Once outspoken against Uber, he’s Indonesia’s new transportation minister

Budi Karya Sumadi, Indonesia’s new minister of transportation. Photo credit : @bksbudikarya2.

Indonesia had a cabinet reshuffle yesterday. Some ministers were given new positions, while others were replaced.

Not many were surprised to hear that transportation minister Ignasius Jonan was among those asked to take his hat off. Jonan hasn’t built a favorable reputation. His missteps include banning transportation apps like Grab and Uber.

He was then chastised on Twitter by president Joko Widodo, who called Jonan to his office and immediately turned around the decision to block the apps.

The presidential intervention allowed the startups to operate, but Uber, Grab, and Indonesia’s local transportation company Go-Jek still face many regulatory hurdles.

A few months ago Sumadi was very outspoken against Uber.

Will the new guy make it easier? Jonan’s watch has undoubtedly ended, but it’s unclear whether the new person appointed to the role will go out of his way to influence policy in favor of transportation apps.

According to the Wall Street Journal, freshly appointed Budi Karya Sumadi pledged to follow the president’s directions in this matter. “Analysts expect him to loosen regulations implemented,” WSJ writes.

But just a few months ago Sumadi was very outspoken against Uber. In his old job as the head of Angkasa Pura, the company that manages Jakarta’s main airport, he tried to ban Uber from operating on airport premises.

Jakarta is notorious for some of the worst traffic conditions in the world. Photo credit: Ikhlasul Amal.

Sumadi’s said allowing in ride-hailing apps would further complicate the situation at the airport. Now, it’s pretty chaotic. Several official taxi companies compete for passengers, but informal drivers posing as taxis also hawk their services to fresh arrivals.

It’s possible Sumadi will revise his position as the new minister of transportation.

Uber isn’t going to hold what was said in the past against him.