By The Jakarta Post
Asia News Network
The Philippine Land Transportation Franchising and Regulatory Board's (LTFRB) pre-accreditation committee turned down Go-Jek's application on December 20, through local transport network company (TNC) Velox Technology Philippines.
The board rejected the application on the grounds that it violated the regulation requiring Philippine individuals or entities to own 60 per cent of a TNC. Velox Technology Philippines is reportedly 99.99 per cent owned by Singaporean investors.
LTFRB pre-accreditation committee head Samuel Jardin confirmed the rejection but added that Velox could still appeal the decision.
The decision has halted the Indonesian ride-hailing company's plans to enter its fifth Asean country after expanding its operations to Singapore, Vietnam and Thailand.
Go-Jek stressed that it had not given up on its plan to enter the Philippine market. “We continue to engage positively with the LTFRB and other government agencies, as we seek to provide a much-needed transport solution for the people of the Philippines,” a Go-Jek representative said in a statement.
A spokesperson for rival company Grab, which is allowed to operate in the Philippines, said it was compliant with the regulation, as the majority of its Philippine business was locally owned.