Indonesia sets safety standards for ride-hailing services

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The Indonesian government has set up regulations for all online ride-hailing operators and will require them to provide insurance for both drivers and passengers, limit the size of their fleets and apply minimum and maximum fares.

Some of the requirements, such as the fleet and the fare restrictions, were annulled by the Supreme Court in August. However, the government has insisted that such stipulations are necessary to create a level playing field for conventional taxis and to ensure safety.

“The government certainly wants the public to avail of the best service, which provides comfort with affordable prices and safety,” Transportation Minister Budi Karya Sumadi said on October 20, adding that the revised regulation, said Budi, would take effect on November 1.

Transportation Ministry official Cucu Mulyana said the insurance was a component of the minimum and maximum fares.

“Phone credit (for ride-hailing operations), tax and insurance will be considered in the calculation of the fares,” he said.

The ministry has reiterated that the regulation on the fares is still required to protect passengers from excessive surges in fares at peak times, while a base fare is required to prevent any ride-hailing firm from engaging in unfair business practices.

The fare arrangements are unlikely to be different from the previous regulation, including the maximum fare of 6,000 rupias ($0.45) per km and base fare of 3,500 per km ($0.26) for areas such as Sumatra, Java and Bali.

Indonesia has three major ridehailing operators; Go-Jek, Uber and Grab. The three have already forged cooperation to provide fleets with conventional taxi operators, such as Bluebird and Express. There are already almost one million ride-hailing drivers in Greater Jakarta region alone.

 

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Reading Time: 1 minute

The Indonesian government has set up regulations for all online ride-hailing operators and will require them to provide insurance for both drivers and passengers, limit the size of their fleets and apply minimum and maximum fares.

Reading Time: 1 minute

The Indonesian government has set up regulations for all online ride-hailing operators and will require them to provide insurance for both drivers and passengers, limit the size of their fleets and apply minimum and maximum fares.

Some of the requirements, such as the fleet and the fare restrictions, were annulled by the Supreme Court in August. However, the government has insisted that such stipulations are necessary to create a level playing field for conventional taxis and to ensure safety.

“The government certainly wants the public to avail of the best service, which provides comfort with affordable prices and safety,” Transportation Minister Budi Karya Sumadi said on October 20, adding that the revised regulation, said Budi, would take effect on November 1.

Transportation Ministry official Cucu Mulyana said the insurance was a component of the minimum and maximum fares.

“Phone credit (for ride-hailing operations), tax and insurance will be considered in the calculation of the fares,” he said.

The ministry has reiterated that the regulation on the fares is still required to protect passengers from excessive surges in fares at peak times, while a base fare is required to prevent any ride-hailing firm from engaging in unfair business practices.

The fare arrangements are unlikely to be different from the previous regulation, including the maximum fare of 6,000 rupias ($0.45) per km and base fare of 3,500 per km ($0.26) for areas such as Sumatra, Java and Bali.

Indonesia has three major ridehailing operators; Go-Jek, Uber and Grab. The three have already forged cooperation to provide fleets with conventional taxi operators, such as Bluebird and Express. There are already almost one million ride-hailing drivers in Greater Jakarta region alone.

 

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