Regulators in Jakarta have launched a review on whether e-scooters should be allowed on bicycle lanes around capital city Jakarta and the the matter has shaken the industry to its core as rental firms reconsider business.
According to Channel News Asia, Grab Indonesia has been impacted by the uncertainty looming around the electric scooter industry as it suspended rental services this week in Jakarta. The company said the service is still available in regions outside the city.
While e-scooter rentals are being affected in Jakarta, e-scooter manufacturers have also expressed concerns about Jakarta governor Anies Baswedan's gubernatorial decree regarding the use of bicycle lanes in the capital city.
Baswedan's decree detailed that the following vehicles can only be used in the city's bicycle lanes: self-balancing hoverboards, e-bicycles, bicycles, and unicycles. The list did not clarify whether e-scooters or kick scooters were allowed.
The decree came amid mounting safety concern from the central government after it was reported that some e-scooter users rode the bicycle lanes recklessly. The issue has even reached the extent of some public facilities being damaged due to the reckless driving of the said electric vehicles.
It is unclear when a clarification will be provided by the city's government. However, Jakarta Transportation Agency chief, Syafrin Liputo said on Wednesday that the organization is still "studying how to best categorize electric scooters."
A spokesman for the Jakarta police, Yusri Yunus, further explained that the issue on determining whether an e-scooter was rented or privately owned is the root cause for the decision for all e-scooters to be banned in the meantime from leaving recreational areas.
Grab Indonesia's rental services GrabWheels has since been suspended in the city, with 1,000 e-scooters pulled out of the capital and 300 stations removed from their posts. The company said it is committed to adhering by Jakarta's rules and will impose fines on rental users who do not follow safe driving policies.
Indonesian social media users have also expressed dismay over the the decree, with some stating that e-scooter riders should not face the uncertainty brought about by only a few users who do not follow the capital's riding regulations.
The decree took effect on Monday, November 25, and will see e-scooter riders who go beyond the designated areas for the vehicles with fines of up to RP250,000 or $17.69 should they breach the policy, the Jakarta Post reported. Violators could also serve one month in jail if they refuse to follow the decree.
Since Jakarta is the capital city, some industry experts noted that other cities and rural regions around Indonesia could follow suit with a the similar decree should they also experience problems with reckless riders.
It remains to be seen whether Jakarta will come up with a more specific regulation for e-scooters to provide rental service providers and manufacturers with more breathing space to think of new strategies in preventing accidents related to the vehicle.
