Politics of Development Paper - Traffic Congestion - Airin Rachma

Politics of Development / INTS 4468
Fall 2013
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Jakarta’s Notorious Traffic Congestion: Further Consequences of Neo-
Liberalism by Airin Rachma
The problem of traffic congestion in Jakarta has its serious implication encompassed economic,
social and environmental damages. Looking at the economic, political and cultural determinants
as the causes of traffic congestion in Jakarta, this paper finds that neo-liberalism has affected
negatively the management and the problems of traffic in Jakarta and it is necessary for both the
Indonesian government and people to contribute in policies that aims to reduce traffic.
I. Introduction
Since the past decade, Indonesia has undergone rapid economic progress with a 6.2% growth
in 2012, placing it as the biggest economy in Southeast Asia (Reuters, 6 August 2012). This
positive phenomenon has not always been the reality for Indonesia, as its economy has
undergone significant ups and down since its independence in 1945. In the 1960s, former
Indonesian President Suharto felt that the country was in dire need of economic rehabilitation
over the high-inflation, communist-influenced, and closed economic system his predecessor,
President Sukarno, had left him (Schwarz, 1997). Implementing policies advised by his Western-
educated advisors 1 such as lowering inflation, deregulation and balanced-national budget,
Suharto made Indonesia a safe haven for foreign capital2 (Pesek, 2010). Since then, foreign
direct investment had escalated – helping Indonesia in infrastructure development and the
creation of one of the most stable economies, and Suharto’s anti-communist stance brought
support from Washington, the World Bank and the International Monetary Fund (IMF)
(Erlanger, 1998).
However, when Indonesia was badly affected by the 1998 Asian financial crisis, Suharto was
forced to resign. Taking the advise of the IMF, the new government tried to recover the economy
1 Suharto’s economic advisors are widely known as ‘the Berkeley mafia’.
2 The economic policies also encompassed reductions in trade barriers, opening the market to foreign investment and
a series of five-year economic master plans (Hutabarat, 2009:535)

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that suffered from depreciation of Indonesian Rupiah toward the US Dollar and high inflation.
The Indonesian government then asked the IMF for assistance and the Letter of Intent (LOI)
between the two parties was signed in October 1997. The LOI included USD 43 billions in
foreign assistance (Hanke, 2007), and encompassed policies that had to be implemented by the
Indonesian government, such as lowering export taxes and restrictions, applying simplified and
expanded list of activities open to foreign investors and the requirement for Indonesia’s state-
owned enterprises to divest in order to make more room for foreign investment (IMF, 1997).
From the economic perspective, the IMF-based economic policies have brought Indonesia
one of the most consistent growth rates among global economies over the past decade. During
these years, Indonesia experienced the least volatility in economic growth of any Organization
for Economic Cooperation and Development (OECD) or BRIC (Brazil, Russia, India and China)
plus South Africa (Mckinsey, 2012:15). This economic pattern is also supported by Indonesia’s
relatively high share of consumption that has also saved its economy to a large extent from
adverse economic trends overseas, including during the global downturn in 2008. Furthermore,
the Indonesian market is of sufficient size for foreign companies to develop manufacturing bases
there in order to serve local demand (Mckinsey 2012), and the existence of these foreign
companies contribute to the emerging digital age and technology as well as the rise of the middle
classes (Reuters, 2012).
These economic phenomena are accounted for as characteristics of globalization3 and one of
the significant sectors that have been greatly affected by these neo-liberal-effects is the auto-
industry. The world’s top car and motorcycles makers such as Toyota, Suzuki, Nissan, Ford and
3 The characteristics of globalization includes unprecedented expansion of investment and trade; the opening up to
international trade of the world’s most populous regions and opportunities for more developing countries to improve
their standards ofliving (Steger, 2009:39).

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General Motors are battling to locate their investment in Indonesia. This led to a 17% increase in
car sales from 2010 to 2011, to nearly 900,000 new vehicles - surpassing China which car sale
rose was only 2.6 %. If this boom continues, it is predicted that the number of car sales would go
up to more than 2 millions by 2018 (Bland, Ben, 10 October 2012). Since the Japanese lead the
creation of an elaborate parts supply arrangement with foreign and local capital in Southeast Asia
in the 1980s (Gerrefi, 1995: 127-127), the number or motorcycle sales has been even more
impressive, reaching 7.06 million units in 2012. Within the ‘growth’ system, Indonesia has taken
part to be in the sub-regional cooperation zones for auto component-supplier arrangement by
foreign companies that are strongly supported by its government (Gerrefi, 1997: 127). By
looking at the auto-industry alone, this reflects a continuous escalation of purchasing capacity of
many Indonesians, thus making globalization positive for the country’s development.4 On the
other hand, the rise of foreign car sales in Indonesia also reflects an economic and financial
integration as one of the most powerful transforming forces in the global economy (Das,
2009:89-90).
Yet, this progress in the auto-industry sector is not without any negative consequences. The
boom in car and motorcycle sales has not been accompanied with proper infrastructure planning,
making the capital of Indonesia – Jakarta, famous not only for its skyscrapers and sporadic malls,
but also notorious traffic congestions5. The never-ending traffic jams do not only cause stress
and frustration for millions of Jakarta citizens and commuters everyday, but they also cause
enormous economic loss amounted up to Rp. 12.8 trillion (US $ 1.3 billion) in 2012, which
4 Moises (2009:32) states that ‘the success of trade and investment boom due to globalization has made the middle
class to be the fastest growing segment of the world’s population’.
5 OECD (2007:10) claims that there is no single, broadly affected definition, however, for this paper, traffic
congestion is defined as ‘a situation in which demand for road space exceeds supply and a relative phenomenon that
is linked to the difference between the roadway system performance that users expect and how the system actually
performs’.

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includes losses related to wasted time, fuel costs and health costs (Hastiadi, Fitri, 15 December
2012). On the environmental sector, the excessive usage of fuel during traffic jams has led to air
pollution and environmental degradation in Jakarta, increasing the level of nitrogen dioxide and
benzene. The adverse impact on environment has also created more problems on the health
sector, by causing respiratory diseases such as asthma and lungs cancer, as well as premature
birth, low birth rate and increased mortality rate (WHO, 2005: VIII-XVI). Psychologically, it
affects people social-well being as their mobility is essential to their quality of life and traffic
congestion often prevents that from happening (Washington Policy Center, 2012). Another
consequences of continuous traffic congestion is its negative effects on Jakarta’s image as the
center for politics, culture and businesses, as, the traffic along with air pollution have placed
Jakarta as one of the most hated cities in the world (CNN, 11 June 2012). Indonesia is also far
left behind in terms of traffic management and infrastructure development if compared with its
neighbors in the region, such as Singapore that has successfully implemented road pricing and
Thailand, which congestion problem has improved since the existence of its mass-rapid
transportation system. If the Indonesian government does not do anything about it, there will be
a potential gridlock by 2014 (The Jakarta Post, 30 September 2013)
This illustration demonstrates how serious the issue of traffic congestion is. This paper aims
to provide deeper understanding on the occurrence of traffic congestion in Jakarta, especially
when one looks at the neo-liberal-driven economic policies the Indonesian government
implements in the midst of emerging globalization. This paper intends to further study what is
wrong with the current policy on traffic congestion and what should be done about it, and how
the Indonesian government can manage such problem while at the same time facing a surge of
neo-liberal pressures on its economy. Therefore, the research question of this paper would be;

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“What are the causes of traffic congestions in Jakarta under Indonesia’s neo-liberal
economic policies?” The finding of this paper is based on several considerations; namely
economic, political and cultural determinants, how neo-liberal values affect Indonesia’s auto
industry, and the politics behind the management of traffic congestion.6 The hypothesis would
be; “traffic congestion in Jakarta is caused by economic, cultural and political determinants and
when not properly managed, the application of neo-liberal approach in Indonesian economy can
worsen traffic congestion. The timeline used in this paper starts from year 1967, in which
President Suharto first took office until the present under President Susilo Bambang
Yudhoyono’s term.7 To support the analysis of the finding, this paper utilizes several economic
and development theories and concepts, such as neo-liberalism, globalization, good governance,
state-building and human development.
This paper consists of three parts. The first part is the introduction that consists of basic
background information and the application of neo-liberal economic policies, the emergence of
globalization and the problem of traffic congestion in Jakarta. The second part elaborates on the
causes of traffic congestion that is followed by a short analysis. The third part is the conclusion.
II. Causes of Traffic and how to Overcome it
Like many developing cities, Jakarta faces many problems that are complex and
multidimensional. Its collective failure of urban planning started back at least 50 years ago and
has left the city with no integrated system of public transport (The Economist, 2010). Aside from
6This paper focuses on traffic congestion problem in Jakarta and not otherbig cities in Indonesia such as Bandung,
Surabaya and Medan,due to Jakarta’s position as the center for politics, economy. It is where the government
offices and ministries are located, along with foreign embassies and it is also the only metropolitan city with many
complex problems that are surrounded by the many satellite cities, where millions of commuters who live in those
cities have to drive to Jakarta every day, causing traffic. Therefore this paper chooses Jakarta for its study case not
only because of the worsening traffic problem, but also because its unique geographical position and status.
7 Although this timeline seems too broad, this paper intends to reflect how neo-liberal economic policies affects
traffic congestion problem in Jakarta – policies that were started by President Suharto.

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traffic congestion, Jakarta also encounters issues such as annual flooding, surge of daily
commuters from the suburbs, lack of infrastructure and decent public transportation system, poor
waste management system, increasing population, the existence of slum areas and poverty.
Inevitably, these problems contribute to the worsening of traffic in Jakarta and to simplify them,
this paper categorizes the causes of traffic congestion into economic, political and cultural
determinants. The categorization of these determinants is also derived on the note that
globalization is an economic, political and cultural process (Steger, 2009: 28-46).
Economic Determinant
During the ‘New Order’ development era under President Suharto in the late 1960s,
Indonesia’s participation in international capitalism encourages a shift in Jakarta’s transport
profile toward greater motorization, major road construction, and road-based sub-urbanization.
As mentioned in the introduction part, Suharto implemented neo-liberal economic policies and
this resulted in Indonesia’s participation on Bretton Woods forums such as the General
Agreement on Tariff. Such participation required Indonesia to include deregulation on its
policies, which resulted in the proliferation of new private banks that provided lower mortgage
rate, thus encouraging greater number of people to purchase property in Jakarta’s real estate
market – a market that expanded outward along major road corridors. Deregulation also resulted
in a boom in car and motorbike industries, supported by lower import taxes, cheaper vehicles and
more accessible consumer loans. During this era, new highways and toll roads were build as
encouraged by the nation’s newly opened relationship with the West and by becoming a major
recipient of World Bank and other grants and loans that exceeded US $ 5 billion by 195,
Indonesia built these large projects that imitated Western approaches such as freeway
development in the US. In this way, physical and economic policies are complementary by

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encouraging expansion and producing spaces of flows within Jakarta (Hutabarat, 2009: 536-
544).
Following the 1998 financial crisis, Suharto was overthrown, and the ongoing
development of toll roads temporarily declined as companies encountered financial difficulties
due to unfavorable exchange rates and lower traffic volumes. As the economy began to recover
gradually, construction recommenced and the building of new towns on the suburbs surrounding
Jakarta began to emerge.8 At the same time, the post-Suharto government of the reformasi
(reformation) era received assistance from the IMF, and as one of the preconditions they
implemented a pro-market policies that have opened and eased up the plantation of many foreign
cars and motorcycles factories. At present, with globalization raising the general living standard
for people (Steger, 2009:82-83) and the Indonesian economy is at its strongest, the number of car
sales is higher than ever, placing Indonesia as the largest automotive market in the Asia Pacific
region. In 2012, Suzuki planned to invest a two-year US$ 800 million, followed by Nissan (US$
250 million), Toyota (US$ 230 million) and Ford, who was planning to reopen its car factories in
just outside Jakarta with a total of US $ 150 million (The China Post, February 12, 2012)
Other than the high inflow of foreign capital, the existence of these new factories can
bring other economic advantages, such as creating more jobs, providing bigger investment,
higher levels of local value added and greater utilization of skilled labors (Gerrefi, 1995:139) in
Indonesia. Moreover, the escalation in people’s purchasing capacity also reflects a positive
dynamic in economic growth. However, the neo-liberal economic policies that generate both the
supply and demand for motorized vehicles actually contributes to traffic congestion. There are
8 These new towns and suburbs emerged into satellite cities, such as Bogor, Depok, Tangerang and Bekasi. These
four cities border with the Jakarta and when combined, these five cities are often called the Greater Jakarta
Metropolitan Area (JMA) or, in Indonesian; JABODETABEK (Firman, 2011)

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two reasons supporting this statement. First, the high number of vehicle growth that reaches 11%
per annum has not been in line with the development of infrastructure such as new roads that is
only 1% per annum (Rini and Sutomo, 2006). The development of highways and toll roads
connecting Jakarta and other suburbs such as Bekasi on the eastern border and Depok on the
western border did not ease traffic, but rather encouraged car sales by people who live in the
satellite cities that have to commute to Jakarta during peak hours, whose numbers reached
millions of commuters daily. This resulted in excessive numbers of cars and motorcycles, giving
them only 1 meter space, sometimes less, on Jakarta’s streets each day during peak hours. This
worsens traffic as Jakarta’s streets only account for 6.2% of the city’s land mass if compared
with 15-20% in New York, Tokyo or Singapore (Economist, 4 February 2010).
Second, despite the seriousness of traffic congestion problem, the Indonesian government
did not adjust its policies and regulation on vehicle industries. Instead of imposing higher taxes
on manufacturers and buyers, the government maintains the easy credit system and even offers
tax incentives on car puchase, such as lower taxes for buyers of low-emission vehicles that are
priced much lower than the regular cars. This offer is actually contradictory to its ‘green
vehicles’ objective, as lower car costs attract more consumers and not only worsens traffic, but
also cause further pollution and environmental damage (Shahjahan, 20 September 2013). This
paper argues, that has the Indonesian government imposed higher taxes, they would have
received more revenue that can be allocated into the development of infrastructure thus
discouraging consumers from buying more vehicles9.
On a wider perspective, the illustration above indicates that the capital market
liberalization approach, when applied with limited government intervention, was not appropriate
9 Tax incentive is ‘policy given to encourage investment in specific area by changing current tax structures,which
consist of any kind of taxes that affect corporate and household level’ (Anwar, Mulyadi, Martin, 2012: 323).

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for countries in the early stages of development or transition (Krugman, 1994). A country like
Indonesia that had just undergone a crisis, whether it was in the post-Sukarno era in the 1960s or
after the 1998 financial crisis was desperate to recover its economy, therefore, the short-term
economic advantages provided by neo-liberal approach seemed too attractive to pass and the
economic measures such as free-market and low taxes were taken with little long-term
consideration, as reflected in the high number of car sales yet low infrastructure growth.
Following the elaboration on economic determinants, the following section explains political
determinants as one of the causes of traffic congestion.
Politcal Determinants
This section aims to demonstrate the politics behind the management of traffic congestion
in Jakarta that is influenced by both domestic and foreign actors, and how corruption and weak
governance can contribute to traffic congestion. As mentioned, during Suharto era, the IMF and
the World Bank mostly financed infrastructure and road development. However, in reality, this
neo-liberal application actually opened doors to many corruption, collusion and nepotism
behaviors in the transportation sector. The constructions of infrastructure were mostly channeled
to those close to Suharto. Several key projects like toll roads were handled by Citra Marga
Nusaphala Company, which was controlled by Suharto’s daughter – Siti Hardiyanti Rukmana.
The development of toll road also provided source of income to other questionable companies,
such as the Timor national car project – owned by Suharto’s son Hutomo Mandala Putra
(Hutabarat, 2009:537). The monopolization of infrastructure project during Suharto affected how
roads in Jakarta are today, as back then roads were often built in areas that were most profitable
for the companies – for instance, roads were built to create access to housing areas owned by
Suharto cronies; and did not consider much of efficient city planning. It is alrady too late to alter

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the streets in Jakarta now and noting that infrastructure development can take years, even
decades, the roads that were developed did not help much with today’s traffic.
After the Indonesian reformation in 1998, the Indonesian government adopted
decentralization system that provided more authorities to the provincial government. However,
in the case of Jakarta’s traffic congestion, the provincial government’s intention to impose
moratorium on private cars sales and higher taxes on Jakarta areas were rejected by the central
government, due to the pivotal role of the automotive industry in the national industrialization
(Yulisman, 23 September 2013). The similar rejection also happened to the provincial
government’s protest over central government’s policy to give tax breaks of up to 70% for the
drivers for low-cost green cars, which policy had not been consulted to the local government
(Shahjahan, 20 September 2013). On a related subject, for at least 20 years, the city’s proposed
solution to overcome traffic has been to build a system of mass rapid transit (MRT) that will also
integrate bus and train routes. However, the plan has been stalled due to lack of fund and
complicated bureaucracy. In 2013, the plan came into action with the signing of a US$1.3 billion
loan agreement with the Japanese International Cooperation Agency (JICA)10. Expected to be
finished in 2016, it is one of the most expensive public projects in Jakarta and an NGO –
Indonesia Procurement Watch (IPW) has already accused the Japanese government and
Indonesia’s Ministry of Transportation of collusion in selecting the designer of the MRT system,
Nippon Koei, which is a Japanese engineering firm (Economist, 4 February 2010). Many
suspected the impeccable timing of the loan, especially with the publication by the Overseas
Economic Cooperation Fund (OECF) that consists of companies eligible to contracts to be
funded by the loan, which includes Nippon Koei. These facts raised many questions about the
aims and motives of the Japanese foreign loan programs (Hastiadi, Fitri, 15 December 2012),
10 JICA is the aid agency of the Japanese government

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especially when Japanese companies dominate 90% of Indonesia’s auto market (Bland, Ben, 10
October 2012).
These dynamics in politics clearly affects the infrastructure development such as the
construction of MRT, which affects the management of traffic congestion today. The capacity of
state to control bribery or corruption affects how it carries out its state functions, even at the
minimum level such as providing decent public transportation, leaving the people not many
choice but using their private cars that worsen traffic. When analyzed with the involvement of
foreign actors, Indonesia’s ambition to achieve and maintain positive economic growth by
implementing neo-liberal economic policies like accepting foreign assistance is not adequately
supported by efficient strength of state institutions (Fukuyama, 2004: 9-11). The central
government should commit to the authority given to the local government, as local-level
governance and institutional quality are key determinants not only of subnational dynamics
(Hill, 2008: 43), like Jakarta’s traffic congestion, but also national development as whole,
seeing that Jakarta’s traffic can cause national economic loss every year. Moving from political
determinants, the following section explains the role of cultural determinants in causing traffic
congestions.
Cultural Determinants
Based on the 2010 census, the population of Jakarta is 9.5 million, while Greater Jakarta
Metropolitan Area encompassed 27.5 million people respectively. In Jakarta, road networks are
limited and accommodates 20 million to 24 million trips everyday, and in the Greater Jakarta, the
number of commuters per day ranges from 40 million to 45 million, of which between 4 and 5.4
million commute to and from the capital from its satellite cities (Parikesit, 2010). The massive
number of commuters is resulted by the existence of Jakarta as the center for business, thus

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creating puling factors for people to work there. Although this pattern shows how rapid Jakarta
has grown in providing jobs for people who live in and around it, the daily flow of commuters
contribute to traffic congestion, not only because of the usage of their private cars, but also
because of the undisciplined behaviors of the drivers when facing traffic.
As mentioned before, globalization has led to the rise of the middle class, where in
Indonesia the number has reached 30 million people in a country of 242 million (Frigo, August
5, 2013). The real income per head of these people rose to a point where they can gain command
over consumption which transcended basic food, shelter and clothing (Rostow, 1961:10),
therefore when they feel that the state has not provided easy access to transportation, they will
buy their own private vehicles for commuting and transporting. However, these neo-liberal
benefits have not been accompanied with the proper human development, reflecting that having
higher income does not necessarily improve their behaviors. This results in lack of disciplines
among drivers, that varies from not obeying the traffic lights and having no driving etiquette to
stopping at forbidden spots (Dewi, 2012). The lack of intellectual capabilities does not only
apply to drivers, but also to law enforcement officers, as traffic police in Jakarta are easily bribed
and often serve as escorts for anyone who is willing to pay at least US$50 (Roberts, 7 April
2013), creating more chaos in the already jam-packed traffic.
As stated by Richard Jolly (2003: 84), neo-liberalism is totally silent about the ends
towards which the economic indicators lead, where in this case, the indicator is the rising income
of the middle class. The increase of income may be tangible, but it does not consider what that
income actually brings to people’s lives and whether they enjoy better living conditions or not. In
the case of Jakarta’s traffic jams, people have higher ability to purchase motorized vehicles, but
the intangible effect caused is the worsening of traffic jam especially when they are not provided

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with any options whether to use private vehicles or public transport during commute.
Corruptions among police also contribute because their actions encourage people not to be afraid
to break the law. In improving public’s behavior when driving, it is important for the government
to strengthen rules and law enforcement agencies to improve disciplines, as well as consider
several training, education and public campaign projects although it may take time to change
people’s attitudes (Hariyanto, 4 May 2012).
Causes of Traffic: Short Analysis
The elaboration on the causes of traffic demonstrates that economic, political and cultural
determinants contribute to the occurrence of traffic congestion. Although it is heavily
emphasized on economic determinants, the three causes multi-dimensional and interrelated with
one another. When Milton Friedman said that globalization engaged the kind of economic
organization that provides freedom directly, namely competitive capitalism (Steger, 2009:62), in
the case of Jakarta’s traffic congestion, such concept would not work appropriately as the
government has not been able to provide adequate public transportation, therefore leaving the
people no choice but to use their own private vehicle. Foreign powers such as the IMF, World
Bank and developed countries like Japan and the United States have successfully implemented
their powers in shaping Indonesia’s economic policies, by providing economic benefit and profit
as well as putting the Indonesian government in dilemmatic positions (Bachrach and Baratz,
1962: 942). Furthermore, the facts also implicate that positive growth in economy is not
necessarily in line with people’s happiness or satisfaction, as an increase in income may be
perceived differently depending on the subjective understanding of happiness11 at the individual
level (Dluhosch and Horgos, 2012:986) – on this case, more people buy vehicles therefore
11 Dluhosch and Horgos (2012:975) define subjective happiness due to its multidimensional and subjective
characteristics.

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contribute to traffic, causing stress that affects their happiness.
In overcoming traffic, this paper suggests the application of Singapore’s development
model, which “borrows ideas” on selected policies that have been implemented by other
governments, though carefully examined and modified to suit the local context (Quah,
1998:114). On the case of Jakarta’s traffic, both the central and local government can look up to
other countries that have successfully overcome their traffic problem. However, seeing the
complexities of internal problems that affects traffic such as annual floods, the existence of
slums and different original urban planning as well as the different landscapes between Indonesia
and other countries, Indonesia can select carefully each different policies implemented by other
governor to handle each specific problem, bearing in mind that the final programs must be
integrated in terms of routes and the vehicles themselves, such as interconnected buses and
trains. For instance, looking at the landscape similarities between Jakarta and Bogota, Columbia,
the application of ‘busway system’ might be applicable Jakarta (Prameshwari and Primanita
2010), and Singapore’s underground subway may not be applicable as Jakarta still faces annual
flood problem, but Jakarta can have a sky train as implemented by the Thai government which
routes are integrated with bus routes. Another example is; to discourage the use of private
vehicles, before implementing ‘electronic road pricing’ 12 as implemented by the Singaporean
government, it would be best for the Indonesian government to provide decent public
transportation system to give options for the citizens whether they would like to pay for road
pricing or use the public transport.
12 Electronic Road Pricing (ERP) systemis used in managing road congestion,that is based on a pa-as-you-use
principle, that charges motorist when they use priced roads during peak hours.This policy is useful when reducing
traffic and encourage motorist to change their mode of transport, and the rates vary for different roads and time
periods depending local traffic conditions.

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Human development, in terms of intellectual capabilities should be applied to both the
government and citizens, as state function is vital in strengthening the human capabilities (Jolly,
2003: 85), namely through strong law enforcement and traffic regulation, though these efforts
must be complimented by the support and good initiative of the citizens.
III. Conclusion
The finding of this paper demonstrates the application of neo-liberal economic approach has
affected negatively the problem of traffic congestion, especially when analyzed with the causes
of traffic that are categorized into economic determinants, political determinants and cultural
determinants. There should be a balance between economic and other development sectors and at
present, Indonesia’s development reflects an imbalance between its sectors, with the boom of
auto-sales causing damage to the environment as well as the health and social well being of
Jakarta citizens. With the heavy foreign investment on its auto industry sector, Indonesia must
learn how to harness the productive potential of those foreign companies, while at the same
learning how to capitalize on the multiple ways of linking up with the global economy in all its
sectors (Gereffi, 1995:137).
In overcoming traffic, the Indonesian government should make priorities in formulating their
policies, especially when the economy has grown and the levels of income make possible not
only the eradication of mass poverty and strong economic growth, but also a wider range of
choices and an improved quality of life for the whole population (Jolly, 2003:88), including
adequate access to decent transportation system. In order for the policies to work, the
government needs strong support from their people, as the management of traffic congestion is
vicious cycles that have to be carried out simultaneously, bearing in mind the complexities of
issues in Jakarta’s traffic congestion. In conclusion, the finding reflects that economic change

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brought by neo-liberal policies has political and social consequence, where as, economic change
is, itself, viewed here as the consequence of political and social as well as narrowly economic
forces (Rostow, 1961:2) – bearing in mind the three determinants of traffic are inter-causal and
interrelated.

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