Motorcycle taxis will face tougher regulation in Indonesia

Photo credit: Grab.

Motorcycle taxis are a common sight in Indonesia’s congested cities. Two-wheelers have previously been exempt from the government’s transportation laws, but that could change soon. Startups like Grab and Go-Jek will have to adjust. Here are the key facts:

• The government and the House of Representatives have agreed to revise Indonesia’s 2009 road traffic law and to include motorcycle taxis as a form of public transport.
• Under the current regulation, they are technically illegal. But the law hasn’t been strictly enforced.
• With the rapid growth of app-based motorcycle taxi services like Grab and Go-Jek, there’s renewed interest in regulating this form of transportation.
• Once motorcycle taxis are included in the law, the government can impose minimum service and safety requirements. Right now, Grab and Go-Jek set their own safety standards.
• A similar process has already happened for app-based transportation in private cars, as offered by Uber and also Grab and Go-Jek. Declared legal a year ago, there’s still an ongoing debate between the government and industry about how to achieve compliance with the laws, and how they will be enforced.

Source: The Jakarta Globe

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