Indonesia has set minimum and maximum tariffs for online car-hailing services, aiming to ensure comparable pricing with conventional transport providers whose drivers have complained about being undercut by their newer competitors.
Ride-hailing services such as US group Uber Technologies Inc, Southeast Asia’s Grab and Indonesia’s GO-JEK have heavily subsidised their drivers in Indonesia in order to gain market share in the country of 250 million people, analysts say.
The transport ministry said it had set a tariff range for online car-hailing services of 3,500-6,000 rupiah (8.9-15.3 baht) per kilometre for the islands of Java, Bali and Sumatra. For Kalimantan, Sulawesi, Nusa Tenggara, Maluku and Papua, the range is 3,700-6,500 rupiah per kilometre.
The regulation kicked in on July 1 and will be evaluated in the next six months, […]