Joint Implementation of Policies for Making the MRT Successful and Mitigating the Congestion in Jakarta

Abstract

Traffic congestion in Jakarta is an emerging challenge. Although the policies have been implemented both discouraging private vehicles and improving public transport, the traffic jam is getting worse as conflicting fuel subsidy policy is implemented. This study reports empirical evidence on the trade-off effect between improvements in public transport services and fuel subsidy removal for a modal shift of private vehicle commuters in Jakarta. The data on stated preferences on the possibility of modal shift for private vehicle commuters in Jakarta are collected and analyzed by mixed logit models. With presence of road pricing at the (Central Business District) CBD in Jakarta, we find that joint implementation of policy scenarios through removal of fuel subsidy and road pricing is more effective to discourage people using cars or motorcycles. As the consequence, the new provision of mass rapid transit (MRT) will be effective to attract car and motorcycle commuters in any feasible range of service improvements.