Govt Prepares Legal Umbrella for "Online Taxis"
SOLO, KOMPAS – The government has asked the people, especially the users of app-based ride-hailing taxi services, not to worry about the removal of the regulation on the operation of the so-called online taxis. The government ensured that it will continue to protect the public as the consumers.
Related to that, the government is currently preparing a legal umbrella that will regulate the operation of app-based public transportation.
"The people should not worry. The existing rules are still effective until November, still three months to go. So nothing has changed," Transportation Minister Budi Karya Sumadi said in Solo, Central Java, on Friday.
The Supreme Court recently annulled 14 of the 72 articles stipulated in the Transportation Ministry’s Regulation No. 26/ 2017 on the Implementation of Non-Route Public Transportation, which includes ride-hailing taxi services.
According to the minister, as the regulation is still in force, the local governments are still able to impose sanctions if drivers of app-based public transportation offer prices lower than the level set by the government.
"I, along with lawyers and transportation experts, will review and consult with the Minister of Law and Human Rights about the possibility of issuing a legal umbrella to ensure that conventional and online taxis receive equal treatment," Budi said.
The mayor of Solo municipality, FX Hadi Rudyatmo, said that the regulation was issued to address the unfair competition between online and conventional taxis. With the Supreme Court\'s decision, there could be competition again.
"The conflicts between drivers of conventional and online taxis should be avoided," Rudyatmo said, adding that there would be a monopoly in public transportation if the operation of app-based ride-hailing services was not regulated in terms of fares.
Hadi, however, said that the Solo administration would abide by the regulation until it expires in the next three months.
Input
The director of multimodal transportation at the Directorate General of Land Transportation, Cucu Mulyana, said that the government was reviewing the possibility of issuing a new regulation or to reintroduce the Transportation Ministry’s Regulation No. 32/2016, which had been replaced by Regulation No. 26/2017.
"We hope the new rules can be issued before Nov. 1 so that both passengers and drivers can be protected," Cucu said in Jakarta yesterday.
According to Cucu, in its verdict, the Supreme Court did not say whether the government would return to the previous regulation or issue a new one. "We will decide on our own. There should be a regulation that can protect all parties and maintain safety," Cucu said.
According to Cucu, Regulation No. 26/2017 has accommodated the interests of online taxis and other car rental services. "During the drafting of the Regulation No. 26/2017, we received input from five ride-hailing application providers. Regulation No. 32/2016 did not cover online taxis because such ride-hailing services had yet to exist at that time,” he said.
In addition, the rates, the cost of insurance and vehicle maintenance are already stipulated in the existing regulation. Thus, the driver\'s earnings should be higher than before. "In the event of an accident, the drivers themselves deal with the risks, not the application company. With the insurance, the risk is transferred to insurance companies," Cucu said.
Meanwhile, the chairman of the Indonesian Transportation Society expert council, Danang Parikesit, said regulators should know the business plans of the ride-hailing groups.
"By knowing their business plans, the regulator can issue the right policy and provide input to them. The application companies are particularly closed about their business plans. As the application is used to transport people, there should be a guarantee of safety," Danang said.
If the government is aware about their business plans, it can better protect the drivers. “It should be avoided. When many drivers are involved, then suddenly the application company goes bankrupt. As a result, there will be massive unemployment and the government cannot anticipate that," he said.
(RWN/ARN)