ISSN 465-009 Surakarta Law And Society Journal E-ISSN 456-890

THE SINERGY OF CONVENTIONAL AND ONLINE TRANSPORTATION

Ashinta Sekar Bidari

Faculty of Law Surakarta University
[Link]@[Link]

Abstract

Technological and information developments have brought changes to the economy. The
community begins to innovate in business by utilizing internet media. Information and
communication technology has experienced rapid development over time. Technology is one of the
factors that can change the social dynamics of society. With the emergence of a variety of new
technologies, many companies and businesses are being innovated to create attractive business
models with services that are no less amazing. One of the current technological developments is in
online motorcycle taxi services. With the presence of online transportation, there must be a good
synergy with conventional transportation. Good synergy is expected to create healthy competition
between the two modes of transportation.
Keywords: Synergy, Conventional Transportation, Online Transportation

INTRODUCTION Business transactions with electronic

Interesting to study healthy competi- media are known as Electronic Commerce (E-
tion between conventional trans-portation Commerce). The definition of E-Commerce is
and online-based transportation in Indonesia. as follows:
We must admit that this online-based 1. E-commerce is a new method for perfor-
transportation business is a new breakthrough ming commercial activities. Daily-increase
in the field of transportation. Rapid techno- access to internet from one side and low
logical development cannot be avoided by the level of costs for commercial activities
community. Therefore, this online transporta- through internet on the other could make
tion business must be welcomed and conti- it the most acceptable method for
nued to be developed. The presence of online commercial transactions. With a glance to
transportation brings a very positive air for the short-term history of e-commerce, we may
community in terms of service, in terms of notice that this phenomenon has a wide
price, in terms of time and creating jobs for growth due to the simultaneous and great
the wider community. However, on the other welcome of companies and customers.1
hand, the existence of conventional transpor- 2. Electronic commerce or e-commerce for a
tation actors is increasingly eroded. The wide range of online business activities for
controversy between the two transports was products and services. It also studies "any
triggered because since the presence of form of business transactions in which the
online transportation has caused business parties interact electronically rather than
competition between online and conventional
transportation to be un-healthy Navid Nikakthar and Yang Jianzheng, 2012, ‘Role of E-
1

commerce in Supplay chain Management to minimize costs’,

African Journal of Business Mangement, Volume 6, p. 5673

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Vol. 1 No. 1, August 2018

by physical exchanges or direct physical conventional transportation and online

contact."2 transportation related to fair business
Technological developments in the competition.
field of transportation if this is not addressed
DISCUSSION
wisely by the government will trigger riots
The development of the digital
between online transportation and
industry continues to accelerate, including in
conventional transportation. In fact, the
the realm of online-based transportation. The
community has already been comfortable
presence of transpor-tation5 application based
using online-based transportation modes.
online in Indonesia, especially in big cities,
Stopping the operation of online
provides many benefits for users of
transportation will certainly harm the
transportation services. based transportation
community. However, letting them keep
Online this seems to be the middle of the
operating will certainly harm conventional
condition of urban mobility that has high
transportation that has long been operating.
intensity among road congestion. We do not
The government is indeed forced to realize
deny that transportation online is6an option
good synergy between the two modes of
because of its timely and affordable costs.
transportation, one of which is by making
According to Alvin Toffler, humans
policies.
have now entered an era called the third wave
Based on the title and issues raised in
(third wave). This era is also commonly called
the writing of this article, this research is an
the era of industrialization or the information
empirical or socio-legal research3 and is
age.7 Doing business with information
qualitative descriptive4. Data sources used are
technology makes open market oppor-
primary data sources and secondary data
tunities wider. Doing business through the
sources. Data collection methods used by the
internet will make it easier to promote
author of the interview method (interview),
products, find consumers, customers. There
observation and literature study. Methods of
interviews and observations were conducted
5
Transportation or transportation is a very important area
at the Jakarta Business Competition of activity in the lives of Indonesian people. Recognizing the
importance of the role of transportation, traffic and road
Supervisory Commission. Based on the transportation must be arranged in a national transportation
system in an integrated manner and able to realize the
background data, the authors are interested in
availability of transportation services that are in accordance
raising the issue of synergy barriers between with the traffic needs and transportation services that are
orderly, comfortable, fast, smooth and low-cost. Abdulkadir
Muhammad, 1998, Hukum Pengangkutan Niaga, Bandung:
2
Nisha Chanana and Sangeeta Goele, 'Future of E- Citra Aditya Bakti, p. 7
Commerce in India', 2012, International Journal of Computing & 6
Transportation can be interpreted as the transfer of
Business Research, Proceedings of I-Society goods or people from one place to another with the help of
3
Research that is socio-legal research puts the law as a using a vehicle. Online is a network that is connected to the
social phenomenon, in this case the law is viewed only from the internet. Andika Wijaya, Aspek Hukum Bisnis Transportasi
outside, so that socio-legal research legal research is always Online, 2016, Jakarta: Sinar Grafika, p.9
related to the problem social 7
Amar Ahmad, June 2012, ‘Perkembangan Teknologi
4
Descriptive research is intended to provide as accurate Komunikasi dan Informasi : Akar Revolusi dan Berbagai
data as possible about humans, circumstances or other Standarnya’, Tablighic Da'wah Jurnal, Volume 13 Number 1, p .
symptoms. 139

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are factors that influence business The presence of online-based

development, namely: increasing business transportation causes conflict10 in various
complexity that is influenced by the influence regions with conventional transportation.
of the international economy, global business Issues that often arise in the controversy over
competition, IT develop-ment and growth, the emergence of online transportation and
time utilization, social considerations and conventional transpo-rtation are the
information techno-logy capacity that are occurrence of unhealthy competition11
influenced by: service capacity information between online transportation and conven-
needs, interaction capacity in computer tional transportation. Definition of unfair
network, data access speed capacity.8 business competition based on Law No. 5 of
Electronic transactions according to Article 1 1999 concerning Prohibition of Monopolistic
of Law Number 11 Year 2008 concerning Practices and Unfair Business Competition in
Information and Electronic Transactions are Article 1 point 6 Unfair business competition
legal actions carried out using computers, is competition between business actors in
computer networks and or other electronic carrying out production activities and / or
media. marketing of goods or services carried out by
There are several key factors that dishonest or unlawful or hinder business
support the growth of thetransportation competition. Some of the existing
service industry ride sharing. One of the key conventional transportation business actors
factors that support is the existence of early include Gojek12, Uber13 and Grab.
adopters. Early adopter is a group in society
10
Conflict needs to be interpreted as a way or means to
that is the opinion leader in the use of a
change society. Openness and seriousness in breaking down
technology.9 The growth of the ride sharing the root causes of conflict and good and open communication
between interested parties is a way of handling conflicts that
industry on online transportation cannot be need to be put forward. Sukardi, ‘Penanganan Konflik Sosial
Dengan Pendekatan Keadilan Restoratif’, 2016 Nomor 1, Jurnal
avoided. The difference between online and Hukum dan Pembangunan 46, p. 76-77
11
Unhealthy competition is competition between unequal
conventional transportation services is online
business actors, there is dishonesty from business actors who
transportation using an application system compete with other business actors. Mustafa Kamal Rokan,
Hukum Persaingan Usaha: Teori dan Praktiknya di Indonesia,
that connects the customer with the driver, 2012, Jakarta: Rajawali Pers, p. 17
12
Gojek is a motorcycle taxi service provider that is
while conventional transportation does not integrated with our smartphone. We can call a motorcycle taxi
with just the touch of a finger, can also make payments via the
use the application, and is directly carried out
application, even Gojek can be used to send goods or food
by the customer to the driver. delivery. Gojek has colored transportation in various major
cities in Indonesia. Competition between the two conventional
transportation service providers (ojek pangkalan) and virtual
(Ojek Online) has recently been widely reported in the mass
media. The existence of Gojek services will bring new colors
among various transportation services. But on the other hand,
8
Setyaningsih Sri Utami, April 2010, Pengaruh Teknologi the existence of Gojek has made the motorcycle taxi base
Informasi Dalam Perkembangan Bisnis, Jurnal Akuntansi dan public space threatened, because Gojek is more organized and
Sistem Teknologi Informasi, Vol 8 No. 1, p. 63 technology-based through smartphone management, so
9
Primary MG. Wijaya BM, Kunaifi A, ‘Analisis Deskriptif passengers without the need to negotiate tariffs and without
Konsumen dan Mitra Pengemudi pada Jasa Transportasi Online meeting at an ojek base.
Ride Sharing’, 2017, Jurnal Sains dan Seni ITS, Volume 6 Nomor 13
Uber is a four-wheeled passenger transportation service
2, p. 164 company using a mobile application Online Taxi application in

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Changes in the social dynamics of the causes the existence of online transportation
community related to the presence of online- to shake conventional transportation. With the
based transportation are caused by development of technology, it is undeniable
technological factors14. The technology that competition in the business world and
utilized in online transportation has changed services is also increasingly demanded to
the dynamics of society to shift to online increasingly innovate. However, the
transportation. The shifting lifestyle of the Government must continue to play a role
community has also become one of the through its policy of issuing regulations that
supporting factors for the development of a protect the interests of all parties, not issuing
digital-based lifestyle. On the other hand this policies that hinder the development of online
might lead to pros and cons. But if we can transportation.
look closely, many parties will be more In essence, business competition law is
benefited by the presence of online intended to regulate competition and
transportation or digital-based service monopoly for profitable purposes. If business
products and business opportunities competition law is given a broad meaning, not
increasingly wide open. only includes competition regulation, but also
Online transportation is accused of the issue of whether or not the monopoly can
causing a decrease in the income of be used as a public policy suggestion to
conventional transportation drivers. Though regulate which power can be managed by the
technological progress is something we private sector.15 Business competition law is a
cannot avoid in this life. Obstacles arise in law that regulates the interaction of a
realizing the synergy between conventional company or business actor in the market,
and online transportation, namely the slow while a company's behavior when interacting
regulation of online transportation which is based on economic motives.16
Prohibited activities as referred to in
order to make shuttle bookings for passengers from a user-
Law No. 5 of 1999 which occurred or resulted
defined place and delivered according to the destination of the
mobile Online Taxi application. Uber Online Taxi Application in in monopolistic practices and unfair business
its use is controlled by GPS as a map tool or location map. The
Uber company was founded by duet Travis Kalanick and Garett competition, including monopoly, monop-
Camp. Uber services were born in San Francisco in 2010. Uber
currently operates in many countries, including Indonesia. sony, market control, conspiracy, dominant
14
Literally the technology comes from the Greek language,
position. Article 1 Number 4 of Law No. 5 of
which is tecnologia which means systematic discussion of all
arts and crafts. The term has the root word "techne" in Ancient 1999 states that dominant position is a
Greek meaning art (art) or craft (craft). From the literal meaning,
technology in Ancient Greek can be defined as the art of condition where a business actor does not
producing the means of production and using them. The
definition then developed into the use of science in accordance have a competitor in the relevant market in
with human needs. Technology can also be interpreted as
relation to the market share that is controlled,
"knowledge about how to make things (know-how of making
things) or how to do something (know-how of doing things) in
the sense of the ability to do something with high value, both
the value of benefits and the selling value. Quoted from 15
Arie Siswanto, 2002, Hukum Persaingan Usaha, Jakarta:
Nanang Martono, 2012, Sosiologi Perubahan Sosial : Perspektif Ghalia Indonesia, p. 23
Klasik, Modern, Postmodern, dan Postkolonial, Jakarta: PT Raja 16
Andi Fahmi Lubis, 2009, Hukum Persaingan Usaha:
Grafindo, p. 276 Antara Teks dan Konteks, Jakarta: Creative Media, p. 21

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or a business actor has the highest position the presence of online-based transportation.
among its competitors in the relevant market Conventional transportation business actors
in relation to financial capacity, ability to must make changes in terms of their human
access supply or sales, and the ability to adjust resources and their equipment prepared for
supply or demand for certain goods or the digital era.
services. UU no. 5 of 1999 in Article 25 states As the number of producers and
that business actors are prohibited from using consumers increases, the competition in the
a dominant position either directly to market will become more perfect. The welfare
establish trading conditions with the aim of of people who are taken away or in economic
preventing and / or preventing consumers language called Dead Weight Loss which
from obtaining competing goods and / or usually occurs in the monopoly market will be
services, both in terms of price and in terms of able to be overcome properly. Monopoly
quality, limit the market and technology power can deter some consumer groups who
development; or inhibit other business actors want to consume company goods or services,
that have the potential to become but do not have sufficient purchasing power
competitors to enter the relevant market. due to high pricing. The choice of conventio-
The Business Competition Super-visory nal modes of transportation, such as taxis for
17
Commission (KPPU) stated that it was very example, whose industries are only controlled
appreciative of the presence of online by a few companies in the market, certainly
transportation. KPPU also emphasized that makes it difficult for consumers. Therefore, the
online transportation that runs cannot be said presence of online transportation will certainly
to cause unfair business competition when have an impact on the new price balance.18
competing with conventional transportation. It Considering the perfect market
is normal when the community shifts to online aspirations cannot be separated from the role
transportation with the facilities and services of the government in realizing a perfect
provided. Conventional transportation must market. In this case the law must be able to
be able to compete with the development of participate so that market idealism can be
technology and society. Conventional achieved and not harm economic actors /
transportation must be able to compete in business actors and the realization of the
terms of price and service so that ecosystem balance of doing business.19 Based
conventional transportation is not eroded by

17
Position of KPPU in the constitution is a state of auxiliary
organ (state auxiliary organ) being banned by the President.
KPPU is not a judicial institution but KPPU has the authority to 18
Lola Amelia, 2015, ‘Respon Kebijakan Terhadap
carry out quasi judicial covering the authority possessed by the Transportasi Berbasis Aplikasi di Jakarta : Kajian Singkat dan
judicial institution namely investigation, prosecution, examining, Rekomendasi’, The Indonesian Institute Center For Public
adjudicating until deciding business competition cases at the Research, p. 32
first level. Quoted from Alum Silombon, Oktober 2012, 19
Al Araf Assadallah Marzuki, ‘Juni 2017, Urgensi Putusan
‘Kedudukan Hukum Komisi Pengawas Persaingan Usaha Sela Berkaitan Dengan Harta Kekayaan Pelaku Usaha Dalam
Melaksanakan Wewenang Penegakan Hukum Persaingan Hukum Acara Persaingan Usaha di Indonesia’, Jurnal Panorama
Usaha’, Mimbar Hukum, Volume 24 Number 3, p.540 Hukum, Volume 2 Nomor 1, p. 88

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on responsive legal theory20 which states that hamper the development that occurs in
the law should be able to respond to changes society. The government should form
in society and can accommodate what is in responsive regulations for both online and
the public interest in a legal product, namely conventional modes of transportation, given
the Law. that both application-based and conventional
The root of the progressive law in public transport also have the same rights to
understanding the symptoms of online run their businesses and make a living.
transportation arrangements is an orientation Responsive law is a law that reflects a
that is quite appropriate considering the sense of justice and fulfills people's
existing regulations. Arrangements are no expectations. In the process of making
longer able to answer business trading in responsive legal products, social groups or
general, especially online business. Online individuals in society are given a large role
business opens the possibility of every person and full participation. The results of this
or legal subject to participate in online process are legal products that are responsive
transportation services without having to form to all interests, both the public and the
a legal entity either PT, Foundation or Government. The rules issued by the Ministry
cooperative to accommodate online of Transportation include:
businesses. Personally it is possible and 1. Prohibition to operate for online-based
sufficient to join an online application transportation companies through the
company that provides applications and Minister of Transportation's Decree
brokers to consumers of online transportation Number UM.302 / 1/21 / Phb / 2015
services.21 because they are considered contrary to
The Indonesian government, especially Law Number 22 of 2009 concerning Road
the Ministry of Transportation, cannot be said Traffic and Transportation, however then
to be responsive to the development of online this Ministerial Decree was revoked
transportation. This began when the Ministry because the President's statement that
of Transportation asked the Ministry of online application-based transportation
Communication and Information to close was still needed by the community.
applications or block online transportation 2. Ministerial Regulation Number 32 of 2016
applications. Government policy should not concerning Managing Transpor-tation of
People with Public Motorized Vehicles Not
20
According to Philippe Nonet and Philip Selznick, good in Routes.
law should provide something more than just legal procedures.
The law must be competent and fair. The law must be able to 3. Minister of Transportation Regulation No.
recognize the wishes of the public and have a commitment to
26 of 2017 which has been canceled by
achieving substantive justice. Philippe Nonet dan Philip
Selznick, 2007, Hukum Responsif, Bandung: Nusamedia, p.6 the Supreme Court because it is
21
Agus Pribadiono, Agustus 2016, ‘Transportasi Online VS considered several points contrary to Law
Transportasi Tradisional Non Online Persaingan Tidak Sehat
Aspek Pemanfaatan Aplikasi Oleh Penyelenggara Onine’, Lex No. 22 of 2009 concerning Traffic and
Jurnalica, Volume 13 Nomor 2 , p. 133

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Transportation and Law No. 20 of 2008 sized businesses without leaving the
concerning Micro and Small and Medium principle of family;
Enterprises, then issued again. d) In the petition for objection to the
4. The Minister of Transportation Regulation material test rights, the Supreme Court
No. 108 of 2017 concerning the considers that the object of application is
Implementation of Transportation of contrary to the higher laws and
Persons with Public Vehicles Not In regulations, which are contrary to Article 3,
Routes, which finally returned to the Article 4, Article 5 and Article 7 of Law No.
Supreme Court again. 20 of 2008 concerning Micro, Small and
The consideration of the Supreme Medium Enterprises. Because it does not
Court revoked several articles in Minister of grow and develop business in order to
Transportation Regulation No. 26 of 2017 build a national economy based on
includes: equitable economic democracy and the
a) Special rental services based on online principles of empowering micro, small and
applications are a logical consequence of medium enterprises, it is contrary to
the development of information Article 183 paragraph (2) of Law Number
technology in transportation modes that 22 of 2009 concerning Traffic and
offer better services, guaranteed travel Highway, because the tariff deter-mination
security at relatively cheap and timely is carried out. Based on the upper and
prices; lower limit rates, on the proposal of the
b) The fact shows the presence of special Governor / Head of Agency determined by
rental vehicles has succeeded in changing the Director General on behalf of the
the form of the market from monopoly to Minister and not based on agreement
competitive market competition, by between service users and special leasing
utilizing excellence on the technology side companies.
to partner with micro and small Innovation has a very important role in
entrepreneurs with the concept of sharing the country's economic development, because
economy that is mutually beneficial by innovative companies create new values that
promoting the principle of family as in did not exist before. In this way they create
Article 33 paragraph (1) 1945 Constitution. wealth for companies, countries and the
c) The preparation of regulations in the field world. The more innovative a company is the
of transportation based on technology more productive and more efficient in using
and information should be based on the resources. The more productive the company
principle of consensus deliberation that in a country, the more efficient the country
involves all stakeholders in the field of uses resources. Thus the innovation carried
transportation services so that together out by the company shows how important
can develop micro, small and medium- innovation is not only for the benefit of the

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company but also for the country and also the government's attitude in setting regulations
influence of the innovation on society.22 that are firm and responsive. The government
The thing that must be done by the can accom-modate the needs of two
government to realize the synergy between conventional and online modes of
conventional and online transportation, transportation. The government encourages
among others: conventional transportation players to join
1. The government's attitude in establishing and work together in building public transport
regulations that are firm and responsive. with better services.
In the sense that the rule is not biased but
Recommendations
can realize the rules needed by
1. It would be better if the government
conventional and online transportation;
immediately issued a responsive
2. The government can accommodate the
regulation for two conventional and online
needs of two conventional and online
modes of transportation to create the
modes of transportation. The govern-ment
right regulatory formulation for both.
must be able to be a mediator and
2. The government is conducting training for
facilitator for both modes of trans-
conventional transportation actors to be
portation. So that an agreement that
able to take advantage of technological
benefits both parties is realized;
developments to develop conventional
3. The government encourages conven-
transportation businesses in order to
tional transportation players to join and
compete with online transportation.
work together in building public transport
with better services. BIBLIOGRAPHY

CLOSING Books

Conclusion Abdulkadir Muhammad, 1998, Hukum

Pengangkutan Niaga, Citra, Bandung:
The synergy barriers between
Aditya Bakti.
conventional transportation and online
transportation are the slow regulation of the Andi Fahmi Lubis, 2009, Hukum Persaingan
Government that regulates online-based Usaha: Antara Teks dan Konteks, Jakarta:
transportation. The government must make Creative Media.
appropriate regulations for these two modes Andika Wijaya, 2016, Aspek Hukum Bisnis
of transportation without having to turn off Transportasi Online, Jakarta: Sinar Grafika.
online transportation. Because the presence of
Arie Siswanto, 2002, Hukum Persaingan
online transportation is due to technological
Usaha, Jakarta: Ghalia Indonesia.
advances that cannot be avoided. The
Martono, Nanang 2012, Sosiologi Perubahan
22
Trisna Febrina, Juni 2014 ‘Studi Penerapan Inovasi
Teknologi Informasi Dengan Metode Technology Watch and
Sosial: Perspektif Klasik, Modern, Post-
Competitive Intelligent’, Volume 5 Nomor 1, Comtech, p. 356

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modern, dan Postkolonial, Jakarta: PT Raja International Journal of Computing &

Grafindo. Business Research, Proceedings of I-
Society
Mustafa Kamal Rokan, 2012, Hukum
Persaingan Usaha : Teori dan Praktiknya di Pratama MG. Wijaya BM, Kunaifi A, 2017,
Indonesia, Jakarta: Rajawali Pres. ‘Analisis Deskriptif Konsumen dan Mitra
Pengemudi pada Jasa Transportasi Online
Philippe Nonet dan Philip Selznick, 2007,
Ride Sharing’, Jurnal Sains dan Seni ITS,
Hukum Responsif, Bandung: Nusamedia.
Volume 6 Nomor 2,
Journal
Setyaningsih Sri Utami, April 2010, ‘Pengaruh
Agus Pribadiono, Agustus 2016, ‘Transportasi
Teknologi Informasi Dalam Perkembangan
Online VS Transportasi Tradisional Non
Bisnis’, Jurnal Akuntansi dan Sistem
Online Persaingan Tidak Sehat Aspek
Teknologi Informasi, Vol 8 No 1.
Pemanfaatan Aplikasi Oleh Penyelenggara
Sukardi, 2016 ,Penanganan Konflik Sosial
Onine’, Lex Jurnalica, Volume 13 Nomor 2.
Dengan Pendekatan Keadilan Restoratif’,
Amar Ahmad, Juni 2012, Perkembangan
Jurnal Hukum dan Pembangunan 46,
Teknologi Komunikasi dan Informasi : Akar
Nomor 1,
Revolusi dan Berbagai Standarnya, Jurnal
Trisna Febrina, Juni 2014, ‘Studi Penerapan
Dakwah Tabligh, Volume 13 Nomor 1,
Inovasi Teknologi Informasi Dengan
Alum Silombon, Oktober 2012, ‘Kedudukan
Metode Technology Watch and
Hukum Komisi Pengawas Persaingan
Competitive Intelligent’, Comtech, Volume
Usaha Melaksanakan Wewenang
5 Nomor 1,
Penegakan Hukum Persaingan Usaha’,
Regulations
Mimbar Hukum, Volume 24 Nomor 3.
Undang-Undang No 5 Tahun 1999 Tentang
Lola Amelia, 2015, ‘Respon Kebijakan
Larangan Praktek Monopoli dan
Terhadap Transportasi Berbasis Aplikasi di
Persaingan Usaha Tidak Sehat
Jakarta : Kajian Singkat dan Rekomendasi’,
The Indonesian Institute Center For Public Undang-Undang Nomor 8 Tahun 1999
Research Tentang Perlindungan Konsumen

Navid Nikakthar and Yang Jianzheng, ‘2012, Undang-Undang No 13 Tahun 2003 Tentang
Role of E-commerce in Supplay chain Ketenagakerjaan
Management to minimize costs’, African
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Usaha Mikro Kecil Menengah
‘Future Of E-Commerce in India’,

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Undang-Undang No 22 Tahun 2009 Tentang

Lalu Lintas Angkutan Jalan

24