Regulation Postponement Contradictory

KOMPAS/TOTOK WIJAYANTO

Ride-hailing motorcycle drivers wait for passengers in front of Manggarai Station, Jakarta, on Thursday (29/3). Ride-hailing services have become one of the main solutions in overcoming traffic congestion.

JAKARTA, KOMPAS — The government, both central and regional, looked unprepared to deal with the boom of ride-hailing services, both for motorcycles and automobiles.

Ride-hailing services started in Indonesia around 2014. It has since dominated the transportation business in big cities across Indonesia, and there has been pressure on the government to issue regulations to control the mode of transportation in order to protect consumers, drivers and business continuity, as well as to minimize other impacts.

The government through, the Transportation Ministry, aims to respond to the pressure by issuing Transportation Ministerial Regulation No. 108/2017 on passenger transportation with non-route motorized vehicles. This regulation refers to Law No. 22/2009 on traffic and land transportation. But, the regulation cannot apply to app-based ojek (motorcycle taxis) because motorcycles are not recognized as a mode of public transportation under the law.

Meanwhile, ride-hailing drivers and ride-hailing app companies rejected the regulation, saying it is too burdensome.

Business interests

The number of ride-hailing drivers has grown immensely, creating tight competition among the different ride-hailing companies. In order to attract consumers, the companies lower the rate even more, resulting in lower incomes for the drivers.

After seeing their incomes decrease, the ride-hailing drivers demanded the government issue a regulation to protect them. They staged the latest rally on Tuesday (27/3), as well as another rally the following day. They rejected the regulation but accepted the requirement for the ride-hailing firms to be considered transportation companies.

The government\'s policy remains unclear, but the booming online transportation has surely affected the public transportation landscape.

Transportation Ministry land transportation director general Budi Setiyadi on Friday (27/3) said based on Organization of Land Transportation Owners (Organda) data, from 36 taxi companies in Jakarta, only nine companies were left. The taxi companies were affected by both automobiles and ojek from the ride-hailing companies. “The ride-hailing services worsen the public transportation situation,” Budi said.

Regarding the regulation on online transportation, Budi said the government had issued regulations three times but they were all rejected, even though those regulations were issued after input from the public.

The ride-hailing companies, Budi said, simply only looked for profit. He said those companies continued recruiting drivers without seeing the real need. The companies’ policies affected the welfare of the drivers and the service quality for consumers.

“The fare is higher but additional services, such as surgical masks and head covers, are not available,” said ride-hailing customer Diah Wahyuningsih, 37, in South Jakarta.

KOMPAS/HERU SRI KUMORO

Residents finish using the services of a ride-hailing motorcycle driver around Palmerah Station, Jakarta, on Sunday (1/4). Even though motorcycles are not regarded as a mode of public transportation, the existence of ride-hailing services has become a necessity for citizens in their daily lives because of their low cost and convenience.

Complaints from the customers only lead to ride-hailing drivers being punished, their bonuses cut or dismissal, not improving the service system, including setting a driver quota in particular place.

In response, ride-hailing drivers established unions and voiced their aspirations to the government. They often stopped in groups on sidewalks in the capital city. Jakarta Police traffic director Sr. Comr. Halim Pagarra said the police routinely told them to disperse.

However, the crowds were too big and they could not be controlled, and their presence often intimidated others. Retaliating against a group of ride-hailing ojek drivers could end up in clash, like what happened at an underpass in Senen, Central Jakarta, on March 1.

Nila Marita, chief corporate affairs at PT Go-Jek Indonesia, said Go-Jek was a multiplatform technology service company offering on-demand services. Its relations with the drivers are considered a partnership with a partnership agreement. “The income from partner drivers and vendors contributes Rp 9.9 trillion (US$720 million) to the Indonesian economy per year. Our business model contributes to the national economy,” Nila said.

Regulation needed

Transportation observer Djoko Setijowarno said President Joko "Jokowi" Widodo\'s plan to regulate ride-hailing services and make them a transportation company was difficult to realize. Under such a difficult situation, the government should be firm in implementing Regulation No. 108/2017. Jakarta City Transportation Council law and public relations chairwoman Ellen Tangkudung agreed with Djoko.

The regulation must be implemented for ride-hailing services. The online ojek, because it is not recognized under the law, must be regulated by setting a specific target. “For example, by 2029 the public transportation in Jakarta must be in such excellent condition that motorcycles are no longer allowed to transport passengers, but only for delivering goods,” Ellen added.

(ARN/WAD/MED/DEA/ DD01/DD17/NEL)