Indonesia brings regulations for on-demand motorcycle taxis into effect

The new rules regulate minimum and maximum tariffs, passenger safety, standards of service

Indonesia started to enact online motorcycle taxi regulations in Jakarta, Bandung, Yogyakarta, Surabaya, and Makassar on Wednesday. The new rules are meant to address a number of problems relating to on-demand motorcycle taxis, which have become a massive phenomenon in Indonesian cities since the arrival of Grab and Go-Jek.

The Ministry of Transportation conducted a meeting with Gojek and Grab representatives earlier this week. In an official statement to local media, Grab Indonesia’s president director Ridzki Kramadibrata said that his company will support government efforts to implement the rules.

The biggest change affecting Go-Jek and Grab’s operations should be the new tariff limits. Both firms must now price their rides according to standards set by the authorities. It’s a move that should also please motorcycle taxi drivers who have repeatedly urged the government and ride-hailing companies to set minimum tariffs. It’s not clear yet how this will affect the fare customers pay in the long run, but prices seem to have gone up for now.

The regulation also demands extra safety features. Grab has previously introduced a number of safety features for both passengers and driver partners, including the emergency button and share my ride feature, as well as selfie verification feature. Go-Jek also upgraded its safety features before the new rules came into effect.

The new regulation will be evaluated after a week of implementation.

Editor: Nadine Freischlad