Uber and Grab finally set up legal entities in Indonesia

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Photo by Suara Pembaruan

JAKARTA (TheInsiderStories) – Online-based transportation services operators Grab of Malaysia and Uber of U.S., have finally established legal entities to operate their business in Indonesia. According to the Investment Coordinating Board (BKPM), Uber as well as motorcycle riding apps Go-jek have secured web portal licenses and legal entities.

On Wednesday, Minister Cooperatives and Small Medium Enterprises (SMEs) Anak Agung Gede Ngurah Puspayoga said that Grab has officially set up a Cooperative in cooperation with Indonesia’s Association of Rental Service Enterpreneurs (PRRI). The Cooperative has been approved by his office.

 “With the existence of such legal entity, I expect the controversy surrounding technology-based land transport service can be eliminated. With this Cooperative legal entity, the car owners and drivers (operating through Uber or Grab) already have legal umbrella. They’ve been able to allow their car tested (vehicle test or KIR) through the Cooperative,” said Puspayoga.

In addition, said Puspayoga, the Cooperative members of PRRI can enjoy the convenience of the government, including access to SMEs credit facilities (KUR) and the Revolving Fund Management Institution with low interest rates.

Meanwhile, Azhar Lubis, the BKPM’s Deputy Head for Investment Planning, said that there should be no more question whether Uber is a legal entity or not. He was referring to relevant ministries ruling such as the Ministry of Cooperatives and SMEs and the Ministry of Transportation.

Vice President Jusuf Kalla said that the presence of online-based transport modes is inevitable given the development in technology. However, Kalla said that these types of businesses must adhere to and comply with Indonesian laws.

“Well, they have to (obey the laws). It is a consequence for everyone to register—including motorcycle taxis, they all have to register and get tested. So this is good in terms of security reasons,” Kalla said.

The establishment of legal entities by Uber and Grab may end the stand-off between those ride-sharing applications and the existing taxi operators.

Early this week, taxi drivers from various taxi companies held protests outside the Palace and Transportation Ministry’s office, prompting the Transportation Ministry to issue recommendation to block Uber and Grab ride-sharing mobile apps.

In response to the recommendation, Minister for Communication and Information Technology Rudiantara held a coordinating meeting on Tuesday with related government ministries and institutions, including representatives from the Transportation Ministry, the Transportation Office of the DKI Jakarta provincial government, Grab and Uber.

Rudiantara said the government would find solutions over this ride-sharing mobile apps controversial issue. He stressed that the government could not hastily block those online transportation services, but noted that those online transportation services must comply with Indonesian laws and regulations in order to create level playing field. (*)

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Source: The Insiderstories
Uber and Grab finally set up legal entities in Indonesia

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