Tag: Nadiem Makarim

App-based Transport Ban Shows Lack of Coordination Under Jokowi’s Leadership

Indriaty Octarina was enraged when she found out that her favorite mode of transport, the popular Uber-style motorcycle taxi service Go-Jek, was declared illegal by Indonesian transport minister Ignasius Jonan on Friday last week.

As a worker who must go through the traffic hell from her home to office located in the Jakarta Stock Exchange building in South Jakarta every day, the news struck her like a thunderbolt, she said.

“I use Go-Jek every day because it is faster and cheaper to go anywhere with it. Taxi fare is just too expensive, and public transportation is just not safe or comfortable. What should we do now?” she asked The Parrot.

The news that Jonan had announced a ban on app-based transportation in any form – including Go-Jek, Grabbike and Uber – shocked not only Indriaty but most of the Indonesian public.  Although the minister indicated that the ban had legal standing, nobody could understand why a ban was suddenly put in place on ojeks, or private motorcycles being used as public transportation, after millions of people, especially those in big cities, have used them for years.

But the new app-based transport, especially Go-Jek, with its vetted and uniformed operators, who are trained to be polite, is cutting dramatically into traditional taxi and motorcycle services.

“Calling on the National Police and regional governments to enforce the law on public transportation, under which the massively popular vehicle-hailing services like Uber and Go-Jek strictly speaking are illegal,” Jonan’s directive to the police said in announcing the ban.

In this case, the popularity of the app-based services won out in dramatic fashion.  Users and supporters vented their anger through social media and within hours the uproar had become so loud that Jokowi had to intervene. A few hours after Jonan announced the ban, the president reversed it.

“Don’t let the people be burdened because of regulations,” Joko said on his official Twitter account, adding that regulations “need to be managed” and that he would “immediately” summon Jonan for talks.

“Innovation by the younger generation should not be restrained and applications such as Go-Jek exist because they are needed by society,” Jokowi told reporters at the state palace only a few hours after the ban.

“I don’t know what has just happened. Such a strange day,” Indriaty Octarina the Go-Jek user told The Parrot.

Go-Jek’s founder and CEO Nadiem Makarim—one of the business people in Jokowi ‘s entourage during his recent visit to the United States – expressed his gratitude, calling it a victory for the democratic process and the people.

“Dear GO-JEK users, President ‘Jokowi’ just answered our prayers by cancelling the Transportation Minister’s circular regarding the prohibition of app-based ojek and online taxi services. Thank you very much for your support on social media,” Nadiem wrote in an e-mail sent to all Go-jek users, saying that he was touched by the enormous public support.

Nadiem added that the withdrawal also guaranteed the welfare of the families of around 200,000 drivers in several provinces in Indonesia who make a living as Go-Jek operators.

Go-Jek isn’t Alone

Nonetheless, the confusion regarding changes in public policy is not new under the Jokowi administration, with political analysts often saying it shows evidence of lack of coordination and that Joko is “unable to fully control his ministers.”

Earlier in January this year, for instance, Manpower Minister Muhammad Hanif Dhakiri announced that the government would require existing and prospective foreign workers to pass Indonesian language tests to be eligible for a work permit, a move seen by many foreign investors as protectionist.

The language proficiency requirement is mentioned in Manpower Minister Regulation No. 12/2013 on procedures for the employment of foreign workers. The regulation stipulates a number of requirements for foreign workers to obtain work permits, including the ability to communicate in Indonesian. However, the regulation excludes commissioners, directors and those in temporary employment.

However the plan was scratched in early March after Korean, Japanese, American and European business chambers objected to the latest manifestation economic nationalism from Indonesia’s establishment.

The plan was regarded as putting barriers in place for foreign investment at the same time the president has repeatedly said he wants to deregulate and speed up the process for obtaining permits to boost investment amid three years of declining pace in economic growth.

The previous coordinating minister for economics Sofyan Djalil told media in April that the business community basically “don’t want and don’t need” this kind of regulatory cleanup, raising more questions whether Joko Widodo is really in charge. It has led to a constant battle on the president’s part to try to keep the deregulation process moving.  Go-Jek and its app-based partners are just one of many examples of the difficulty.

Digital style motorcycle service “Go-Jek” thrives despite resistance from traditional competitors

When Indonesian President Joko Widodo goes to the US on Oct. 25 for a state visit, among the prominent figures and business people in his entourage will be Nadiem Makarim, a young Harvard graduate and originator of what might be called the Uber of the motorcycle world.

Makarim has been described as the personification of the young professional that Jokowi, as the president is known, is looking for to boost the country’s creativity sector.  The 31-year-old Makarim in 2011 founded Go-Jek,  a play on the Indonesian word ojek, or motorcycle taxi. The service has become wildly popular on Jakarta’s traffic-choked streets.

Go-Jek won the Global Entrepreneurship Program Indonesia in 2011. The  young entrepreneur was also selected by the Geneva-based New Cities Foundation as one of the world’s nine outstanding urban innovators in 2015. He has spoken to hundreds of global urban leaders about their success in tackling some of the greatest current urban challenges.

While motorcycle taxis are ubiquitous in Jakarta, Makarim combined a penchant for marketing genius with up-to-date technology, dressing his drivers in smart green jackets and helmets and using Android and iOS apps so that their customers can track them as Uber does.

Customers can order a Go-Jek to either transport them to their destinations or stay home and ask the driver to deliver goods, order food or even shop for them. As with Uber in other more advanced metropolitan areas, users can track the driver’s location via a global positioning system (GPS), which tells them exactly how long it will take for the driver to arrive.

Go-Jek’s popularity has been rising on the slogan “An ojek for every need.” After launching “Go-Box” which serves customers with various sizes of trucks for transportation, it also introduced “Go-Glam” for beauty care services, “Go-Clean” for cleaning services, and “Go-Massage” which offers a private masseuse delivered to customers’ homes.

That has raised antagonism of more traditional ojek riders, much as traditional taxi drivers in other cities have grown angry from the competition from Uber, which is cheaper, trackable via internet, and whose drivers are supposed to be guaranteed to be polite. Go-Jek users need not bargain as the company sets a fixed price for each kilometer traveled. It also offers a flat tariff during non-rush hour of 15,000 Rupiah (US$1.10) for maximum 25 kilometers.

Traditional ojek cyclists don’t undergo a vetting process and aren’t registered. They take their payments in cash and prices are a matter of negotiation that can become heated and annoying.  By contrast, Go-Jek drivers register, undergo basic vetting, are trained to be polite, and offer passengers helmets and facemasks that are guaranteed to be clean, unlike traditional ojek drivers. That has created fierce competition from traditional ojek cyclists who wait for customers on the streets.

Some have openly attacked Go-Jek drivers when they are about to enter their territory. Media reports have also shown traditional ojek putting up banners saying “Go-Jek drivers are not welcome here.”  That has forced Go-Jek drivers to stay undercover to avoid threats and assaults.

Makarim has publicly stated that the company does not aim to compete with local ojek drivers, but to help them develop instead. “We welcome you to join Go-Jek anytime,” he said to traditional ojek.

Go-Jek says it has signed up more than 2,500 participants in Jakarta with more than 35,000 nationwide.

In addition to its consumer appeal, Go-Jek is regarded as a quick, if partial solution to the dreaded Jakarta traffic. Despite previous warnings from transportation experts that gridlock would become total in 2014, the city has failed to take swift action to avoid it despite some efforts to put a light rail system in place. The construction of the rail system, the country’s first, along with several elevated roadways, has exacerbated the problem, a major reason Go-Jek is getting a warm welcome.

According to the Jakarta government, private vehicles grew at a rate of 11 percent in 2013 while road growth was almost stagnant at only 0.01 per cent. There are more than 38 million private vehicles operating in Jakarta, including 26.1 million motorcycles, 5.3 million cars, 1.3 million buses and 6.1 million trucks.

Following its success, the company has recently spread their business to other big cities in the country including Bandung, Bali, Surabaya and Makassar. The company also said that its drivers have been equipped with medical and accident insurance.