Transport Authority Plans to Restrict Uber Service in Jakarta

Just days after officially launched last Wednesday, the local Jakarta government, through the Transportation Department (Dishub), has surprisingly planned to restrict the smartphone-based Uber private car rental service provider from operating in the region. This prohibition is due to the lack of attention shown by Uber towards the official transportation regulation , as the company has yet to administer any licensing requirements.

As reported by Kompas today (18/8), Jakarta's Head of Transportation Department, Muhammad Akbar, stated that the government is currently processing the violations by this glamorous taxi service provider which had conducted trial since last June. He emphasized that Uber has not possessed any license required of what a commercial public transportation service provider should have.

“Their existence may bother the official and licensed public transportation operation. Thus, they may not operate here,” Akbar stated. He added that if Uber wants everything to be in order, the company must get through the operational licensing verification process which is valid in the region, including the Retribution License (KIR) feasibility test and other administrative necessities.

Although once had a conversation with the company, Akbar claimed that there has been no response from Uber ever since. “We had once invited Uber to talk about this. However, they've never come to respond our invitation,” Akbar added.

Besides deterring the company, Akbar also admitted that he would not take his intention to stop the services given by this San Fransisco-based startup  lightly. He said that his side is currently looking for an option to close the access to Uber’s website and app.

Regional General Manager Uber Mike Brown officially responded about this matter, "Uber's technology connects riders to the most affordable, safe and reliable ride. Our partners are all licensed, authorized transport companies, and we are fully compliant with the laws of Indonesia. In 170 cities around the world, people are embracing Uber's technology and welcoming innovation that brings greater safety for consumers, better income opportunities for drivers and more efficient and congestion reducing transportation options for communities. We look forward to having constructive discussions with government and non-government stakeholders about how our technology adds value to Indonesian consumers, drivers and communities."

Uber is seen as a potential alternative public transportation provider which may pair the drivers and their passengers through a simple mobile app. It uses the common rate of taxi services to calculates the trip’s distance and duration. In Indonesia, Uber has partnered with a number of luxurious car rentals to support its services. At the moment, Uber users may pay the services using credit card.

This prohibition issue has become another stumbling block for Uber, after the company received similar treatment in a number of cities in Germany, including Berlin and Hamburg. Uber is given an amount of time to resolve the licensing problem there. Should the company does not intend to follow the rule, the German Government would fine the drivers affiliated with Uber for 20 thousands Euros or put them in prison.

[Illustration: Shutterstock]