Disruptive Innovation and Course of Policy over Online Transportation in Indonesia towards Fair Business Competition

AuthorDiah Pawestri Maharani - Airin Liemanto
PositionFaculty of Law, Universitas Brawijaya, MT. Haryono St, No. 169, Malang, East Java, Indonesia - Civilization Studies Center, Universitas Brawijaya, Veteran St, Ketawanggede, Lowokwaru, Malang, East Java, Indonesia
Pages8-17
Vol
.
5
N
o
. 2
J
u
ly
, 2019
A
cademic Journal o
f
Business,
A
dministration, Law and Social Science
s
II
PCCL Pu
bl
is
h
ing, Graz-
A
ustri
a
ISS
N 2410-391
8
A
cces online at www.ii
p
ccl.or
g
8
Disruptive Innovation and Course of Polic
y
over Online Transportation in
In
onesia towar
s Fair Business Com
etition
Dia
h
Pawestri Ma
h
arani, SH. MH
.
Faculty o
f
Law,
U
niversitas Braw aya
M
T. Haryono St, No. 169, Malang,
E
ast Java,
I
ndonesia
A
irin Liemanto, SH., LL.M.
Civilization Studies Center,
U
niversitas Braw aya
Veteran St, Ketawan
gg
ede, Lowokwaru, Malan
g
,
E
ast Java,
I
ndonesia
Ab
str
a
c
t
The
f
alling number o
f
conventional transport users has sparked a con
ict between conventional
t
ransportation and online transportation groups, bringing
f
urther to the impact o
f
disruptive
i
nnovation causing more un
h
ea
l
t
h
y
b
usiness competition in
I
n
d
onesia. T
h
is paper is aime
d
to
f
ormulate the course o
f
policy over online transportation towards
f
airer business competition.
The research results indicate that the emerging existence o
f
online transportation is seen
positive despite the
f
act that this transport mode leads to an issue due to the absence o
f
regulation over its operation.
I
n case o
f
monopoly practices, the market position needs to
change into win/win assumption model. KPPU has formulated 3 aspects to realise healthier
b
usiness competition: (a) institutiona
l
aspect; (
b
) consu
l
tation an
d
coor
d
ination aspects; an
d
(c)
l
ega
l
an
d
l
egis
l
ative aspects.
I
t is expecte
d
t
h
at recommen
d
ations
b
e ac
h
ieve
d
: (1) c
l
earer
categorisation o
f
transport types; (2) improvement in conventional transportation services; (3)
partners
h
ip; an
d
(4) improvement in consumer protection.
Keywords
:
disruptive innovation, policy, online transportation, conventional transportation,
f
air business competition,
I
ndonesia.
I
ntr
odu
ct
io
n
O
nline trans
p
ortation in
I
ndonesia is
f
undamental to short distance trans
p
ortation.
I
t is easil
y
accessible, e
cient, a
ordable, and com
f
ortable.
O
nline trans
p
ortation is
ge ing
p
o
p
u
l
ar ec
l
i
p
sing t
h
e conventiona
l
trans
p
ortation (Kaa
l
an
d
Vermeu
l
en, 2017,
p
. 182). Ride-sharing Go-Jek,
f
or exam
p
le, has been activel
y
used b
y
15 million
p
eo
p
le
o
n weekl
y
basis, involving about 900,000
p
artner drivers o
f
Go-Jek and there are 100
million transactions monthl
y
(Bohang, 2017).
The
f
alling number o
f
conventional trans
p
ortation users has brought to a con
ict
b
etween conventional trans
p
ortation and online trans
p
ortation (Dewi, 2016).
I
t is
b
elieved that the emerging existence o
f
online trans
p
ortation has cut the livelihood
of
those working in conventional trans
p
ortation, drasticall
y
cu ing their revenue.
For exam
p
le, the number o
f
taxis in Jakarta accounted
f
or 27,000 units be
f
ore the
e
xistence o
f
online trans
p
ortation.
I
n 2018, there were onl
y
about 9000 units le
.
Mini buses were down to 14000 units, contrar
y
to the ca
p
acit
y
reaching 83000 units
(
Hartomo, 2018
)
p
rovided b
y
the government.
O
n the other hand, since its ince
p
tion

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