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Advances in Social Sciences Research Journal – Vol. 10, No. 3
Publication Date: March 25, 2023
DOI:10.14738/assrj.103.14308.
Setiawan, M. A., Salomo, R. V., & Kurniawan, T. (2023). Governance in Application-Based (Online) Transportation Innovation
Policies in Indonesia in the Disruption Era. Advances in Social Sciences Research Journal, 10(3). 307-322.
Services for Science and Education – United Kingdom
Governance in Application-Based (Online) Transportation
Innovation Policies in Indonesia in the Disruption Era
Muhamad Ari Setiawan
Doctoral Student at Department of Public Administration,
Faculty of Administrative Sciences, Universitas Indonesia,
Kampus UI Depok, Jawa Barat 29111, Indonesia.
Roy Valiant Salomo
Department of Public Administration, Faculty of Administrative Sciences,
Universitas Indonesia, Kampus UI Depok, Jawa Barat 29111, Indonesia.
Teguh Kurniawan
Department of Public Administration, Faculty of Administrative Sciences,
Universitas Indonesia, Kampus UI Depok, Jawa Barat 29111, Indonesia.
ABSTRACT
Transportation is even considered a hero in conditions of public transportation
infrastructure that the Government has not been able to realise optimally. This is
coupled with the contribution made by this new service industry to the economy
and many new job opportunities in the informal sector that has helped reduce
underemployment in big cities. Hence the importance of strengthening governance
in application-based (online) transportation innovation policies in Indonesia in the
Era of disruption. This research uses the Management & Policy Network theory
from Klijn and Koppenjan (2000) on four indicators: policy networks, policy
formulation, intermediate outcomes and conflict management. The research
method is in a qualitative post-Potivism approach which will be analysed in depth
based on existing phenomena. The results show that governance of the Application- Based (Online) Transportation Innovation policy in Indonesia during the
Disruptive Era has not yet been formed. This is because the Management & Policy
Network has not shown significance for the reason that there are no basic
regulations and formal rules, both technically and non-technically, which
emphasise the management of Online Transportation, especially two-wheelers
because they are not public transport vehicles or public services, which have a
significant accident potential compared to other transportation. Apart from that, an
alternative is also provided by researchers, namely the importance of the strength
of collaborative leadership in increasing government commitment to making
decisions regarding online transportation needed by Indonesian people.
Keywords: Governance; Policy; Innovation; Transportation; On line
INTRODUCTION
Application or online transportation appears during the condition of the transportation system
in Indonesia has not been well organised (Widiyatmoko, 2018). Several large companies are
competing to form online application-based transportation companies, some of which are
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Advances in Social Sciences Research Journal (ASSRJ) Vol. 10, Issue 3, March-2023
Services for Science and Education – United Kingdom
Gojek, Grab and Uber. For some people, online transportation is a solution to a transportation
system that is still bad, but on the other hand, it is a problem for people who depend on
transportation services that do not rely on technology (Istianto & Maulamin, 2017). Online
transportation offers convenience, lower costs, and more guaranteed comfort and security, so
it is not surprising that many people switch from conventional modes of transportation to
online modes of transportation (Nasution, 2018).
Over time, the presence of online transportation has created social jealousy for pre-existing
conventional transportation, motorcycle taxis, taxis, buses and so on. Online transportation is
accused of causing the decline in income of conventional transportation drivers (Aziah &
Adawia, 2018). Protests, rejections, obstructions and the climax were massive demonstrations
against the presence of Gojek, Uber and Grab by conventional transportation drivers. If
previously, to obtain the desired mode of transportation, people had to obtain it manually or
could contact the call centre of the mode of transportation, and now people can easily choose
the various modes of transportation they want by using an Android-based mobile phone
(Damayanti, 2017).
Using this application, people can estimate the costs incurred for their trip. Besides, people feel
safer using the application because driver and vehicle data are clearly stated (Manueke et al.,
2018). Previously offline, the community's preferred mode of transportation has now
innovated to become online and more modern (Pribadiono, 2016). Innovation is a systematic
act of changing something (products, ideas, information, technology and others) into a resource
of high value to the target market. The nature of innovation consists of replacement, rotation,
addition, rearrangement, deletion, and reinforcement (Hamirul & Pratiwi, 2020).
It began with the presence of PT Go-Jek Indonesia in 2011, which Nadiem founded. Nadiem
created Go-Jek, an order-based modern motorcycle taxi service. Ojek, a two-wheeled
motorbike, is a very effective form of transportation. This application allows users to order
motorcycle taxis online (Sudirman et al., 2020). Gojek is known as a modern and professional
motorcycle taxi. Drivers have been equipped with Android-based mobile phones to make it
easier for drivers to connect with users and quickly get the best route for delivering passengers.
At the end of 2014, even though Uber and GrabTaxi had entered the Indonesian market, there
were almost no signs indicating that online motorcycle taxi services would become something
big this year. The on-demand transportation business is already well known, one of which is
due to the controversy over Uber's presence in Indonesia. However, the term online motorcycle
taxi was not well known then.
Recently, technology has developed rapidly, bringing many changes in all fields in Indonesia,
one of which is the transportation business. Many new companies have sprung up, and
innovations and even new technology-based business models have emerged. Regarding the
current business competition, there is domestic competition and foreign competitors,
particularly from the ASEAN Economic Community (AEC). With the emergence of various new
technologies, many companies and business people are innovating to create attractive business
models with no less excellent services.
One of the current technological developments is online motorcycle taxi services. Even though
transportation has existed for a long time, it became phenomenal when it was combined with
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Setiawan, M. A., Salomo, R. V., & Kurniawan, T. (2023). Governance in Application-Based (Online) Transportation Innovation Policies in Indonesia
in the Disruption Era. Advances in Social Sciences Research Journal, 10(3). 307-322.
URL: http://dx.doi.org/10.14738/assrj.103.14308
technology and became online-based. The presence of online transportation services, of course,
reaped much controversy. In early 2016, thousands of public transport drivers who felt their
income had decreased due to the presence of online transportation services finally held a
demonstration.
This incident did not only take place once. They also staged another demonstration a week later.
This also forced the Government to take a stand immediately. The Government also required
online vehicle drivers to change the name on their vehicle registration certificate (STNK) to the
name of a company or cooperative.
However, the Government later cancelled the regulation. At the end of 2016, conflicts arose
from the online motorcycle taxi companies themselves, such as GO-JEK, who were under
pressure from their drivers who felt their income was too small. Interestingly, towards the end
of 2016, taxi companies, which previously seemed to be against online transportation services,
changed their attitude. They finally looked at online transportation services as an opportunity
and collaborated with them. The collaboration between Blue Bird and GO-JEK demonstrates
this.
Figure 1. Survey of Online Transportation Service Users in Indonesia
Source: processed by Researchers, 2022
So that you can order Blue Bird taxi fleets through the GO-JEK application, GO-JEK's prowess is
not without harmful results. New services trying to follow the success of the three, such as Blu- Jek, TopJek, and LadyJek, are now almost invisible on the capital's streets. From their social
media accounts, it can be seen that these services are now shifting their focus to the logistics
sector. GO-JEK itself continues to innovate in order to become the leading service in the country.
The survey results from the Indonesian Internet Service Providers Association (APJII) for the
2019-quarter II/2020 period noted that Grab and Gojek are the online transportation
application services most frequently used by the public. 21.3% of respondents admit that they
often use the Grab application for commuting. Meanwhile, 19.4% of respondents said they often
use the Gojek application when travelling. Respondents who chose other online transportation
application services, such as Anterin, Bonceng, Maxim, and FastGo, ranged from 0.1% -0.3%.