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ARTICLE · 24 MAY 2016

Digital disruption and demonstrations: Indonesia regulates transport and other apps

Corrs Chambers Westgarth
Corrs Chambers Westgarth
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Corrs Chambers Westgarth

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Indonesia's e-commerce boom offers great opportunities, but app providers must be ready to adapt to increased regulation.

IndonesiaTransport

A new Transport Ministry regulation may provide greater certainty for transport app providers, but at a price.

Indonesia is mired in traffic, particularly in Greater Jakarta. Its 29 million people endure average traffic speeds of 10 kilometres per hour, with adverse consequences for productivity, the environment and quality of life.

Go-Jek

Young and technologically savvy, it isn't surprising that Indonesians were among the first smart phone users in the world to use transport apps. Go-Jek launched in Jakarta in 2010, a year before Uber's launch in San Francisco.

Like Uber, Go-Jek enables consumers to order a driver (whose mobile phone number and photo is provided) to a specified location. Unlike Uber, the service only offers motorbike rides and payment is required in cash (due to Indonesia's low rate of credit card use).

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