Kadin Allows Uber and Grab Taxi to Operate in Indonesia
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The Indonesian Chamber of Commerce and Industry (Kadin) has approved the operation of online-based transportation services, such as Grab Car and Uber. However, Kadin had put out several requirements that must be fulfilled by online-based transportation services before they can operate in Indonesia.
“We, [the members of] Kadin appreciates technology that can facilitate and promote [a business]. However, its implementation must comply with the same rules,” said Adrianto Djokosoetono, Chairman of the Committee on Land Transportation of Kadin on Tuesday, March 15, 2016.
Adrianto stated that currently, there is no clear and binding regulation on transportation industry, especially to regulate companies from overseas like Uber and Grab Car. Therefore, Kadin requested the government to issue a regulation that applies to both online and offline transportation services.
In addition, said Adrianto, Kadin also requested the government to establish a clear tax system for foreign transportation companies.
Questions & Answers
Q.Which specific organisations have been given approval to operate in Indonesia?
Which specific organisations have been given approval to operate in Indonesia?
The Indonesian Chamber of Commerce and Industry (Kadin) has approved online-based transportation services such as Grab Car and Uber. They can now operate in Indonesia following Kadin's decision and provided they meet the set requirements.
Q.What is the main condition Kadin has set for these online transportation services?
What is the main condition Kadin has set for these online transportation services?
Kadin requires that the implementation of these online services must comply with the same rules as traditional transportation. This ensures a level playing field and consistent regulation across the industry for all operators.
Q.What actions has Kadin requested the government to take regarding transportation services?
What actions has Kadin requested the government to take regarding transportation services?
Kadin has requested the government to issue clear and binding regulations applicable to both online and offline transportation services. Also, they want the government to establish a specific tax system for foreign transportation companies.
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