JAKARTA TRAFFIC, the price of petrol and parking

The 2011 Indonesian budget for fuel subsidies has recently been increased to Rp.129.7 trillion (10¹²), or US$15.2 billion (10⁹). Due to this subsidy the price of regular petrol at the pump is Rp.4,500, or US$0.53 per litre. Comparable prices (converted to Indonesian Rupiahs) for neighbouring countries are: Malaysia – 5,066; Thailand – 8,777; Singapore – 11,560. There is nothing wrong with subsidies, as long as they are allocated to important things, such as economic development, and reach the right parties. But in practice, Indonesia’s fuel subsidy does not support development and it is mainly enjoyed by the rich.

This heavy subsidy seems to encourage the private use of vehicles—the poor quality of public transport helps support the desire for private ownership of vehicles—and by 2010 there were some 60 million motorcycles on the road and 14 million cars. Vehicle densities do of course follow population densities, and relative wealth levels. Consequently, the bulk of the cars and motorcycles are to be found on Java and Bali. No wonder thus that Jakarta (and Bandung, Surabaya, and the Denpasar-Kuta-Sanur area) is heavily congested, certain parts of the city being gridlocked most of the day.

It has been calculated that an increase in the petrol price to Rp.6,000 would save some US$2 billion in subsidies that could be used for the construction of infrastructure. More roads would dilute the number of cars per 100 km of road, while an increase in the price of petrol would most likely make a fairly large number of car owners decide to switch to another transport mode: public transport, or sharing, or even cycling.

This would require that the quality of public transport were drastically improved. And to encourage cycling the separation of motorised traffic from bicycles would improve the safety of cyclists—under present conditions riding a bike is all but comparable to a death wish.

Apart from the low price of petrol, a second bonus for car owners is the low price of parking and the ubiquitous availability of parking space. In secured parking areas, for instance at shopping malls or office buildings, the charge is Rp.2,000 (less than US$0.25) for the first hour and another Rp.2,000 for each subsequent hour. Street side parking in commercial districts is organised by official or otherwise organised parking attendants who demand Rp.2,000 for an unspecified period.

Compare these prices to the parking fees applicable in the European capitals—an afternoon in town will set you back a few euros on parking alone. The scarcity of parking space is moreover a good reason to leave the car at home and go by bus, tram or underground.

Although it will cut into my own purse, I believe that the expenses of driving a car in Jakarta should be increased heavily in order to make car owners think twice before taking their car.

In combination with improvements in the public transport system—cleanliness, safety, schedules and routes—a major part of the traffic problems of Jakarta could be overcome.

But I also repeat my proposal to compile cases of flawed traffic flow where a change of the traffic rules and regulations would improve the situation.