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Online Services - June 15, 2019

Ministry cancels plan to restrict discounts on online ‘ojek’ offerings

The Transportation Ministry said it would not prohibit on-line ojek (bike taxi) carrier providers from giving tariff reductions, canceling its earlier statement that it wanted to prevent reductions to keep away from “predatory pricing”.

On Thursday, Minister Budi Karya Sumadi said the ministry itself might no longer be the one that initiated such prohibition. “If a few stakeholder asked it, we would talk it,” he said.

Last month, the ministry set a tariff regulation for experience-hailing service companies. The policy, in order to be on trial for three months in 5 towns, regulated minimal and maximum tariffs for the service.
The ministry issued the regulation after a sequence of rallies by ojek drivers that demanded accelerated tariffs for their welfare.
Weeks into the trial of the tariff law, the two largest provider companies, Go-Jek and Grab, have given customers discounts amid proceedings from clients approximately the growing price lists.

Grab Indonesia president Ridzki Kramadibrata said the trip-hailing corporation was open to dialogue with the authorities over this sort of law.
“We will deliver our input, for you to be greater on how [discounts and promotions] affect drivers’ and traders’ earning. In the give up, the choice lies with the government,” he stated.

He also said the Transportation Ministry might no longer move on with the plan to limit tariff discounts because they located out that they did now not have any authority to regulate any such issue. Rather, the Business Competition Supervisory Commission (KPPU) is the one who has such authority.

“At first we had been making plans on issuing the law. However, after a dialogue with the KPPU, we learned that it’s far past our authority to accomplish that. Therefore, in the interim, we can now not adjust the discount policy,” he added.

Responding to the ministry’s try to ban discounts for journey-hailing carrier providers, Indonesian Consumers Foundation (YLKI) chairman Tulus Abadi stated discounts were no longer presupposed to be an problem as long as the discounted fee become nevertheless within the ministry’s minimum and maximum rate policy.

“The more critical factor for the authorities to modify is the protection difficulty, which is still disregarded,” Tulus said. (mai/nor/dpa)