Blue Bird also sought to improve its cashless payment system and use smartphones to measure the trip distance and determine the fare. (Antara Photo/Adrian)

Jakarta. Blue Bird, Indonesia largest taxi operator, has demanded the government treat taxi companies the same way it would popular app-based car hailing services, allowing them to charge flexible pricing, operate their own car hailing services and get rid of taximeters.

Sigit Priawan, a director of Blue Bird, said the company committed as far as acquiring car-rental companies which are now operating using San-Fransisco-based car hailing apps Uber and Malaysia's Grab.

"We just want the same treatment. We are ready to compete with them," Sigit said.

"The key here is efficiency," he added, saying that the company was gearing up to use a navigation system that ensures shorter pick up routes for its fleet, as well the use of more economical fuel.

Blue Bird also sought to improve its cashless payment system and use smartphones to measure the trip distance and determine the fare.

"But, the fare must [use taximeter]. That's the rule [today]," Sigit said.

The comment marks the country's leading taxi company shifting to a less belligerent stance against car hailing apps, which during two years of operation in Indonesia has chipped away a chunk of market share from existing taxi operators.

Taxi drivers from Blue Bird and rival operators staged large scale protest in the capital Jakarta on Monday, aimed at ousting Uber and Grab cars from the country's streets.

The protesters got an initial boost from Transport Ministry Ignasius Jonan, who asked the minister of communication and information technology to ban the apps.

But, the request was met with widespread public backlash across social media and was overturned a day later with President Joko Widodo reaffirming his support for consumers to access cheaper and more convenient transport services.

The government has asked only Uber and Grab to incorporate their companies and drivers as local business entities to comply with existing transportation law — including submitting vehicles for regular checks with the authority, like any other form of public transport.

Sensing the turning tide, Blue Bird has called on the government to allow them to operate like a car hailing app, allowing them to charge fares based on real time taxi supply and demand.

Under current regulation, the government has fixed taxi fare on a level that is determined by Land Transportation Owners Organization (Organda), making pricing rigid and often being not in the best interest of customers. A study from Indonesia anti-monopoly agency concluded that the taxi-pricing system is a cartel-like practice.