New Online-based Motorcycle Taxi Fares Applied Today

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 1 Mei 2019
Category: News
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1mayMinister of Transportation Budi Karya Sumadi on Tuesday (30/4) reminded the public that Regulation of Minister of Transportation Number 12 of 2019 on the Safety and Protection of Users of Motorcycles Used for Public Interest, and Decision of Minister of Transportation Number 348 of 2019 on procedure for the determination of online-based motorcycle taxi fares will take effect on Wednesday (1/5).

“As of Wednesday (1/5), regulations concerning online-based motorcycle taxi, including procedures and fares will be applied in 5 cities representing 3 zones, such as Jakarta, Bandung, Yogyakarta, Surabaya, and Makassar,” the Minister said in Jakarta.

For the record, the fares are differentiated based on the zoning system; as for zone 1, Rp1,850 (price floor), Rp2,300 (price ceiling) per km, with minimum fares of between Rp 7,000 and Rp 10,000 will be applied in Sumatra, Java Island (exclude Greater Jakarta); zone 2 Rp2,000 (price floor), Rp 2,500 (price ceiling) per km, with minimum fares of between Rp 8,000 and Rp 10,000 will be applied in the Greater Jakarta; and zone 3 Rp2,100 (price floor), Rp2,600 (price ceiling) per km, with minimum fares of between Rp 7,000 and Rp 10,000 to be applied in Kalimantan, Sulawesi, East Nusa Tenggara, Maluku, and other regions.

The price floor, price ceiling, and minimum fares means service fee that has been subtracted from indirect cost including rental fee charged by application providers. Indirect cost is a 20 percent service fee charged by the application providers, while the remaining 80 percent of the profit is for drivers. In addition, flag fall is a fixed start fee, for a maximum distance of 4 km.

Budi asserted that the implementation of those regulations in 5 cities will be evaluated next week to obtain inputs from public responses. The 5 cities were selected as a risk mitigation and management mitigation effort in implementing regulations.

“We will see the dynamics of the implementation in those cities. If the response is good, we will impose the regulations on other regions,” he added.

According to the Minister, the regulations are expected to provide a legal umbrella for online motorcycle taxi safety issues. “We acknowledge that safety is a must for transportation users. We hope this regulation will protect the public,” he said.

In the meantime, the Ministry’s Land Transportation Director General, Budi Setyadi, explained that such regulations were formulated by involving a number of government institutions, application providers, and drivers, and hopefully can protect the safety and welfare of the drivers. He added that the Ministry will involve the Business Competition Supervisory Commission (KPPU) to supervise the regulation.

Application providers, GOJEK and Grab Indonesia, a local ride-hailing duopoly, have agreed to comply with the regulations. Chief of Public Policy and Government Relations GOJEK Indonesia Dyan Shinto Nugroho confirmed that GOJEK expressed appreciation and welcomed the implementation of Ministerial Regulation 12/2019 and Decision 348/2019.

“The provisions (in the regulation and decision) are vocal when it comes to the safety of drivers and passengers which becomes the top priority of our company. In addition, GOJEK has also added several safety features in the application, including ‘share your ride’ and ‘safety button features’,” she said adding that GOJEK also provided insurances for the drivers and passengers that are paid by the company.

Meanwhile, Ridzki Kramadibrata representing Grab Indonesia stated that a number of inputs from the company particularly safety aspect have been adopted in both regulations, such as the use of jacket, safety features, emergency button, share my rides, and an innovation called ‘drivers’ face recognition features’ that hopefully can be adopted to other industries,” Ridzki said. (Ministry of Transportation PR/ES)



Translated by : Rany Anjany Subachrum
Edited by : Muhardi/ Yuyu Mulyani

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