Indonesian Political, Business & Finance News

MSME Minister Explains Delay in Presidential Regulation for Online Taxis

| Source: ANTARA_ID Translated from Indonesian | Regulation
MSME Minister Explains Delay in Presidential Regulation for Online Taxis
Image: ANTARA_ID

Jakarta (ANTARA) - The Minister of Micro, Small, and Medium Enterprises (MSME), Maman Abdurrahman, stated that the reason the Presidential Regulation (Perpres) regarding the digital transport ecosystem, including online motorcycle taxis (ojol), has not yet been issued is that it is currently being synchronised with other related laws.

He noted that, technically, the drafting of the Presidential Regulation has been completed. However, the government is still considering several aspects of the regulation that are deemed to overlap with other regulations.

“There are indeed several political and practical considerations because there are links to several issues, such as the Road Traffic and Transport Law (UU LLAJ) and the Labour Law. Therefore, there are considerations from the Ministry of Law and several other relevant ministries because these issues are largely overlapping. Consequently, we decided to synchronise everything at once,” Maman said when met in Jakarta on Saturday.

Maman explained that at the same time, the government is also processing the revision of the Labour Law.

The government, alongside the Ministry of Manpower, the Ministry of Industry, the Ministry of Law, the State Secretariat, and several other related parties, has submitted the List of Identified Problems (DIM) for the revision of said regulation.

“A short while ago, we from the government, together with the Ministry of Manloypment, the Ministry of Women Empowerment and Child Protection (PPPA), the Ministry of Industry, the Ministry of Law, and the State Secretariat, submitted the DIM regarding the revision of the Labour Law. It has been submitted,” he said.

Next week, the government will also submit the DIM regarding the revision of the Road Traffic and Transport Law (UU LLAJ).

Maman added that the government, in collaboration with the Ministry of Transportation, has already synchronised the substance related to the regulation of the digital transport ecosystem.

“Yesterday, we and the Ministry of Transportation also signed and studied everything; we have synchronised it,” he said.

The government has chosen to align these various regulations so that the resulting policy can regulate the digital transport ecosystem more effectively and comprehensively.

This is because the regulation of the ecosystem will not only involve online taxi drivers but also MSME players connected to that ecosystem.

“Because it should be known, from the MSME Ministry and following the President’s direction, this is not just about online taxis. There are approximately 15 million MSMEs involved in this ecosystem,” said Maman.

Therefore, the government is deemed to need to consider the impact of this policy on all parties involved in the online taxi ecosystem, including MSMEs and business actors acting as merchants.

“So, I ask for your understanding that we cannot be reckless. The President’s direction to us was to think carefully about this ecosystem, especially for our MSME friends or those involved as merchants. That is why we are ensuring everything is well-maintained so that everything is synergistic,” Maman concluded.

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