medcom.id, Jakarta: Transportation Ministry calls for ban on online taxi application such as Uber and Grab as they violate regulations.
The ministry's spokesperson JA Barata mentioned his office have sent the recommendation letter.
"We have sent request letter to Communication and Information Ministry. We ask for Uber and Grab Car to be blocked because they violate regulations in Indonesia," said Barata to Metrotvnews.com, Monday (3/14/2016).
Barata explained the applications violate several regulations including Law on Traffic and Road Transportation and Government Regulation on Public Transportation Operation.
"We sent the letter this morning. We only ask those applications to be blocked," he continued.
He underlined the case is different with online motorcycle taxi application such as Go-Jek and GrabBike. According to Barata, online motorcycle taxi has not been regulated. "Meanwhile, this kind of taxi clearly violates the law," he added.
The Jakarta Government's transportation chief Andri Yansyah mentioned online taxi violates regulations in the province such as Regional Law on Transportation and Governor Regulation on Taxi Operation. "They are illegal," he affirmed.
Andri explained public transportation company must acquire several licenses including corporation establishment license and tax registration number.
"Regular taxi drivers feel they are treated unfairly because these applications violate the regulation," he said.
Besides that, taxi company must have at least five vehicles and a taxi pool. It must also establish cooperation with car brandholder and pass feasibility test.
"After that, they will be given the permit," concluded Andri.
Uber and Grab reportedly only pay foreign investment tax as both companies are foreign brands.
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