Philippines' Transportation Regulator Still Refuse to Allow Gojek Services

Looking for another option for this plan

Marsya Nabila - 21 March 2019

Gojek's submission for business operation in Philippines still not approved by Philippines' transportation regulator. They're considered to violate the rule of foreign ownership limitation.

Quoted from Nikkei Asia Review, The Land Transportation Franchising and Regulatory Board (LTFRB) refuse the reexamination of the previous result submitted by Gojek's affiliation, Velox Technology Philippines.

The company is considered to disobey the rule regarding local ownership that requires 60%. Major investor (99%) is Velox South East Asia Holdings based in Singapore.

Philippines' regulator representative, Jay Sabale said this is no different from the previous decision.

"They can't run business here[Philippines] unless they follow the regulation."

Regarding this, Gojek's representative shows his disappointment to LTFRB and on its way to find another option.

"Gojek is disappointed with LTFRB's rejection [..]. The players in Singapore, Vietnam, Thailand, and Indonesia obtain benefits from our technology everyday. However, due to this results, Philippines' drivers and customers might have to wait longer," he added.

Previously, Gojek is said to talk with local konglomerate, Ayala Corp, to penetrate the country, although there's no confirmation yet. In other countries besides Indonesia, Gojek has partnered up with locals, even adopting local branding in Vietnam and Thailand.

After the Uber shut down, Grab is practically dominating the online transportation business.

Earlier this year, Gojek has announced acquisition of a blockchain-based digital payment, worth of $72 million (over 1 billion Rupiah per today's rate).

Original article is in Indonesian, translated by Kristin Siagian

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