Indonesia transport ministry to regulate ride-hailing app discounts

Indonesia

3 min read

Jun 18, 2019

By Putu Agung Wija Putera

Despite criticism from riders and drivers, the ministry will cooperate with business competition supervisor to curb excessive discounts and prevent price wars

On July 3, the Indonesian Ministry of Transport released a circular announcing that ride-hailing companies are now prohibited from offering discounts that would lower fares below government-mandated levels.
“The ban is [intended] to maintain business sustainability and healthy business competition,” stated Director-General of Land Transport Budi Setiyadi in the circular. The ministry will report violators to the Business Competition Supervisory Board (KPPU).
The announcement comes after earlier confusion about the ministry's plans to regulate discounts and pricing in the industry. Last m...

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Edited by Matt Stanley

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