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[UPDATED] Finally, Uber Indonesia gets green light from government

Jakarta Governor fully recognises Uber’s legality and value; Investment Coordinating Board approves company’s foreign investment application

After a year of controversy, Uber Indonesia has finally received a green light to operate in Indonesia from Basuki Tjahaja Purnama, Governor of DKI Jakarta. The ride-hailing service has also had its application for foreign investment (PMA) approved by the Indonesia Investment Coordinating Board (BKPM).
During a meeting with Provincial Heads, Governor Purnama even called for reform within the ranks of Jakarta Transportation Agency (Dishub), highlighting the urgency to eliminate corruption to ensure that technology companies such as Uber will be able to thrive.

“From my understanding, the main reason why Uber operates in Jakarta is based on the existence of huge public demand for safe, reliable and affordable means of transportation,” he said.
“I strongly support fair competition. More availability of transportation options will only bring positive and impactful benefits to the public … as more supply will build more fair competition. The parties involved in this competition will strive to provide breakthrough on the quality of their products and services,” he explained.

Governor Purnama also requested Dishub to accommodate ride-hailing apps and lift the cap on licences for taxis and car rental companies, ordering them to work with Uber to develop a transparent process to conduct vehicle inspections and to verify insurance.
In a statement, Uber admitted that it has “made some mistakes in the past and apologise[s] for that”.

“But we are also quick to learn and we fully understand the requirements laid out by the Governor and will cooperate with his office, BKPM and Dishub to ensure Uber complies with all requirements,” the statement said.

“We have a simple goal – to provide reliable transportation at the push of a button to everyone and create more economic opportunities for Indonesians using our innovative technology platform.”

Approaching provincial heads has been Uber’s go-to tactic in its effort to set up legal operations in Jakarta, Bandung and Denpasar. The approval also means that Uber’s goal to set up an office in Jakarta by early 2016 is set to come true.

Following the approval, Reuters reported that Uber expects to grow the number of its drivers from the current number of 12,000 to 100,000 by 2017.

GrabCar, a part of the GrabTaxi network which provides a similar ride-hailing service to Uber, welcomed Governor Purnama’s statement on allowing ride-sharing apps to operate in Jakarta. It also restated its commitment for compliance with Dishub’s requirements and observance of ‘local business nuances’. “We agree with the Governor’s call to raise the safety standards for Indonesian commuters, and are pleased that we have raised the bar for the industry,” said a GrabCar spokesperson in a written statement, elaborating that the company provides additional Personal Accidental Insurance for drivers and passengers, as well as background checks and training for each driver.

GrabCar operates in Indonesia under GrabTaxi, which runs its business from its Indonesia headquarters in Central Jakarta.

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