Indonesia's Supreme Court removed ride-hailing tariff rules

Supreme Court has ruled that tariffs imposed by the government last month on online taxi services are illegal and take 90 days to cancel. The country's highest court said the government's policy was seen as obstructing the competition. The judge said the court ruled as a necessity to ensure the price of online taxis and traditional taxis should be comparable.

The Indonesian Ministry of Transport introduced the minimum and maximum rates for ride-sharing platform providers such as Uber, Go-Jek and Grab on July 1st. But the Supreme Court responded to a petition to cancel the tariff. The court gave the ministry 90 days to remove the rules that harmed the consumer.

"The upper and lower tariff limits do not provide fair business competition," said the judge.

The decree canceled 14 points in Regulation of the Minister of Communications No. 26/2017 on the price of online taxis, including regional quotas, vehicle requirements to be registered to the company, and restrictions on vehicles hired specifically for operation.

"Regarding the decision of the Supreme Court in this case, we will immediately review, starting November 1, 2017, the ministry regulation does not have legal force anymore, but we will be careful," said Secretary General of the Ministry of Transportation, Sugihardjo.

The managing director of Grab Indonesia and Uber Indonesia spokesman said they would review and decline to comment further. Indonesia is the main battleground in Southeast Asia for online taxi platform and traditional taxi companies that have the fourth largest population in the world and smart markets.