Uber says Governor Ahok has given them the greenlight to operate legally in Jakarta

Tech company Uber has faced numerous legal roadblocks since the it first launched its ride-hailing app service in Jakarta in August 2014. The capital’s government has long argued that the service was operating illegally here because, amongst other reasons, it did not have the proper public transport permit and that it didn’t have a local entity that paid taxes to the company. The Jakarta Police have arrested numerous Uber partner drivers, most recently when they impounded 12 Uber cars back in November.

But Uber says those roadblocks are gone and their path has been cleared by none other than Governor Basuki “Ahok” Tjahaja Purnama. 

According to a press release from the company that was released today, yesterday Ahok officially recognized Uber’s legality after the Indonesian Investment Coordinating Board (BKPM) approved the the company’s foreign investment (PMA) application.

Uber’s release quoted Ahok as saying, “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. Ride sharing, like Uber, has received positive and tremendous response from users because of its ability to provide consumers with those three pivotal factors – safe, reliable and affordable means of transportation – through the technology platform.”

According to Uber, Ahok set out a few simple requirements for Uber and other ride-sharing platforms to meet so that they could legally operate in the capital: 1. Have a legal entity (PMA) 2. Pay taxes 3. Obtain adequate insurance and 4. Ensure partner vehicles undergo regular vehicle inspection (KIR). 

The release also said that Ahok has directed Jakarta’s Transportation Department “to lift the cap on licenses for taxis and car rental companies and to work with Uber to develop a transparent process to conduct vehicle inspections and verify insurance.”

The press release also quotes Mike Brown, Uber’s Asia Pacific regional manager, thanking Ahok and admitting, “As a company we have made some mistakes in the past and apologise 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 (Transportation Department) to ensure Uber complies with all requirements.”
 



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