“The calculation is trying to make the taxi industry healthy, so we are not thinking about short-term but also long-term,” said Minister of Transport

The government stated that it will continue to enact the Regulation of the Minister of Transportation (Permenhub) Number 26 of 2017, one of which regulates new tariffs for online taxis since July 1. Although it has been in effect since July 1, this rule will still be evaluated within the next six months.

The evaluation of Permenhub is done because the government still gives concessions in the application of the regulation, such as the requirement of Vehicle Registration Certificate (STNK) that must use legal entity and the restriction (quota) of vehicles in each region.

In addition, setting tariff limits that have been set can also be less effective and need to be changed. “The tariffs are trying to make the taxi industry healthy, so we’re not thinking about short-term but also long-term,” said Minister of Transportation Budi Karya Sumadi during a press conference at his office on Monday (7/3).

Previously, the Ministry of Transportation has established a new regulation of online taxi fares divided into two regions. For area I (Sumatra, Java, and Bali) use the lower limit tariff of Rp 3,500 per kilometer (km) and the upper limit of Rp 6,000 per km. As for region II (Kalimantan, Nusa Tenggara, Maluku, and Papua), the lower limit tariff is Rp 3,700 per km and the upper limit is Rp 6,500 per km.

Budi said the rule was created to create equality between online taxis by conventional taxis. The new regulation on tariffs is basically to provide user protection and taxi drivers online.

Even so, the government still needs to see again whether this rule is suitable to apply or not. Therefore, the Minister of Transportation also appealed to the Regional Government (Pemda) and the Police to not take action explicitly within six months of the evaluation period. “In time, action can be given firmly,” said Budi.

Director General of Transportation Kemenhub Pudji Hartanto there are some efforts from the government for law enforcement. One of them is the supervision of new regulations in the field and sanctions in an educational and persuasive manner. “Monitor what we’ve done,” he said.

Pudji said that his office has communicated with the operators and taxi businessmen online so that the implementation of the new regulation is going well. He also appealed to the local government to supervise and provide reports regularly to Kemenhub.

In article 7 of Permenhub 26/2017 regulates administrative sanctions for special lease transactions in violation of these tariff limits. The sanctions cover 4 matters, namely written warning, administrative fines, freezing of motor vehicle surveillance cards, and the removal of supervisory cards.

According to Pudji, the final law enforcement in the form of revocation of business license and the installation of taxi applications online is conducted with the Ministry of Communication and Informatics (Kominfo). “We continue to cooperate with the Ministry of Communications and Informatics (Kominfo), because law enforcement will eventually have clear communications to block (its application),” he explained.