Indonesia: Government Regulates Online-Based Public Transportation Tariffs

TEMPO.CO, Jakarta  plans to regulate the lowest fares for taxi-hailing services next month. “The top and bottom fares will be [regulated],” Director General of Transportation for the Ministry of Transportation Pudji Hartanto said on Tuesday, March 14, 2017.

The Organization of Land Transportation (Organda) had earlier protested against the lack of minimum fares for taxi-hailing services. As a result, taxi-hailing services have been allowed to set far lower fares compared to those of conventional taxis. According to Pudji, the regulation is being prepared to stop the controversy, “or to avoid factors that could cause conventional taxi companies to [go out of business].”

Later in the future, local governments will set the minimum and macimum fares for taxi-hailing services. Pudji said that the government will hold talks with ride-hailing companies and cooperatives or business entities that manages the fleet before setting the tariffs. “The tariff will be set together,” Pudji said.

Pudji claimed that cooperatives or companies cooperating with ride-hailing companies have agreed to set floor and ceiling fares.

As a result, the tariffs for taxi-hailing services will be varied between regions.

Source: https://en.tempo.co/read/news/2017/03/15/056856078/Government-Regulates-Online-Based-Public-Transportation-Tariffs