Characteristics of Private Car and Mortorcycle Ownership in Indonesia

Abstract

The main objective of this research was to develop Indonesian car and motorcycle ownership rate models at municipality and regency levels. The research was conducted using yearly aggregate data (1990-2000) from 21 municipalities and 28 regencies throughout Indonesia. In addition, 105 households from 4 municipalities and 3 regencies were interviewed. The car and motorcycle ownership rate model form was the quasi-logistic function and values of the saturation level were selected based on both previous research and the function boundary condition function. Both in the cross-sectional and longitudinal aggregate models, the wealth level was the most important factor in explaining the vehicle ownership rates variation. The higher the wealth level, the more sensitive car and motorcycle ownership was to the wealth level. In household level a proxy of wealth level (household monthly expenditure) was positively correlated with the number owned cars. As the wealth level increased, motorcycle ownership in a household decreased.