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Towards Modern Transportation without Overriding Law

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Uber Grab Illustration
Uber Grab Illustration

By: Norman Triangga *)

Jakarta, CIDISS – Disruptive innovation phenomenon increasingly cause controversy and dilemma in Indonesia. The innovation that aims to create a new market on the ends increasingly perceived as annoying and undermine existing markets, because the customer is offered a technology or service with a cheaper price.

Recently, the influence of disruptive innovation felt, although many examples have emerged more than two decades ago. The latest example is the application-based transportation services has become the public’s attention. High public interest on the transportation services create new job opportunities for the community. However, like “buah simalakama”, the online Taxi trend on the other hand worsen the economic condition of a conventional taxi driver. This is the cause of thousands of land transport drivers staged a demonstration at Balai Kota Jakarta.

Many passengers prefer online taxi because the cost is cheaper. Even the conventional taxi driver admitted that the loss of income of up to half an alias 50% every month because of competition with the taxi service-based applications, such as Uber Taxi and GrabCar.

The existence Uber Taxi and Grabtaxi deemed to have violated Transportation Law Number 22 regarding Traffic and Road Transportation, because for vehicles that are used do not stand up under the BUMN, BUMD, and legal entity eg PT, CV and cooperatives.  Indeed, Uber and Grab only the service providers is not a transportation service provider applications. Thus the online taxi driver does not have to pay taxes like a conventional taxi companies. As a result, the rates offered by online taxi is much cheaper. This is one reason a conventional taxi cannot compete with the taxi online.

The phenomenon of online taxi should be a lesson for people and the government as policy maker. Block unwanted applications like conventional taxi driver is not the right way out of being a cheaper option for consumers, but let the app-based taxi operations without following the rules is not a step that can be justified.

We cannot denied that we need public transportation services more efficiently and effectively by using online taxi. However, as a legal state, should the application-based transportation services provider comply with applicable rules. At least it will create a fair business environment.

Do not let these innovations really impacted disruptive for the conventional industry, which ultimately will decrease employment, decrease tax revenue for the government, or even bring added value to the outside, instead of strengthening the national interest. [NT]

*) CIDISS Contributor

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