The East Java Provincial Government submitted a proposal for a lower limit tariff for four-wheeled transportation based on applications of Rp 3,450 per kilometer. As for the upper limit rate is released on the market mechanism.

“For the proposed price, we only propose the lower limit tariff. The reason is to protect the businessmen of online transport. Do not be like the case before, for 10 kilometers is only given the tariff of Rp 7,000, it means one kilometer is not up to Rp 1,000, “said Head of East Java Transportation Agency Wahid Wahyudi after a discussion held Tempo with the theme” Implementation of the July 1 Taxi Rules “at Redtop Hotel, Pacenongan, Central Jakarta, Tuesday, June 13, 2017.

According to Wahid, the provincial government handed the upper limit on the market mechanism because transport is not considered economic transportation, but is exclusive and its segmentation is upper middle class. “If you can not afford because the tariff is too expensive, so please choose another alternative,” he said.

Wahid said the decision was also taken to protect conventional taxi entrepreneurs to make the competition going on in the field to be balanced and healthier. “Not that we do not want to protect transport users online,” he said.

Tidak hanya usul tentang tarif, pemerintah daerah mesti mengajukan usulan kuota pengemudi yang diperbolehkan operating in its area. East Java provincial government, said Wahid, filed a quota of 3,000 drivers.

To date, 5,000 business actors transport online din East Java have applied for permits to operate to meet the quota. “Only 800 qualified applicants,” said Wahid.

Wahid said that although on July 1, 2017, the Regulation of the Minister of Transportation Number 26 Year 2017 on the Transportation of People with Public Motor Vehicles Not In Trajectory will be effectively enforced, the applicant’s registration will remain open until the provided quota is fully charged.

In the implementation later, the government will give an appeal and first warning to the violator before finally taking action by doing direct control. “Right now we give them time to meet the requirements.”

The rules that are effective on June 1, 2017 are related to periodic vehicle testing (KIR), stickers, and provision of access digital dashboard. while the regulation effective on July 1, 2017 is related to the imposition of taxes, the requirement of legalized vehicle registration, the application of upper and lower border rates, and the establishment of quotas and operational areas established by local government.