Minister of Transportation (Menhub), Budi Karya Sumadi has issued a new regulation related to the online taxi, namely the Minister of Transportation Regulation No. 108 of 2017 on the Transportation of People with Public Motor Vehicles Not In Trajectory. In this rule, one of the important points set is related to the upper and lower limit rates in accordance with the zone of the region.

Secretary General of the Ministry of Transportation, Sugihardjo said, Permenhub Number 108 has been signed by the Minister of Transportation on October 24, 2017. This rule is also enacted on the same date, and is effective as of November 1, 2017.

The taxi rules are effective online as of November 1, 2017 so there is no gap, pause, and legal vacuum,” he said during a press conference at the Ministry of Transportation, Jakarta, Friday (27/10/2017).

According to Sugihardjo, the government set the upper and lower limit rates for online taxis at Permenhub 108. The goal is clear, to protect consumers. Furthermore, the tariff is divided into two regions. Region I includes Sumatra, Java, and Bali, while outside the region belongs to region II.

For region I, the upper limit rate is Rp 6,000 per kilometer (km) and the lower limit is Rp 3,000 per km. As for region II, the upper limit of Rp 6,500 per km, and Rp 3,700 per km as the lower limit.

“Before there is a new evaluation, we still use the upper and lower tariffs and if there is evaluation please, we will hear input from all parties,” Sugihardjo said.

To note, the rate of the upper and lower limits of the online taxis is already stipulated in Regulation of the Minister of Transportation No. 26 of 2017 on the Implementation of Transport of People With Public Motor Vehicles Not In Trajectory. Of course before the Supreme Court (MA) cancels 14 articles in Permenhub 26.

“If the tariff is too low, the time of the afternoon in rush hour, the rain, the application is neglected because it is too cheap, it can not be suspended, so we set reasonable tariff by paying attention to market competition,” he explained.

Sugihardjo ensures that the tariff rules of the upper and lower limits for online taxis will be effective as of November 1, 2017. “Yes, November 1, the tariff is still valid, it will be evaluated (tariff),” he said.

Meanwhile, Managing Director of Grab Indonesia, Ridzki Kramadibrata rate, the determination of the upper and lower border tariff for the two groups of this region is still quite expensive. He further expects tariffs to follow the market mechanism.

“From our side, the tariff is too high, it should be more to the market mechanism, because at certain times, the tariff can also be cheaper,” he said.