Close  

LTFRB rejects application of Indonesia’s ride-hailing firm Go-Jek

/ 04:31 PM January 11, 2019
LTFRB rejects application of Indonesia’s ride-hailing firm Go-Jek

The Go-Jek logo adorns the ride-hailing company’s iconic green helmet in this undated file photograph. (Shutterstock.com/findracadabra )

JAKARTA — The Land Transportation Franchising and Regulatory Board (LTFRB) has rejected the request from Indonesian ride-hailing company Go-Jek to operate in the country because of local regulation on corporate ownership.

The LTFRB pre-accreditation committee’s Resolution No. 096, dated December 20, 2018, disapproves Go-Jek’s application through local transport network company (TNC) Velox Technology Philippines, kompas.com reported on recently.

ADVERTISEMENT

The board rejected the application on the grounds that it violated the regulation requiring Philippine individuals or entities to own 60 percent of a TNC. Velox Technology Philippines is reportedly 99.99 percent owned by Singaporean investors.

LTFRB pre-accreditation committee head Samuel Jardin confirmed the rejection but added that Velox could still appeal the decision.

FEATURED STORIES

The decision has halted the Indonesian ride-hailing company’s plans to enter its fifth ASEAN country after expanding its operations to Singapore, Vietnam, and Thailand.

Go-Jek stressed it had not given up on its plan to enter the Philippine market.

“We continue to engage positively with the LTFRB and other government agencies, as we seek to provide a much-needed transport solution for the people of the Philippines,” a Go-Jek representative said in a statement, as quoted by techcrunch.com.

Separately, a spokesperson for rival company Grab, which is allowed to operate in the Philippines, said it was compliant with the regulation, as the majority of its Philippine business was locally owned. /kga

Read Next
LATEST STORIES
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Business, business news, commute, Corporate, Global Nation, Go-Jek, Indonesia, local news, LTFRB, nation, national news, News, Philippine news updates, ride hailing, transportation, Velox Technology
For feedback, complaints, or inquiries, contact us.



© Copyright 1997-2019 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.