Government Policy on Traffic Congestion

Jakarta, Indonesia is home to 12 million people. Include its neighboring smaller cities from Bogor, Depok, Tangerang and Bekasi and the metropolitan now holds 28 million people.

Jakarta is a thriving city, one of the forerunners of the developing archipelago. As a center for business, politics and culture, Jakarta is home to headquarters of state-owned enterprises, private companies, governmental offices and foreign embassies. This of course contributes to high levels of activity and traffic. Due to an inadequate public transport system, citizens commonly opt to travel in private vehicles. The number of commuters from Bogor, Depok, Tangerang and Bekasi who are doing their activities in Jakarta, based on Center of Statistics Agency (Badan Pusat Statistik, BPS) Jakarta 2014 data is 1,382,296 people.

Since the city has been ranked first on the list of the worst traffic in the world by Castrol Sotp-Start Index, a lot of reviews have been negatively written about the city affecting and pressuring companies in the construction sectors. Axis Capital Group, a company which sells and rents capital equipment in Singapore and has branched out to Jakarta is only one of the few businesses who put a step forth to solving this issue amidst the warnings that the case is unsolvable.

The traffic problem in Jakarta, unsolved by previous governments, is more than a decade’s issue. According to Bambang Susantono, Chief of the Indonesian Transportation Community (Masyarakat Transportasi Indonesia, MTI), the ongoing traffic problem in Jakarta causes Rp 8,3 trillion (USD 640,000,000) of loss per year, referring to the Study on Integrated Transportation Master Plan for Jabodetabek (SITRAMP 2004). This calculation includes three aspects as the consequences of traffic jams, namely fuel loss because of the vehicle’s operating cost of Rp. 3 trillion, loss caused by wasted time of Rp. 2,5 trillion (USD 192,975,000), and the impact of air pollution to health, estimated at Rp. 2,8 trillion (USD 216,132,000).

To combat Jakarta’s traffic jams, the Governor of Jakarta, Basuki Tjahaja Purnama – commonly known as “Ahok” – has begun to implement several short and long-term policies since coming to office in October 2014. One of his long-term plans includes establishing a new Mass Rapid Transport (MRT) system. Construction has already begun and will be completed by 2018. This MRT line will serve people with Kota-Lebak Bulus route. This is a type of rail-based MRT Heavy Rail Transit and will be integrated with other mass transportation such as bus, Transjakarta and train. MRT in Jakarta is expected to reduce the number of motor vehicle users by 25,500 each day.