What are the requirements if we want to privately own a public transportation business? Are there any laws governing transportation in Indonesia, especially public transportation ownership?
DAFTAR ISI
INTISARI JAWABAN
The term 'public transportation business' in transportation regulations is known as a 'public transportation company'. Based on the regulation of the Minister for Transportation, a public transportation company is a legal entity that provides transportation services for people and/or goods with public motor vehicles.
So, can the operation of a public transportation company be carried out by a private person (individual)? What are the requirements of a public transportation service business, and how is the licensing?
Please read the review below for a further explanation.
This article is the second update of the article with the same titlewritten by Sovia Hasanah, S.H. and published on 8 February 2017, and first updated by Saufa Ata Taqiyya, S.H. on Monday, 6 December 2021.
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Legal Basis of Public Transportation Company
First of all, it is important to know that the term 'public transportation business' in the regulation of the Minister for Transportation is known as a 'public transportation company'. According to Article 1 number 4 Minister of Transportation Regulation 117/2018, a public transport company is a legal entity that provides transportation services for people and/or goods with public motor vehicles.
Furthermore, in the regulation of the Minister for Transportation, the operation of public transportation for people is divided into 2, namely:
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Since you did not specify what kind of public transportation you are asking about, therefore, in order to simplify the answer, we assume that you mean the business of non-route transportation for people a.k.a. non-route personnel transportation.
The definition of ‘Non-Route Personnel Transportation by Public Motor Vehicles’ (hereinafter referred to as Non-Route Personnel Transportation) is transportation served by public passenger cars or public buses within urban areas and/or certain areas or from one place to another, having an origin and destination but not having a fixed route and time.[1]
Taxi services are classified into regular and executive,[3] which must fulfill services such as:[4]
the service operation area is within the urban area;
not scheduled;
door-to-door service;
the destination of the trip is determined by the service user;
the amount of transportation tariffs in accordance with those listed on the taximeter equipped with a proof of payment printer or on an information technology-based application with electronic document evidence;
must meet the Minimum Service Standards set; and
bookings can be made through information technology-based applications.
Transportation for Persons with Specific Purposes
Transportation for persons with a specific purpose is transportation that serves:[5]
shuttle transportation;
residential transportation;
employee transportation;
school transportation;
charter transportation;
public rental transportation; and
special rental transportation.
Transportation for Persons for Tourism Purposes
Transportation for persons for tourism purposes is a transportation service provided for the purposes of tourism activities[6] which must fulfill the following services:[7]
transporting tourists;
transportation services to and from tourist destinations;
not entering the terminal;
payment of tariffs based on the time of use of the vehicle in accordance with the agreement between the service user and the transportation company;
may not be used other than for tourism purposes;
unscheduled; and
must meet the Minimum Service Standards set.
Transportation for Persons in Certain Areas.
Transportation for persons in certain areas is a transportation service provided to serve certain areas located on local road networks and neighborhood roads,[8] which must fulfill limited transportation services in residential areas or certain areas, and must meet the Minimum Service Standards set.[9]
Therefore, how is the licensing? Here is the review.
Licensing for the Operation of Non-Route Personnel Transportation
Basically, public transport companies must be Indonesian legal entities,[10] namely in the form of:[11]
Furthermore, public transport companies are required to have an operating license for Non-Route Personnel Transportation by Public Motor Vehicles.[12] The operating permit is then charged as non-tax state revenue or regional retribution.[13]
To obtain an operating permit, a public transport company must meet the following requirements:[14]
own at least 5 vehicles as evidenced by a Motor Vehicle Owner's Book or Vehicle Number Certificate in the name of a legal entity;[15]
own/master a vehicle storage area that is able to accommodate according to the vehicles owned; and
provide vehicle maintenance facilities (workshop/garage) as evidenced by ownership documents or cooperation agreements with other parties.
Then, according to Article 45 section (1) Minister of Transportation Regulation 117/2018, the application for a license to operate Non-Route Personnel Transportation can be in the form of:[16]
license for new applicants;
renewal of the validity period of the Service Standard Electronic Card;
changes to permit documents consisting of:
addition of vehicles;
vehicle replacement or vehicle rejuvenation; and
change of company identity; and/or
replacement of lost or damaged license documents;
opening of a company branch.
Furthermore, the application for a license to operate Non-Route Personnel Transportation as stipulated in Article 45 section (1) Minister of Transportation Regulation 117/2018 follows the mechanism stipulated in the laws and regulations regarding electronically integrated business licensing services or Online Single Submission ("OSS").[17]
For your information, the license to operate Non-Route Personnel Transportation is signed by:[18]
Director General of Land Transportation on behalf of the Minister, for:
transportation for persons for tourism purposes, charter transportation, and public rental transportation; and
transportation for persons using taxis, shuttle transportation, residential transportation, and employee transportation whose operating areas exceed 1 provincial area other than the Jakarta, Bogor, Depok, Tangerang, and Bekasi ("Jabodetabek") area; and
Head of the Jabodetabek Transportation Management Agency on behalf of the Minister, for the transportation of people using taxis, shuttle transportation, residential transportation, and employee transportation whose operating areas exceed more than 1 provincial area in the Jabodetabek area.
Then, the granting of a license to operate Non-Route Personnel Transportation is carried out through an auction or selection.[19] You can read more about the auction and selection in Article 47 to Article 50 Minister of Transportation Regulation 117/2018.
In conclusion, the implementation of Non-Route Personnel Transportation cannot be operated by private individuals (individuals), but can only be operated by public transportation companies in the form of legal entities. In addition, public transportation companies are also required to have an operating license. To obtain the operating license, public transportation companies must have at least 5 vehicles as evidenced by Motor Vehicle Owner's Book or Vehicle Number Certificate, have a vehicle storage area, and provide workshop facilities (garage). Then, the application for the operating license can be obtained through an electronically integrated business licensing service or OSS.
These are the answers we can provide, we hope you will find them useful.
