Grab Car Indonesia announced a partnership with the Indonesian Rental Business Owners Cooperative (PRRI) after the Cooperatives and Small and Medium Enterprises Minister handed over the memorandum of incorporation for the cooperative on Wednesday, March 16, 2016.
“We decided to do this [partnership with the cooperative] based on government’s recommendation,” Grab Indonesia managing director Ridzki Kramadibrata said at the Cooperatives and SMEs Ministry Wednesday, March 16, 2016.
Ridzki added that with such partnership, the company could immediately apply for vehicle road worthiness tests (KIR). Ridzki revealed that Grab Car Indonesia would wait for instruction from the government.
In response to Jakarta Governor Basuki “Ahok” Tjahaja Purnama’s suggestion related to sticker uses, Ridzki said that his company would accept the suggestion.
“We’re happy with the suggestion, because we think that it’s suitable with our business model,” Ridzki added.
Cooperatives and Small and Medium Minister Anak Agung Gede Ngurah Puspayoga said that Grab Car Drivers had been officially protected by the law and would be able to apply for the KIR test through the cooperative.
“With such a legal basis, car rental business owners, including Grab Car, will be able to follow government regulations,” Puspayoga added.
Puspayoga revealed that members of the cooperative could even be facilitated with micro loans (KUR) from the Ministry with an interest rate of below nine percent. Puspayoga explained that the loan could be used for a car down payment.
PRRI chairman Ponco Seno said that the cooperative would help drivers to have an official organization to run their car rental business, including those who used online applications, under Law No. 22/2009 on Public Transportations.
“So, Grab Car follows government regulations to run their transportation business in Indonesia,” Ponco said, adding that the application for the cooperative establishment was filed in October 2015.
Ponco said that the cooperative crafted a program to improve members’ welfare, such as life insurances for drivers. With 5,000 members, Ponco said that the cooperative has set a workshop for 300 cars. The cooperative would also work with other garages to maintain members’ cars.