Indonesian government plans to launch their own ride-sharing app to rival Go-Jek, Grab

Motorcycle taxi drivers working for ride-hailing services Go-Jek and Grab demonstrate at a protest demanding higher tariffs in Jakarta on April 21, 2018. Photo: Lambe Ojol / Instagram
Motorcycle taxi drivers working for ride-hailing services Go-Jek and Grab demonstrate at a protest demanding higher tariffs in Jakarta on April 21, 2018. Photo: Lambe Ojol / Instagram

Indonesia may be the home of the multi-billion dollar ride-sharing unicorn Go-Jek as well as the biggest market for their Singapore-based rival Grab, but the government seems keen on getting a slice of that ride-sharing pie for themselves with the announcement of plans to launch its own app.

Transportation Minister Budi Karya Sumadi first announced the idea on Saturday, though it seems to still be in its infancy.

“There are ideas from several parties, but they aren’t yet mature,” he told reporters, as quoted by Liputan 6.

A state-owned ride-sharing app would likely be operated by state-owned telecommunications firm Telkom.

“That’s possible, but we’re still in discussions,” Budi said.

The government’s plan to launch its own ride-sharing app may be another measure to stifle what is practically a duopoly on the industry by Go-Jek and Grab (following Uber’s exit from the region). Last week, the Supreme Court threw out the Transportation Ministry’s regulation on online-based transportation services — which mandated vehicle checks, regulated vehicle numbers and enforced minimum fares among others — after finding that it contradicted higher laws and regulations.

In addition to exploring the potential for a new app, the ministry is also drawing up new regulations for ride-sharing services; ones they hope will not contradict any existing laws.

Neither Go-Jek nor Grab have released any statements regarding a potential rival that would belong to the government.

Despite their own fierce rivalry, both companies seem to have bright futures in Indonesia and around Southeast Asia. Go-Jek recently officially launched operations in Vietnam with Go-Viet, while Grab, which claims to hold 65 percent of Indonesia’s ride-hailing market, is looking to invest US$250 million in the country in their race against Go-Jek.



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