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The tariff regulation for online ride-hailing tariff will be returned to regional government. (Image via CNN Indonesia)
Regional government to regulate tariff for ride-hailing service: Budi Karya
Indonesia’s Minister of Transportation, Budi Karya Sumadi, confirmed that his Ministry is reviewing the option to return the regulation for online ride-hailing service tariffs from the central government to regional government.The confirmation came after Wednesday’s demonstration from the online rider (ojol).
Budi said that the central government is reviewing the suggestion from the ojol because it is essential to understand the regional policy in determining the tariff. Moreover, the regional government is the one most familiar with their economic conditions.
Besides, the economic strength between regions is different. Therefore, the tariff regulation cannot be made the same for all regions.
On the other hand, Budi said that the Ministry’s consideration also came from the demonstration itself. For him, a demonstration means there are unfulfilled demands between passengers, applicators, and regulators. It needs to be discussed between the passengers and applicators, while regulators only act as a “bridge” in between.
Therefore, the government will discuss the matters once more with the ojol this week and with the applicators next week.
Previously, the Transportation Ministry set the ceiling and floor tariffs for ojol following the three zones having run into effect since 1 May 2019. The floor tariff was set at Rp1,850/km and the ceiling tariff was set at Rp2,600/km.
Source: https://bit.ly/373Joi2
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