Ride-hailing app ban: Indonesian President rebukes transport minister

Indonesia's Minister of Transport Ignasius Jonan speaks about the missing Trigana Air flight during a news briefing in Jakarta, Indonesia, August 16, 2015, in this photo taken by Antara Foto. REUTERS/Sigid Kurniawan/Antara Foto/Files

Indonesia’s president publicly rebuked one of his cabinet ministers on Friday for a clampdown on ride-hailing services like Uber and Go-Jek, which triggered outrage on social media in a country where public transport options are limited.

Transport Minister Ignasius Jonan’s restriction, which sent shares of taxi companies soaring, will be seen as another embarrassment for President Joko Widodo, who has struggled to keep his cabinet members in line since he took office last year.

Just months ago he invited dozens of motorbike drivers employed by Go-Jek, whose lime-green colours are now ubiquitous in the traffic-clogged streets of Jakarta, to lunch at his palace.

“Don’t let the people be burdened because of regulations,” Widodo said on his official Twitter account, adding that regulations “need to be managed”.

Also Read: Indonesia bans ride-hailing service operators including Uber, GoJek, GrabTaxi

Screenshot of the twitter account of Indonesian President Joko Widodo

He said he would “immediately” summon Jonan for talks.

The Kompas newspaper reported on its website late on Thursday that Jonan’s ministry had banned the use of personal vehicles for public transport.

The minister then rowed back on Friday, saying in a statement that online ride-hailing services could continue to operate until a solution to meet public transport needs is found. He gave no further details.

Jonan is no stranger to controversy. This year he introduced a “positive equity rule” for airlines that compelled carriers, including the Indonesia affiliate of AirAsia Bhd, to bulk up on equity.

Shares of Indonesian taxi operators PT Blue Bird Tbk and PT Express Transindo Utama Tbk surged on Friday after the reported ban on online rivals.

The attempt to cripple ride-hailing services provoked an online outcry: within hours #SaveGojek was the top trending topic on Twitter in Indonesia.

“Thanks to President @Jokowi for his support to 200 thousand Go-Jek drivers and 8 million of our application users,” Go-Jek founder Nadiem Makarim said on Twitter.

As the furore grew, Transport Ministry spokesman J. A. Barata said in a hastily arranged briefing the government would be a laughing stock if it was legal for dangerous vehicles to carry the public.

“People will laugh at us,” he said.

GrabTaxi, another online rides service, said it respects regulations and is taking steps to improve safety for passengers, but is in any case not even a transport operator. “GrabCar and GrabBike are technology partners to licensed transportation companies, and do not own any vehicles nor is a transport operator,” a spokeswoman said in an email.

Also Read:

Ride-hailing app Uber gets nod to legally operate in Jakarta

Adding to Uber’s woes, Philippine court halts ride-sharing services in Manila

Reuters

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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