The Indonesia transport ministry revealed this week that Go-Jek and Grab need to register as transport businesses. The requirement, which has to be completed within the next two months is expected to increase cost and scrutiny for both ride-hailing firms.

Transport Minister Budi Karya Sumadi said in a conference that a new regulation requiring ride-hailing companies to get a license from his ministry for providing public transport has already been finalized. A license-holding company must ensure that its cars regularly pass a safety test, and its drivers have a special license for driving a public transport vehicle.

Both firms have not yet issued an official response to the matter.

Source: Reuters

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