Mandatory for Go-Jek and Grab to register

New rules: Indonesian government has finalised a new regulation to require ride-hailing companies to get a licence from his ministry for providing public transport. — Reuters

JAKARTA: Indonesia is making it mandatory for Go-Jek and Grab to register as transport companies within two months to ensure they meet safety requirements as a public transport provider, potentially increasing costs and scrutiny of the ride-hailing firms.

The South-East Asian nation and some other countries have been grappling with how to regulate ride-hailing companies. The App-based companies say they should not be treated as a public transport provider since they do not own cars or employ drivers.

But Transport Minister Budi Karya Sumadi said the Indonesian government has finalised a new regulation to require ride-hailing companies to get a licence from his ministry for providing public transport. The new rules would be discussed with all stakeholders “within one or two days”, he told a news conference.