March 15, 2016

Indonesia to meet representative of Uber, Grab firms in wake of protest

Jakarta, (IINA) - The Indonesian Ministry of Communications will summon ride-sharing applications Uber and Grab on Tuesday following large-scale protests demanding bans on the web-based companies, Jakarta Globe reported.
Minister of Communications and Information Rudiantara said he would hold a meeting between representatives of Uber, Grab and the Transportation Ministry to settle ride-sharing app regulation.
“We will invite Grab and Uber. We will discuss this problem with the Transportation Ministry as well”, Rudiantara said on Monday.
The meeting follows a large-scale protest in the capital on Monday, which saw around 2,000 public transport drivers demand that the government bans web-based transport companies. Protestors claimed the apps fail to comply with the 2009 law on Road Traffic.
The drivers also complained the apps had caused a significant decline in customer numbers for the traditional services, resulting in a loss of income.
It is noteworthy that the Indonesian law does not currently recognize ride-sharing apps as a legitimate transportation service, with neither Uber nor Grab currently paying taxes.
Earlier, Rudiantara has received a formal letter from Transportation Minister Ignasius Jonan, requesting that the Ministry of Communications block the apps.
Rudiantara declined the request, instead suggesting the issue could be resolved "in a creative way". He said he would ask Uber and Grab to comply with current transportation regulations, including conducting roadworthy tests on each vehicle.
The apps have been a source of confusion since their introduction into the Jakarta market. In November, Ignasius issued a letter to law enforcement stating all Uber and app-based motorcycle taxi services are banned.
The move was quickly condemned by the public and other members of the government, with the president overruling it within hours.
AG/IINA

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