<article>Indonesian <a style="color: #000080;" href="http://www.dephub.go.id/">Transportation Ministry</a> has officially issued regulation, which provides legal basis for the operations of application-based transportation in the country. The regulation will become effective from September 2016.</article>

Indonesian <a style="color: #000080;" href="http://www.dephub.go.id/">Transportation Ministry</a> has officially issued regulation, which provides legal basis for the operations of application-based transportation in the country. The regulation will become effective from September 2016.
The new rules -Transportation Ministry No. 32 of 2016 &#8211; have been issued for the ride-sharing application based transportation operators, which are not covered by the existing transportation regulations &#8211; a lacuna which had led to widespread protests from conventional taxi operators.
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The new ruling covers all non-fixed route public transportation such as taxis, rentals, charter, special purposes and so on. The regulation basically allows mobile application based transportation on condition that they comply with certain requirements.
According to the new regulation, an app could be done by the transportation operator or in cooperation with an application provider, which has legal entity in Indonesia. Payment system can be done through application as long as it complies with the regulations with regard to electronic transactions.
If the public transportation company such as taxis, cooperate with application provider, the application provider may not act as transportation operator, therefore the application provider may not set the tariff, recruit drivers and determine the income of drivers.
As for application providers such as <a style="color: #000080;" href="https://www.uber.com/">Uber</a> and <a style="color: #000080;" href="http://www.grab.com/">Grab</a> &#8211; the regulation mandates them to provide access to the authorities (in order to monitor their service, data of companies that cooperate with the application provider, data on all vehicles and drivers that use its application and its own address).
In addition, the regulation requires the application provider to set up legal entity in Indonesia, either in the form of limited company or cooperatives.
The application provider is also required to obtain permit to conduct non-fixed route transportation business with requirements as follows: own at least five vehicles on behalf of the company and pass regular tests, owns car pool and workshop and its drivers must have drivers licenses.
In terms of tariff, the ministry has assured that Uber and GrabCar rates need not be government approved.
Director General of Land Transportation Iskandar Pudji Hartanto said, there are various conditions that must be fulfilled should include legal status, shall have a permit for the transport of not in the stretch, where irregularities have the vehicle or the pool, providing vehicle maintenance.
&#8220;Tariff is just about agreeing to a certain price between the company and car owners. The Traffic Law states that [taxis] must have a fare meter and other requirements. We want to achieve equality,&#8221; according to Hartanto.
Commenting on the new rule, Grab said, the company is aware that some parts of the new regulation might affect the business model of app-based transportation services in the fast-growing industry.
&#8220;We are aware that some parts of the new regulation have worried our driver partners,&#8221; Ridzki Kramadibrata, Grab Indonesia managing director, said in a statement.
Also Read: <a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/indonesia-assures-conventional-and-ride-sharing-apps-can-co-exist-35140/">After massive protests, Jakarta allows Uber and Grab to operate, but with conditions </a>

Indonesia issues official regulations for ride-sharing transportation

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Indonesia issues official regulations for ride-sharing transportation

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