Transportation Minister: App-based Taxi must be Registered and has KIR

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 22 Maret 2016
Category: News
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Menhub Jonan

Minister of Transportation Ignasius Jonan

Minister of Transportation Ignasius Jonan said that online application system used by the managements of Uber and Grab Taxi is a technology and there is nothing wrong with it.

The Minister added that the same measure can also be implemented to other commercial taxis.

However, Jonan reminded that despite the technology, taxi operations as a business must be registered.

“All public transportation must be registered for the sake of customers’ security. Moreover, they must undergo vehicle road worthiness tests (KIR) along with its standard for the safety value. That is all,” the Minister said to the reporters at the complex of Ministry of Public Works and Public Housing, Jakarta, on Tuesday (22/3) afternoon.

Jonan also asserted that public transportation must be in the form of a business entity, an association, a foundation, or a co-operative. It was intended to record the revenues and the amount of tax to be paid in accordance with the prevailing regulations.

“The regulations is similar with the conventional taxi,” Jonan said while urging Organization of Land Transportation Owners (Organda) to accommodate online application-based taxi.

“Thus, they will accommodate Uber and Grab taxi, invite them to a discussion and decide the consensus,” Jonan asked.

Regarding taxi meter, online application-based taxi like Grab and Uber taxi have different taxi meter with conventional taxi.

Jonan explained that there is upper and bottom limit on conventional taxi, and it varies in each region according to the Regional Regulations.

Meanwhile, there is no upper and bottom limit on online taxi because it is classified as a rental vehicle.

Jonan then cited an example of rental vehicles in big hotels.

“Rental vehicles have different tariff and they must not have a base of operation and drive around looking for passengers. But it is okay if customers make agreement or call, or use the apps,” Jonan explained.

Jonan also stated that he does not allow Gojek and Grabbike but lets the two modes of transport to operate.

The Minister said it all because we still have not met public transportation needs.

“But it only applies on two wheeler, taxi is different,” Jonan explained.

Meanwhile, Minister of Communication and Informatics Rudiantara said that private vehicles in Jakarta which joined mobile e-hailing application have already formed a co-opeative.

“The co-operative permit has been issued by Minister of Co-operative last week. Then the co-operative registered at the Jakarta one-stop integrated service (PTSP) by the end of the week. I also have talked with the Governor of Jakarta, and he said the important point is imposing tax at the level of playing field,” Rudiantara said at the complex of Ministry of Public Works and Public Housing, Jakarta, on Tuesday (22/3) afternoon.

Rudiantara explained that after the co-operative is ratified as a business entity on car rental, the Ministry will cooperate with the management of mobile e-hailing application. Therefore, the level playing field will materialize in the co-operative as business entity.

However, Rudiantara admitted that he does not know yet  the submission status.

Rudiantara explained that the management of mobile e-hailing application does not organize public transportation; rather, they just cooperate with business entities which organize public transportation.

The management of mobile e-hailing application cooperates with its co-operative, and it also possible to cooperate with management of other public transportations,” Rudiantara concluded. (FID/AGG/ES) (RAS/EP/YM/Naster)

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