Jakarta – The government continues to work to improve the system of online taxi operations in Indonesia. The challenge is quite heavy because the rules have been twice set, the Supreme Court (MA) has also canceled twice.

Talking casually with detikFinance some time ago, Minister of Transportation Budi Karya Sumadi opened up about the plan for managing an online taxi through the new rules.

Here’s the full interview:

Online Taxi Rules have been canceled twice by MA, what is your response?
So we are also concerned, the parties are trying to make challenge efforts against our rules.

However, two things that one side of us are trying to be as fair as possible, as a government we carry two people. We, take care online and non online. Now we are so that the playfield is the same so they can compete with each other.

We know that online transportation is indeed a necessity. Indeed, this has been a decision of the Supreme Court (MA), so we must submit to that. We have been given three months for that.

To arrange new rules, what is in the process now?
I have met with friends on land, four things that will be arranged there, one related to quota. Then the second is related to tariffs.

I think these two things will be effective to become an ideal rule. Because in addition to relating to the life rights of many drivers so that the tariff is appropriate. In accordance with our calculations, then the quota so the number of taxis that exist should be limited. If this becomes oversupply, finally the driver can’t pull.

So I appealed to them, they only thought of the large number of taxis but they did not have enough cake to share. These two things we want in our rules are our spirits. We can get good service, with a decent fee, then we don’t want the amount to be excessive.

Indeed, there are two more that will be arranged, but one is related to the number and number that will be regulated and that is also the authority of the police. So what is called an online taxi will later have a special code. Because this is related to cars and this is the authority of the Police, we give this time.

Then the other is, the limits of taxis in Jabodetabek, West Java and all kinds of things, this might be a bit of a strike. This will be finalized and this will be as a spirit, the ministerial regulation that regulates them in the third month after it is decided

This August is only yesterday at the Supreme Court, which means that this October was decided.

Can you explain which part of the online taxi rules was canceled by the MA?
Oh so many, so just look at what the rules will be. The thing that is not canceled is only four. Then the others were canceled.

The reason the rules for online taxis were rejected by MA twice?
There are several reasons for the non-disciplinary review of the Ministry of Transportation. I also think I don’t need to discuss the matter. Because the consideration is not about our problem. There is something to do with the Ministry of Cooperatives and this discussion will be very long.

So I will not talk about the matter that has been rejected. But for the four provisions that we will use and other matters relating to safety, there is one as a driver as people who use cars must comply with the law relating to traffic conditions.

The reason is, I don’t want to discuss it later, we’ll see it.

I think we as part of our country are submissive we don’t want to discuss what has been canceled. I tend to obey and use what is fulfilled that is agreed upon it will be used as a ministerial regulation.

What is your strategy so that the new online taxi rules will not be canceled by the Supreme Court?
Yes, one of them will make it as short as possible, so these two because this is related to many people, I ask to be immediately enforced. Tariffs and quotas, while the other two are because I can imagine this is right for people to have a license plate number, right?

From your perspective, how is it ideal to hold an online taxi in one country?
This online taxi business must be objective, I say, one side is a way and necessity that provides a profitable level of service. This means that he is easy to get, cheaper prices, waiting times that can be managed so many other advantages.

But so, I have to ask for commitment from an online operator. One they should not recruit taxis beyond their carrying capacity, please do business well. We agree, but don’t go beyond the carrying capacity. Actually, if the operator is obedient, with the carrying capacity, the quota does not need to exist.

But because now there is a tendency to exceed the carrying capacity, we are forced to limit. Then it is also seen in terms of how one vehicle calculatively must fulfill many things. One is that the driver must have a salary, the car must be maintained so there is a minimum tariff that must be met. If he is too low, then what happens on the one hand can all be sacrificed so he can get money.

But about safety, the tires are never replaced, the brakes are left there is no service, this is not detrimental to the community. Indeed, certain prices are in accordance with the cost of the vehicle. Because they have to fulfill these provisions in the long run.

What standard of tariff has been reviewed by the Ministry of Transportation?
Yesterday we gave the tariff Rp. 3,200 / km online taxi. For Java, but for regions like Kalimantan, then NTT is more expensive because they have to fulfill their numbers

Buka-bukaan Menhub soal Aturan Baru Taksi Online

What is the difference between the rates on Java and outside Java?
Costly 10-15%

The quota problem is how to calculate it?
We don’t really want to discuss it about the quota. Because if you discuss the problem dilemma, if it is done by the company as if we are all private cars. The best thing to do is they hire a proportional amount that is appropriate.

How do you calculate the quota?
The textbook is an easy matter. Basically, per 1 million people per area there are numbers. They must know better than that about me. But the fact that there are now some taxis cannot fulfill. Fulfilling the deposit, this must be calculated too.

Taking the example of Jakarta, how is the calculation that the number of online taxis in circulation is not excessive?
We leave the quota issue to the Regional Government to calculate. Please have a dialogue with the operator. So that they will know the exact number.

What is your focus on organizing taxis online?
Because those in space with MA we can only manage four things. Yes, there are four things that we set, but later let us know the general provisions rather than about the traffic that regulates them.

Regarding the need to make a SIM, then you have to do a vehicle repair. That already exists in the Ministry of Transportation with regard to this matter.

Have you ever compared online taxi operations in other countries?
We have highlighted that in Singapore and Korea. In Singapore, the rules are relatively more stringent. So there aren’t many online taxis.

online taxi is indeed according to your needs.

How do you see taxis online in Singapore?
Basically, in Singapore all the requirements are stricter. They must be subject to regulations in their government. They must have a license, they must have a certain number of KIR. The age of the vehicle is disciplined, if Singapore is extremely tight. So that makes consumers benefit.

How about South Korea?
If the South Koreans are just friends there. So if in Korea there is one applicator that is quite legitimate it is finally acquired by the government. So, I think it’s good for the competition between Grab and here it’s in the country, Gojek and Grab are already competing.

Do activities according to their carrying capacity. Do not let their carrying capacity 10 then they sell 15, their carrying capacity 15 they sell 30. That makes the gap between those who are looking for a living is not enough.

Buka-bukaan Menhub soal Aturan Baru Taksi Online

Can the pattern in Korea be imitated by Indonesia?
Korea is the first one and they ventured to hire one side that was endorsed by the government. So that there are grabs and transportation that the government has one competition. Actually there is no competition here because they are two.

All that remains is to be discussed between the two of them, on the one hand so that they fulfill the level of service. But the rates don’t overdo it too.

Almost the same as Singapore, basically they as online taxis must follow the rules of business, but the name of safety there is also a must.

If online taxis in Korea and Singapore need the KIR test, what about Indonesia?
Well, right, you want to try but claim the car has its own, this can’t be. Now those who speak are one market law. May they never be KIR, may they never wash their cars, but later the people will judge them.

That they are not feasible, the suspension is not clear, people will run away in short, they will benefit when long term they will run away. Now that’s what I emphasize to online transportation, we can’t see for a moment.

People can judge, the car whose suspension is still good. Where the suspension is bad, from the suspension, the engine is not taken care of, it must also not be taken care of. Now this is what will backfire for them. We don’t want it, we want to keep online, keep the quality, the credibility is the good car.

What car is maintained the quality is maintained.

When will the revision review come out?
End of October.

Who are the parties you are talking to to arrange this rule?
We invite experts, lecturers from leading universities. We invited from UI from ITB, from UGM from UNDIP from ITS. Then from UNHAS, then we are involved in MTI and the transportation experts in Indonesia we talk to. Associations in online also include online companies we also talk to.