, a complete new law is not necessary for the regulation of these new businesses,” concluded Mr. Asda.
Groups of motorcycle riders sporting green jackets emblazoned with the logos “Gojek” and “Grab Bike” are rapidly becoming a common sight in the Indonesian capital, and can be found on virtually every street in Jakarta these days. The two above-mentioned companies represent a new type of application-based transportation that is currently taking Indonesia, and indeed the world beyond, by storm. Grab Car and Uber Taxi are also in the mix here and ultilize their own device-based applications for the purposes of reservations and ordering.
Jakarta’s perpetually jammed streets have ensured that the breakthrough, two-wheeled services Gojek and Grab Bike have instantly won the hearts of the city's urban commuters. This new type of transportation enables passengers to reach their destinations quickly and efficiently, while the fares remain affordable. There are also a few bonus discounts available to act as further incentives to Jakarta’s citizens.
Despite all of the above positive selling points though, the continued existence of this new type of transportation is now in question due to a lack of formal legal standing. Fery Djemi Francis, Chairman of the Commission V at the House of Representatives, applauds the breakthroughs being made by these new application-based transportation services, and sees them as a fitting response to the government’s inability to provide cheap, fast and comfortable public transportation. However, Mr. Francis also firmly believes that these services desperately require legal protection.
Lawmaker Epyardi Asda (Commission V) adds that transportation services such as Gojek, Grab Bike, Uber Taxi, and Grab Car offer essentially the same services as other businesses, which is why, he believes, they need to obtain proper business licenses.
“These new companies should not be operating without first obtaining an official business license. If they obtain such a license from the city administration, then there should be no problem,” explained Mr. Asda.
The absence of regulation pertaining to these revolutionary application-based transportation services represents another problem in urgent need of a solution. Mr. Asda asserts that a new regulation need to be formulated in order to protect those working for these application-based transportation businesses, as well as to prevent breaches of prevailing laws and regulations.
Deddy Herlambang, Executive Director of the Indonesian Transportation Society (MTI), has stated that the Gojek, Grab Bike, Uber Taxi and Grab Car phenomena are reliant on mobile-web applications in order to obtain customers. Uber Taxi and Grab Car also cooperate with rental-car businesses, and these rental cars, with their private-vehicle license plates, pick up passengers via the use of such apps.
Mr. Herlambang has pointed out that Gojek, Grab Bike, and conventional ojeks (motorcycle taxis) are not officially counted as public transportation, since they also sport the black license plates used by private vehicles. Uber Taxi and Grab Car are most definitely offering public-transportation services however, despite not being in possession of the official yellow license plates found on taxis. In terms of legal requirements, Gojek and Grab Bike are subject to vehicle tax, vehicle inspections every semester, and insurance payments, while Uber Taxi and Grab Car are only subject to vehicle tax.
Land-transportation service businesses are regulated by Law No. 22 of 2009 on Traffic (Traffic Law), Government Regulation No. 82 of 2012 on Organizing Electronic Transactions and Systems, as well as Government Regulation No. 74 of 2012 on Land Transportation. However, providers of application-based transportation services are not yet subject to these regulations.
“Currently, there are no regulations regarding sales through the utilization of information technology or apps. It is thus clear that a new regulation is necessary in order to determine whether such application-based sales are legal or not. A regulation is urgently needed, which clearly defines the legal status of these companies, as well as the legal requirements that they must comply with,” Mr. Herlambang explained.
Legal Framework
Mr. Herlambang is encouraging the government to issue a new regulation on application-based transportation. In his view, the government should use the country's Traffic Law and Law No. 11 of 2008 on Information and Electronic Transactions (IT Law) as references in order to formulate either a government regulation or presidential regulation.
“I don’t think that a law is necessary. A presidential regulation should suffice, since that would enable the Ministry of Transportation, National Police, and the Ministry of Communications and Informatics [Depkominfo] to cooperate with each other in the handling of this matter,” stated Mr. Herlambang.
Mr. Asda is in agreement with Mr. Herlambang on this and believes that while a law regulates matters involving a majority of the populace, specific matters such as these should be organized by the implementation of regulations under the level of the law.
“As an example, the Ministry of Transportation could issue a ministerial regulation, or a presidential decree could be formulated. However, a complete new law is not necessary for the regulation of these new businesses,” concluded Mr. Asda.