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Gov’t May Allow Ride-Hailing Services to Use Low-Cost Green Cars

The Jakarta Globe – Jakarta. The government is considering a plan to allow so-called low-cost green cars, or LCGCs, with engine capacities of less than 1,000 cubic centimeters, to be used by app-based ride-hailing services.

Ministry of Transportation Regulation No. 32 of 2016  stipulates that the services must use vehicles with engine displacement volumes of 1,300 cc or more.

“We are revising the regulation and we will announce it as soon as possible, probably this year,” Pudji Hartanto, the ministry’s director general for land transportation, told reporters on Wednesday (20/10).

Pudji added that a team of officials from the Ministry of Transportation, the Ministry of Communications and Information Technology, the Land Transportation Organization (Organda), legal experts and representatives of app-based ride-hailing services will negotiate the terms to create equal conditions for driver partners and regular taxi operators.

Misinterpretation

Pudji said drivers working for app-based ride-hailing services have misinterpreted several points in the new regulation.

Since they have opposed the regulation’s requirement that app-based ride-hailing operators must have a minimum five cars, a car-pooling service and a workshop, Pudji said it did not prevent them from establishing co-operatives with other drivers to satisfy this condition.

“We suggested that app-based ride-hailing service drivers should not take the regulation literally. There are many lines that need additional interpretation or that can still be negotiated,” he said.

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