The Government Applies Discretion to Control Online Transportation

Safety, rate, suspension, and partnership are the aspects included in the regulation

Prayogo Ryza - 15 January 2019

The Indonesian government will issue a regulation regarding two-wheeler as public transportation. Particularly, two-wheeler will be the main focus. The regulation includes safety, rate, suspension, and partnership aspects.

The government is said to perform discretion to boost action, because the two-wheeler is not included in public transportation under Law No. 22 in 2009 of Road Traffic and Transportation.

Discretion is a term for actions determined by government officials (related to the regulation issue) to solve concrete problems in government administration. The legal based on Law No. 30 in 2014. Discretion in the government is common. It usually applied to overcome crucial issue immediately.

In article 22 verse 2 under Law No. 30 in 2014 is explained that every discretion taken has several objectives, such as launching the government administration, occupying the legal vacuum, providing legal certainty, and overcome government stagnation to provide benefits and public interests.

Due to the two-wheeler wasn't regulated as part of public transportation, it's getting difficult. In fact, their communities are becoming essential part of mobility.

Through the discretion, the government is trying to occupy the regulation vacuum. The rules is in discussion, the government has been actively communicating with related parties for feedback since early 2019.

"To date, it's as if online transportation weren't protected. In this discretion, I decided to give one thing for them as a guarantee," Budi Karya, Minister of Transportation said, quoted from Tirto.

Competition and welfare of Two-wheeler transportation

The regulation to be issued by the government of two-wheeler online transportation will adjust many aspects. Some important issues are highlighted, including rate management to avoid price wars. It's currently issued by app or service providers, both are considered too low for the driver partners.

Another aspect is to be adjusted related to safety, including trip insurance. The regulation is expected to solve the current polemics while increasing driver's welfare and protecting consumers.

Original article is in Indonesian, translated by Kristin Siagian

Are you sure to continue this transaction?
processing your transaction....
Transaction Failed
Try Again is a news portal for startup and technology innovation. You can be a part of`s startup community and innovation members, download our tech research and statistic reports, and engage with our innovation community.

Sign up for our

Subscribe Newsletter