Mixed Model Regulation Concepts: New Policy Perspective for Online Transportation Industry in Indonesia

Mukti Fajar Nur Dewata, Dyah Mutiarin and Reni Budi Setianingrum
Universitas Muhammadiyah Yogyakarta

Abstract

Indonesia's Government and others have not found feasible policies in regulating the business of conventional transportation and integrated online transportation. This study aims to examine: (1) Legal concepts of business that interfere with innovation in legal competition in the field of transportation; and (2) management model of online transportation industry governance. This research method uses a type of normative legal research that uses laws, theories, and legal principles through library research. To complete the data, this research will also conduct interviews with experts and government stakeholders. The findings of this study are: First, the disruptive innovations in the online transportation business do not conflict with the principles of business competition law, but it needs to be arranged differently. Self-regulation made by business people is an appropriate legal concept because it is more effective and formulated by business actors themselves. Also, the government uses state law for monopoly and causes unfair competition. Second, the online transportation policy model requests a combination of self-regulation and strict regulatory policies. The mixture will provide protection against unhealthy businesses, providing consumer protection and safety as well as security providers in online transportation business providers.


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