Government-Will-Simplify-Regulation-in-Transportation-Business

Government Will Simplify Regulation in Transportation Business

Indonesian Government through Minister of Transportation, Budi Sumadi, will simplify the regulations in order to increase the investment of transportation business in Indonesia. "Yesterday we already simplified 200 regulations in the Ministry of Transportation to be just 44 regulations, which means we want to make it easier for the investors to invest. I ask to make changes to the licensing process so it becomes easier," he said.

Except of describe the importance of the simplification of regulation, he also expressed his hope that all employees at the Directorate General of Sea Transportation of the Ministry of Transportation could improve the highly integrity and loyalty to advance the marine transportation sector. "I think it is time we have to determine that integrity is a must.The integrity is part of planning, through the integrity (it) could boost the progress of the Directorate General of Sea Transportation," he said.

In the Work Meeting of the Directorate General of Sea Transportation of the Ministry of Transportation in 2018, there was also discussion among thefocus groups which divided into 10 groups. Sumadi also warned to his staff for always keeping honesty and professionalism in order to avoid corruption.

Improving National Economic Development

The innovation in transportation business has proved to improve national economic development. The research that conducted by Demographic Institute of Faculty of Economics and Business University of Indonesia (LD FEB UI) recently concluded that Gojek’s online transport service is able to improve the economy of the drivers and Micro Small and Medium Enterprises (Usaha Mikro Kecil Menengah/UMKM) especially in Surabaya.

"From the research of 378 driver partners in Surabaya that has conducted in October-December 2017, it revealed that the application of Gojek has increased the service production in the transportation sector," said Head of LD FEB UI Turro S. Wongkaren PhD at the Media Briefing event with the themed of the Impact of Gojek on the Surabaya’s economy.

Turro said that the results of research on motorcycle driver partners showed that Gojek’s application contributed Rp192 billion per year to Surabaya’s economy through driver’s income, and Rp49 billion per year to Surabaya’s economy through the income of MSME Partners.

"Gojek has also created job opportunities that support the using of demographic bonuses and reduce the pressure on educated unemployment. "The drivers of Gojek also feel that there is an increase in welfare that is the boosting for the growth of national economiy," he said.

He explained that according to MSME partners, one of the services in Gojek, Go-Food has increased the efficiency and market share of MSME culinary, and also,has increasedthe volume of transaction of MSME, after they became the partners of Gojek.

There are 57.5 percent of MSME partners of Gojekare already increase in the volume of transaction for more than 10 percent, and 27.66 percent of MSME partners are increase in income classification. Furthermore, Gojekhas opened market access, encouraged the using of technology, and increased the business assets.

According tothe consumers of Gojek, the applicationhas enhanced the "consumer welfare" and digitally understood for various consumers. The Consumers has revealedthet the app service is good, the secure is 96 percent, and the comfortable is 99 percent. Almost all the consumers are satisfied to useGojekapplication, which is 99 percent. Turro said, as a company that operated in transportation and logistics, the existence of Gojek is the part of `disrupting force` in Indonesia.

"As with all disrupting forces, there will be unstability in the consumption and employment in the early stages, but it is expected that the unstability will not be long, so that the benefit of GO-JEK’s existence in the economy will continue to increase in the future," he said.

This research involved more than 7,500 respondents in nine major cities which are Bali, Balikpapan, Bandung, Jabodetabek, Yogyakarta, Makassar, Medan, Palembang, and Surabaya. The results of this research was intended for policy formulation. But before that, it already conducted a Forum Group Discussion (FGD).

The FGD was not only giving the input, including telling some issues. There are some issues in Gojek that are not only exist in Gojek, but also in the online transportation that require attention. "For example, It is different to deliver the goods and the person. If delivering goods or food, the worse situation is they are falling. But if taking the passenger, it is very necesaryto keep the passenger’s safety.That needs more attention," he said.

Source: Antara, Bisnis Indonesia

Disclaimer: This article is a summary of news articles obtained from a number of mass media. We are not responsible for the accuracy of data or sources of information presented by the mass media that became the reference.

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