Minister of Transportation, Ignasius Jonan. Photo by: RES
Application-based transportation continues to court controversy following the recent high profile strike and demonstration by Jakarta’s traditional taxi drivers. This public demonstration ultimately escalated into violence which was directed at employees of the new app-based services, as well as at a number of taxi drivers who elected to ignore the strike and continue working.
Commenting on the current battle taking place between conventional taxis and the application-based transportation companies, Indonesia’s Minister of Transportation, Ignasius Jonan, announced that privately owned vehicles sporting black license plates would be allowed to transport passengers, so long as such vehicles passed the periodic inspections commonly known as “kir inspections”.
“Vehicles sporting black license plates will be allowed to transport passengers in future, although for safety purposes they will be required to pass kir inspections,” asserted Minister Jonan from Jakarta on Tuesday, 22 March 2016.
Minister Jonan explained that the kir inspections provided valuable information relating to private vehicles to the government via a registration process which hopefully ensures the safety and security of transportation as a whole.
“Why should vehicles be registered? So that the government has the relevant data at its fingertips in order to determine who owns or drives a given vehicle. Vehicles sporting black license plates will in future be allowed to legally transport passengers, so long as they pass a kir inspection first,” asserted Minister Jonan.
Minister Jonan also addressed the legal status of public-transportation providers by referring to Law No. 22 of 2009 on Traffic and Land Transportation (Transportation Law). The Transportation Law stipulates that public-transportation providers must become legal entities, either in the form of foundations, cooperatives, or limited-liability companies (perseroan). Based on this provision, Minister Jonan is of the opinion that there is ultimately no need to draft a replacement for the current Transportation Law which will specifically regulate application-based transportation businesses.
“There is no need to formulate a whole new law, because the relevant provisions already exist,” asserted Minister Jonan.
Minister Jonan also outlined another two requirements which must be met if the owners of privately owned vehicles intend to offer public transportation services, namely the requirement to secure an official operational transportation license, as well as the requirement to pay any relevant taxes. Any application-based transportation operation which doesn’t meet these three requirements will be declared illegal.
“I have already asked Kemenkominfo [the Ministry of Communication and Information Technology] to temporarily block access to these web-based transportation applications while this matter is being processed. However, despite claiming that such access blocking can be implemented immediately, the apps remain online, which I don’t understand,” explained Minister Jonan.
Kemenkominfo has indeed yet to block access to any of the popular transportation applications, despite having already agreed on this measure with the Minister of Cooperatives Small- and Medium-Scale Businesses.
Djoko Serijowarno, a transportation expert at Soegijapranata Catholic University, asserted in a recent statement that application-based transportation companies should secure the necessary operational licenses, just as conventional taxis have to.
“Even if some of these companies have already secured legal-entity status, such as is the case with cooperatives, they should nevertheless still apply for operational licenses, just as conventional taxis do,” asserted Mr. Serijowarno.
Mr. Serijowarno asserted that this obligation was regulated under Minister of Transportation Decree No. KM 35 of 2003 on Organizing Land Passenger Transportation Using Public Transportation Vehicles. Moreover, Mr. Serijowarno believes that taxi companies should also be required to pay the mandatory premiums for accident liability insurance, as well as operate vehicles which fully comply with the necessary technical and roadworthiness regulations.
“Moreover, the licensing process itself should be transparent and not involve any corrupt practices, as corruption in this context tends to hamper business development and places an unnecessary burden on businesses,” Mr. Serijowarno stated.
Mr. Serijowarno also affirmed that officially licensed taxis had to satisfy certain conditions, such as the requirements to prominently display a specific company logo, to be fully equipped with a functional meter, and to transport passengers from door to door along their desired routes. Mr. Serijowarno also stated that the determination of legal operational areas for taxis should take several factors into account, such as the need for such transportation services in a given area, the development of urban or city areas, and the availability of sufficient road infrastructure.
“Taxi-type transportation should be non-scheduled, involve vehicles of a sedan or van class, encompass measured fares using a fare meter, and transport passengers from door to door,” explained Mr. Serijowarno.
Vehicles used for taxi transportation should also have electrically lit placards containing the word “TAXI” affixed to their roofs. This placard must light up in either white or yellow when available for hire and be turned off when occupied by passengers. The vehicle must also be equipped with air conditioning, prominently display a company name and logo, have a yellow distress light, display a driver identification card on its dashboard, be fitted with a communications radio, have a set flag-fall fare, and be fitted with a distance meter which accurately records time and additional fares. Moreover, the vehicle’s unit-registration number and fare meter should be installed by an authorized government institution.
Mr. Serijowarno also believes that advances in modern information technology that enable passengers to easily reserve taxis online suggests the introduction of a non-binding additional regulation which encourages taxi businesses to develop their own web-based systems.
“However, this policy must not be mandatory, because taxis across many of Indonesia’s regions are still able to operate effectively using conventional methods,” Mr. Serijowarno concluded.
Minister of Transportation, Ignasius Jonan. Photo by: RES
Application-based transportation continues to court controversy following the recent high profile strike and demonstration by Jakarta’s traditional taxi drivers. This public demonstration ultimately escalated into violence which was directed at employees of the new app-based services, as well as at a number of taxi drivers who elected to ignore the strike and continue working.
Commenting on the current battle taking place between conventional taxis and the application-based transportation companies, Indonesia’s Minister of Transportation, Ignasius Jonan, announced that privately owned vehicles sporting black license plates would be allowed to transport passengers, so long as such vehicles passed the periodic inspections commonly known as “kir inspections”.
“Vehicles sporting black license plates will be allowed to transport passengers in future, although for safety purposes they will be required to pass kir inspections,” asserted Minister Jonan from Jakarta on Tuesday, 22 March 2016.
Minister Jonan explained that the kir inspections provided valuable information relating to private vehicles to the government via a registration process which hopefully ensures the safety and security of transportation as a whole.
“Why should vehicles be registered? So that the government has the relevant data at its fingertips in order to determine who owns or drives a given vehicle. Vehicles sporting black license plates will in future be allowed to legally transport passengers, so long as they pass a kir inspection first,” asserted Minister Jonan.
Minister Jonan also addressed the legal status of public-transportation providers by referring to Law No. 22 of 2009 on Traffic and Land Transportation (Transportation Law). The Transportation Law stipulates that public-transportation providers must become legal entities, either in the form of foundations, cooperatives, or limited-liability companies (perseroan). Based on this provision, Minister Jonan is of the opinion that there is ultimately no need to draft a replacement for the current Transportation Law which will specifically regulate application-based transportation businesses.
“There is no need to formulate a whole new law, because the relevant provisions already exist,” asserted Minister Jonan.
Minister Jonan also outlined another two requirements which must be met if the owners of privately owned vehicles intend to offer public transportation services, namely the requirement to secure an official operational transportation license, as well as the requirement to pay any relevant taxes. Any application-based transportation operation which doesn’t meet these three requirements will be declared illegal.
“I have already asked Kemenkominfo [the Ministry of Communication and Information Technology] to temporarily block access to these web-based transportation applications while this matter is being processed. However, despite claiming that such access blocking can be implemented immediately, the apps remain online, which I don’t understand,” explained Minister Jonan.
Kemenkominfo has indeed yet to block access to any of the popular transportation applications, despite having already agreed on this measure with the Minister of Cooperatives Small- and Medium-Scale Businesses.
Djoko Serijowarno, a transportation expert at Soegijapranata Catholic University, asserted in a recent statement that application-based transportation companies should secure the necessary operational licenses, just as conventional taxis have to.
“Even if some of these companies have already secured legal-entity status, such as is the case with cooperatives, they should nevertheless still apply for operational licenses, just as conventional taxis do,” asserted Mr. Serijowarno.
Mr. Serijowarno asserted that this obligation was regulated under Minister of Transportation Decree No. KM 35 of 2003 on Organizing Land Passenger Transportation Using Public Transportation Vehicles. Moreover, Mr. Serijowarno believes that taxi companies should also be required to pay the mandatory premiums for accident liability insurance, as well as operate vehicles which fully comply with the necessary technical and roadworthiness regulations.
“Moreover, the licensing process itself should be transparent and not involve any corrupt practices, as corruption in this context tends to hamper business development and places an unnecessary burden on businesses,” Mr. Serijowarno stated.
Mr. Serijowarno also affirmed that officially licensed taxis had to satisfy certain conditions, such as the requirements to prominently display a specific company logo, to be fully equipped with a functional meter, and to transport passengers from door to door along their desired routes. Mr. Serijowarno also stated that the determination of legal operational areas for taxis should take several factors into account, such as the need for such transportation services in a given area, the development of urban or city areas, and the availability of sufficient road infrastructure.
“Taxi-type transportation should be non-scheduled, involve vehicles of a sedan or van class, encompass measured fares using a fare meter, and transport passengers from door to door,” explained Mr. Serijowarno.
Vehicles used for taxi transportation should also have electrically lit placards containing the word “TAXI” affixed to their roofs. This placard must light up in either white or yellow when available for hire and be turned off when occupied by passengers. The vehicle must also be equipped with air conditioning, prominently display a company name and logo, have a yellow distress light, display a driver identification card on its dashboard, be fitted with a communications radio, have a set flag-fall fare, and be fitted with a distance meter which accurately records time and additional fares. Moreover, the vehicle’s unit-registration number and fare meter should be installed by an authorized government institution.
Mr. Serijowarno also believes that advances in modern information technology that enable passengers to easily reserve taxis online suggests the introduction of a non-binding additional regulation which encourages taxi businesses to develop their own web-based systems.
“However, this policy must not be mandatory, because taxis across many of Indonesia’s regions are still able to operate effectively using conventional methods,” Mr. Serijowarno concluded.