<article>US-based Uber and Malaysia&#8217;s GrabCar have registered as legal cooperatives to stay operational in Indonesia.</article>

US-based Uber and Malaysia&#8217;s GrabCar have registered as legal cooperatives to stay operational in Indonesia.
Indonesia <a style="color: #000080;" href="http://www.depkop.go.id/">Minister of Cooperatives and small medium enterprises</a> (SMEs) AAGN Puspayoga said that he has ratified the riding apps &#8211; Malaysia&#8217;s <a style="color: #000080;" href="https://www.grab.co/id/en/car/">GrabCar</a> and US-based <a style="color: #000080;" href="http://www.uber.com/">Uber</a> as legal entities. The ratification was realised through a Rental Service Cooperative Association of Indonesian Employers (PPRI).
The move possibly signals an end to the regulatory challenges surrounding the ride-hailing app business in south-east Asia&#8217;s largest economy, whose major cities are congested and lack adequate public infrastructure.
&#8220;With the existence of such a legal entity, I expect the polemic surrounding the land transport with the application of technology- can be terminated,&#8221; Puspayoga told the representatives of the board PPRI in Jakarta.
In a parallel move, the communication and information technology ministry is also looking at coming out with a new regulation for transport apps to bring more clarity on the structure and guidelines under which these players could operate in the country.
According to Puspayoga, as cooperatives, the member-drivers of Uber and Grab can enjoy capital loan at low interest rates through the KUR and the Revolving Fund Management Institution. These credit loans can be availed to make down payment on the taxicab, he added
&#8220;As a cooperative legal entity, the transport companies meet the provisions of Law No. 22/2009 on public transport,&#8221; said Chairman of PRRI Poncho Seno.
<a style="color: #000080;" href="https://www.kominfo.go.id/">Minister for Communication and Information Technology</a> Rudiantara said his office will issue a new regulation on the electronic system operator or over-the-counter (OTT) players.
The new regulation will include a requirement for foreign players to set up legal business entities in the country in a way that creates a level playing field for existing and new players
The ruling is being currently drafted by the <a style="color: #000080;" href="http://www.dephub.go.id/">Transportation Ministry</a>, he said, adding that the regulation is expected by the end of this month and will encompass consumer protection and level-playing field issues.
On Tuesday, Rudiantara held a coordinating meeting with related parties, including representatives from the Transportation Ministry, the Transportation Office of the DKI Jakarta provincial government, Grab and Uber.
The meeting was held following the recommendation issued  by the country&#8217;s Transportation Ministry to block the OTT applications, in particular Uber and Grab; amidst mounting pressure from the existing taxi operators, who are calling for a freeze on transport apps.
Rudiantara maintained that his office cannot act &#8220;hastily&#8221; by blocking mobile applications.
He said, he has asked Grab and Uber to process permits and comply with other technical requirements issued by the Transportation Ministry and they are in the process of doing so; noting that they could form various types of entities, such as a limited liability company or even cooperatives.
Meanwhile, Patrick Waluyo, the Head of Startup Technology unit of the <a style="color: #000080;" href="http://www.kadin-indonesia.or.id/">Indonesian Chamber of Commerce and Industry</a> (Kadin) and also the founder of private equity firm <a style="color: #000080;" href="https://www.nsgroup.com/">Northstar Pacific</a>, said the regulation on digital industry cannot be implemented rigidly, like other sectors as the industry is still in infancy. Northstar has invested in popular ride-sharing application <a style="color: #000080;" href="http://www.go-jek.com/">Go-Jek</a>.
&#8220;We hope the (planned) new regulation would adjust with the development of the digital industry,&#8221; Waluyo said.
Also Read: <a style="color: #ff0000;" href="https://www.google.co.id/webhp?sourceid=chrome-instant&amp;ion=1&amp;espv=2&amp;ie=UTF-8#q=Go-Jek">Indonesia bans ride-hailing service operators including Uber, GoJek, GrabTaxi</a>

Indonesia Minister of Cooperatives and SMEs AAGN Puspayoga said that he has ratified the riding apps – Malaysia’s GrabCar and US-based Uber as legal entities.

End of standoff? GrabCar, Uber register as legal cooperatives allowing them to operate in Indonesia

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End of standoff? GrabCar, Uber register as legal cooperatives allowing them to operate in Indonesia

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