#Asia Indonesian govt to demand ride-hailing startups to hand over driver data


The Transportation Ministry expects to monitor the companies’ driver-partners’ compliance with regulation


Seems like the fun is over for Indonesian ride-hailing startups, as last week saw Go-Jek closing a US$550 million investment while Grab is reported to raise US$600 million following the merger between Uber China and Didi.

On Tuesday, the Indonesian government through the Ministry of Transportation cited plan to require ride-hailing startups to hand-over driver data to the Ministry so that it will be able to monitor vehicles that have not undergone roadworthy tests and drivers who have not obtained required licenses, as stated in the Transportation Ministerial Regulation No. 32/2016.

“Before October this year, we will arrange the regulation to access data from app-based taxi companies so we will know how many cars operate under those companies,” said Ahmad Yani, the ministry’s sub-directorate of people’s transportation head, as reported by The Jakarta Post.

The new regulation itself will be implemented on October 1; after it, in order to secure licenses to operate, ride-hailing startups will need to apply directly to the Ministry instead of the transportation agency.

Also Read: Will Grab, like CEO Anthony Tan said, make Uber lose again in SEA?

The news came following newly appointed Minister of Transportation Budi Karya Semadi’s plan to summon ride-hailing startups.

In the past weeks, the government had also begun raiding cars used by Go-Car, GrabCar, and Uber driver-partners again after months of absence.

Semadi stated that he had received reports that many of the cars used by GrabCar, Go-Car, and Uber driver partners had not been undergoing road-worthiness test, despite contradictory report stated by a government official as reported by Kompas.

“… A total 1,450 vehicles [that have applied for license], about 1,296 of online-based taxi services had been given permission to operate,” said Hemi Pramuraharjo, Head of Communications and Public Information Bureau, Ministry of Transportation.

Yani himself acknowledged that car owners tend to refuse their cars to undergo road worthiness test, as the cars will be marked by a test plate, test sticker and rental vehicle sticker. The markings are believed to negatively affect the cars’ pricing in secondhand market, as it is a sign that the cars have been used for rental purpose prior to being sold.

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