Indonesia sets minimum and maximum tariffs for on-demand motorcycle taxis

The new tariff will take effect on May 1st 2019.

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Indonesia sets minimum and maximum tariffs for on-demand motorcycle taxis

Following the recent release of regulations for Indonesia’s burgeoning on-demand motorcycle taxis, the country’s Ministry of Transportation followed up with the accompanying tariff rules that set minimum and maximum fares.

Through a press conference in his office, the director of Land Transportation at the Ministry, Budi Setiyadi, said the basic tariff for the Greater Jakarta Area is IDR 2,000 (US$0.14) per kilometre and the upper limit is IDR 2,500 (US$0.18) per kilometre.

According to Setiyadi, the tariff limits take into account the interest of driver partners, the interest of customers, and the owners of ride-hailing companies. He hopes that the new tariff limits provide protection for drivers and passengers and prevent the formation of monopolies in ride-hailing.

Tariffs vary by region. Zone One consists of Sumatra, Bali, and Java excluding the Greater Jakarta Area. The lower limit in this zone is IDR 1,850 (US$0.13) per kilometre while the upper limit is IDR 2,300 (US$0.16) per kilometre. The second zone is the Greater Jakarta Area. The third zone is Kalimantan, Sulawesi, Nusa Tenggara, Maluku Islands, and Papua, where the lower limit is IDR 2,100 (US$0.15) per kilometre while the upper limit is IDR 2,600 (US$0.18) per kilometre.

The new tariffs will take effect on May 1st, 2019.

With the new tariff regulation, ride-hailing companies are not allowed to go beyond the upper limit rate, which prevents hefty surge pricing during busy hours, traffic jams or bad weather. According to Setiyadi, the new tariff will be evaluated every three months.

A Grab Indonesia spokesperson told KrASIA it is still waiting for a copy of the written regulation from the government to be studied more closely. “This policy will have a significant impact on users with limited purchasing power. In our opinion, consumer protection agencies are more competent in providing views from the perspective of consumer interests, “said Grab Indonesia’s head of public affairs, Tri Anreianno.

Grab Indonesia told us that it has provided input to the government regarding the new regulation of on-demand motorcycle taxis and that the firm suggested an upper-limit tariff of IDR 2,000 per kilometre.

Go-Jek did not respond to KrASIA‘s request for comment.

Editor: Nadine Freischlad