Uber, Grab say they will obtain required permits before May 31

Callistasia Anggun Wijaya

thejakartapost.com, Jakarta | March 28 2016 | 5:47 PM

Two ride-hailing apps -- Uber and Grab – have expressed their readiness to fulfill all government requirements by May 31 so that they can continue their businesses within the two-month transition period as previously decided by relevant ministries.

On Thursday, the Office of the Coordinating Political, Legal and Security Affairs Minister, Transportation Ministry and Communications and Information Ministry decided that Uber and Grab could continue their businesses in the transition period before obtaining the necessary requirements by May 31.

In a press release sent by Uber Indonesia spokesperson Amy Kunrojpanya, Uber says that within the transition period it will establish partnerships with licensed car rental companies or cooperatives, ensure all partners' vehicles pass road-worthiness tests and ensure that all drivers have a driving license for public transportation (SIM A).

"We remain committed to partnering with the government to ensure the full benefits of ridesharing for riders and drivers are available to everyone," Amy said.

Uber operates in Jakarta; Bandung, West Java; Surabaya, East Java; and Bali.

Previously both Uber and Grab had been recognized as IT-based providers and not public transportation companies. The government said that their operations were "illegal" because they violated the Transportation Law.

Meanwhile, Grab also plans to finish the required licensing processes with its cooperative partners.

"We will help our partners by carrying out the liaison and communication with the government and make sure that all of the requirements are completed," managing director of Grab Indonesia Ridzki Kramadibrata said.

The company will also continue to coordinate with the Indonesian Car Rental Business Association (PPRI), he added.

Separately, Land Transportation Drivers Association (PPAD), the drivers' association which organized huge demonstration against ride-hailing applications last week, stated that it accepted the government's decision not to block the applications yet and allow the companies a transition period instead.

"We will wait until May 31 to see whether such companies comply with the government's decision. We hope for the best," PPAD spokesman Suharto said. (bbn)(+)

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Source: Uber, Grab say they will obtain required permits before May 31