Government does not operate online taxi application: Transportation Ministry

Government does not operate online taxi application: Transportation Ministry

Transportation Minister Budi Karya Sumadi (left) and National Police's Traffic Corps Chief Insp. Gen. Royke Lumowa (centere) talked to House Commission V Chairman Fary Djemi Francis (right) before holding a hearing on the government's policy regarding online transportation system on May 28.,2018. (ANTARA Photo/Hafidz Mubarak A)

Jakarta  (ANTARA News) - The Ministry of Transportation clarified that the government does not operate any online taxi application.

"There is no longer a problem of re-rectifying the red-plated applicator. In essence, I am not proactive in making the red-plated application, and it is better to build the regulation," Director General of Land Transportation of the Ministry of Transportation Budi Setiyadi stated in a press conference at the Ministry of Transportation, Jakarta, on Thursday.

According to him, it is impossible for the Ministry of Transportation, as a regulator, to also act as an operator.

"I do not want to combine the regulator and the operator," he noted.

However, he invited a business entity that sought to cooperate with both private and state-owned enterprise (BUMN) operators.

"If there are business entities that want to cooperate, they can see what business prospects are like," he remarked.

Setiyai revealed that the discourse on the red-plated taxi application was a proposal of alliances driven by declining income.

"They felt that these two applicators had made profit in the past. But later, these applicators were no longer profitable, and they needed a new application prepared by the government," he explained.

Setiyadi explained that the difference between online taxi application cooperation in Indonesia and South Korea is that there is no 20-percent profit sharing for companies.

So, the entire income is given to the driver, and the applicator benefits from advertising and so on.

Previously, Transportation Minister Budi Karya Sumadi revealed that it was possible to operate a red-plated taxi in South Korea.

The discourse was also mentioned, involving PT Telkom, for the provision of information technology. *** 1 *** (E002/INE)

Reporting by Juwita Trisna Rahayu


(T.SYS/A/KR-BSR/A014) 20-09-2018 17:29:59