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Indonesia: Limit on App-Based Cabs in Jakarta

(Mar. 31, 2017) As of April 1, 2017, the number of app-based taxis in Indonesia’s capital area of Jakarta will be capped at three to five such vehicles per 1,000 residents. According to Elly Adriani Sinaga, the head of the Greater Jakarta Transportation Agency, this level is the appropriate one for the city, and the taxis in this category will have special stickers to distinguish them from private cars. In the last three months, drivers of the app-based taxis have been required to obtain roadworthiness certificates for the vehicles they use for business and to re-register their vehicles. (Govt to Restrict App-Based Taxis, JAKARTA POST (Mar. 30, 2017).)

The online-hailed taxi business has grown in the country, according to Sinaga, because the fares are lower than for traditional cabs. She also noted that the online taxis do not have insurance to protect them against harm to passengers. “Should anything happen to a passenger, the driver will be held responsible,” Sinaga said. (Id.)

Background

Taxis that are hailed by online apps have been controversial in Indonesia. About a year ago, on March 21, 2016, thousands of drivers of other forms of public transport, including buses and ordinary taxis, demonstrated in Jakarta, demanding a ban on companies like Uber and GrabCar that work via online apps and undercut other carriers in price. (Id.)

In late August 2016, Indonesia adopted updated rules to allow the online-based drivers to operate in the country once they join a cooperative. (Uber, Grabcar Hit the Road After Ministry Updates Regulation, JAKARTA GLOBE (Aug. 29, 2016); Constance Johnson, Indonesia: Updated Rules for Ride-Sharing Businesses, GLOBAL LEGAL MONITOR (Sept. 7, 2016).)