Bali will be introducing a series of new policies that will help protect local taxi driver’s livelihoods. There will also be more strict enforcement of existing legislation.
These updates will also have a knock-on effect on tourists and the public, hopefully for the better.
Online taxi companies Grab and GoJek have agreed with the Bali Provincial Government plans to strengthen and update regulations on what is referred to as special rental transportation (SAK).
The need for change has been made apparent after members of the Bali Tourism Driver Struggle Forum (FPDP) marched to the Regional People’s Representative Council of Bali (Bali DPRD), the office of the provincial government, to make six very specific demands on the 5th January 2025.
The Bali Tourism Driver Struggle Forum wanted to see the Bali Provincial Government put a quota on the number of online taxi service providers allowed to be registered in the province, and this goes for motorcycle and car taxis.
They were also calling on the government to operate stricter regulations when it comes to vehicle rentals for tourists, for both motorcycles and cars. The third demand called on the government to oversee the creation of a standard set of rates for taxis across the province.
The fourth was to restrict taxi companies, specifically online taxi companies, enabling them to hire or take on freelance drivers with Balinese ID cards only. The fifth demand called for all tourist transportation vehicles to have local Bali Province license plates.
The sixth and final demand was to create a set of standardized skills criteria for tourist drivers coming to Bali from outside the province.
The Bali Tourism Driver Struggle Forum was concerned that not only were drivers from outside of the province moving to Bali to drive as freelance taxi drivers for these online taxi companies and ‘stealing’ the work of local drivers but that, increasingly, these drivers from other places in Indonesia were potentially breaking local laws and risking the reputation of Bali as a tourist destination.
Oftentimes, online taxi drivers are also seen to be undercutting local taxi drivers since the companies centralise the rates applied by apps like Grab and GoJek.
The Director of Grab for East Indonesia, Halim Wijaya, told reporters this week “We support the local government’s policy aimed at improving the welfare of the Balinese people, we are also ready to collaborate in creating a more inclusive online transportation ecosystem that suits local needs.”
Since the end of 2024, Bali-based taxi drivers have been raising complaints against online taxi drivers who they say they have observed operating with license plates from outside of the province, contributing to traffic jams due to ‘careless’ pick up and drop off practices, sleep overnight in parking lots, and have been picking up and dropping off passengers in ‘restricted areas’ where local taxi drivers have exclusive jurisdiction.
Wijaya told reporters that Grab Indonesia will now be making it the case that drivers who wish to register as partners, aka Grab freelance drivers, will have to be Bali residents. It has always been the case that Grab drivers must show valid documents like a KTP, SIM, SKCK, and STNK before they are allowed to drive for the app.
Wijaya shared, “To be able to register as a prospective partner in Bali, you must have a Balinese ID card or attach a Balinese domicile certificate and use a vehicle with a DK vehicle number plate.” All vehicles registered in Bali have a DK number plate, standing for Kota Denpasar.
GoJek has issued similar statements, reiterating their support for local communities in Bali. It should be noted that both Grab and GoJek are used as a means of earning income by thousands of Balinese residents already.
For tourists visiting Bali in both the short and long term, these changes won’t make too much of a difference. However, what these changes will hopefully achieve is a reduction in the tensions between local drivers and online drivers, tensions of which tourists have often been unwittingly caught in the middle.