Jakarta includes congestion pricing in its Transportation Master Plan

According to Tempo, 18 Jakarta roads are to progressively have congestion pricing introduced, cover 174 kms of road.  Jakarta has been discussing congestion pricing for over eight years, and has trialled it with some success, but has not been able to develop sufficient support to introduce it in full.  Jakarta maintains its "odd-even" policy for number plate access into the central part of the city in the meantime.

Meanwhile, Jakarta has made tremendous efforts to improve the quality of alternatives to the private car in  recent years, spending a great deal on footpaths adjacent to key corridors and installing cycle lanes (63km by 2020) and major new public transport networks. This includes lanes for bus rapid transit, expansion of the city's metro and major upgrades of its long neglected commuter passenger rail network. It also integrated fares for most public transport including a flat fare for travel between modes.

This saw Jakarta win a sustainable transport award at the end of 2020. This matters because for congestion pricing in Jakarta to be a success, it needed capacity for alternative options and the city was particularly poor for active travel, but with Covid, there has been a significant increase in cycling and walking. 

There remain challenges for congestion pricing, including enforcement based on number plate recognition, but if implemented well, it could see a significant transformation for a city plagued by congestion, pollution and previously with very poor alternatives to driving.

Will Jakarta get congestion pricing?

The Jakarta Globe claimed that Electronic Road Pricing (ERP) will be operational on some roads in Jakarta by March 2019, but clearly this hasn't happened. What has gone wrong?

I've written a lot about Jakarta's attempts to introduce congestion pricing in recent years.  In order from 2010 to 2016:

-Is Jakarta about to introduce congestion charging?

-Jakarta to be first of five Indonesian cities to introduce congestion pricing

-Jakarta congestion pricing - what might it look like?

-Jakarta moving forward with congestion pricing

-Jakarta proceeding with congestion charging system UPDATE: May go for a simpler approach

-Jakarta finally proceeding with urban congestion charging

-Jakarta ERP (congestion charging) update: GPS under consideration

-Jakarta congestion pricing facing problems by charging only main roads

-Jakarta's congestion pricing programme is further delayed

Coconut Jakarta said Inrix's most recent report indicated Jakarta has the world's 12th worst traffic.

Jakarta Deputy Governor Sandiaga Uno now says it will be implemented after the Mass Rapid Transit (MRT - metro) line along Jalan Jenderal Sudirman to Jalan Medan Merdeka Barat is opened.  Coconut Jakarta also reports that Greater Jakarta Area Transportation Management Agency (BPTJ) head Bambang Prihartono has suggested charging for non-Jakarta registered vehicles to enter the city.  That may have some obvious appeal, although it would encourage commercial vehicles to register in Jakarta to avoid this (and provide a possible path for avoidance of private individuals registering vehicles through Jakarta based companies).  However, he is right to talk of ERP as the long term solution, that would enable mode shift to public transport if it is expanded sufficiently.

Where now?

Singapore's Straits Times says that 50% of vehicles in Jakarta come from outside the city, and that the first phase of the ERP scheme will be to charge for use on one road between two roundabouts - Jalan Jenderal Sudirman.  Phase Two would be an extension north along Jalan MH Thamrin.  Jalan Jenderal Sudirman already has bus rapid transit lane along much its length, and the MRT line is also under construction following that route.

Phase One (blue) Phase Two (orange) of Jakarta ERP (2018)

The choice of this route appears to be because it will parallel public transport options, as well as being a particularly congested corridor.  Care may need to be taken to ensure charging points minimise opportunities for diversion, otherwise nearby routes.    

However

The last report on the plan was to await installation of congestion pricing until Jakarta's metro system opens. The first phase opened on 24 March 2019 (the Red Line), but there are wider problems with implementing congestion pricing in Jakarta.

Jakarta's MRT (metro)

The main issue is that the tendering process for the system has been undermined by two of the three shortlisted bidders withdrawing (namely QFree and Kapsch, both well known for their experience in installing tolling systems) leaving only the Indonesian firm PT Bali Towerindo Sentra remaining.  One can only speculate about their reasons for withdrawing, but in doing so there is clearly insufficient confidence from the authorities to proceed.

The Governor of Jakarta has since indicated that it is "more important" to upgrade public transport than to introduce ERP, yet it is fairly obvious that the latter could help the former.  Even just introducing the single ERP corridor charge would make it much easier to introduce more rapid and frequent bus services on that corridor, and raise revenue to to improve transport infrastructure more widely.  The public transport goal is to get 90% of residents able to access either the metro (MRT) or bus rapid transit, with the current position being around 20%, but they could be introduced hand in hand.

There is another issue which is not getting much publicity, but is more fundamental to the success or failure of congestion pricing - the quality and reliability of automatic number plate detection to enforce ERP.

False number plates, and poor data linking vehicles to owners' addresses is a problem in Indonesia, which would make enforcement of ERP in Jakarta difficult.  This is a responsibility of the Police, who understandably are less enthused about addressing a problem which is more about traffic management than crime.

If the fundamental problem of fake number plates and an unreliable database are not addressed, then congestion pricing can't be implemented.  Simple as that.  As I've said before, if Jakarta can't implement free flow tolls on its existing tolled road network, it is not going to reliably introduce congestion pricing. 

No doubt reforming and upgrading both the number plate system, the enforcement of number plates and the database and processes for changing data on vehicle number plates is not easy in Jakarta, but it is going to be key to moving forward.  Whilst Jakarta embarks on upgrading its public transport network, it should move ahead on reforming this, use it to replace manual tolls on existing toll roads (which in itself will ease congestion on and approaching those roads), giving it a modern vehicle management infrastructure to introduce ERP.

Jakarta abandons 3-in-1, moving to 4-in-1 as congestion charging is delayed again

You may wonder what is going on in Jakarta as it seems on the cusp of introducing a Singapore style  ERP (Electronic Road Pricing) system, but as I wrote on 5 April, it has temporarily suspended its existing high-occupancy vehicle rule (known as 3-in-1, which is self explanatory) until May 14 because of concerns of child exploitation.

Now a website called Coconuts Jakarta (a new online news website chain that started in Bangkok) has suggested that 3-in-1 may be replaced by 4-in-1 in part because of the time that would be taken to implement congestion pricing in the city (the website suggests 1.5 years, which is a reasonably minimum in my view).   The Deputy Head of the Jakarta Transportation Agency,  Sunardi Sinaga, is quoted as saying it is one option once the 3-in-1 suspension is over, but 4-in-1 would only apply in the afternoon peak (presumably because the congestion is more severe during that time).  

As the report points out, unless the Police enforce laws against people paying others to sit in their vehicles (known as jokis - (jockeys)), which was a source of concern in the first place (as it is some of Jakarta's poorest seeking to make money from this, and some either rent their children out for this role or abandon them unaccompanied whilst they "jockey"), it wont make much difference.

Meanwhile, according to the Jakarta Post, the city has banned motorcycles on one area (Hotel Indonesia Traffic Circle from Jl. MH Thamrin to Jl. Merdeka Barat), which is surprising, as they are not the least efficient vehicles from road space terms, but has refuted rumours it may expand this ban further.  The report said the tender for ERP will be released later this year for implementation next year (which still seems ambitious to me).

It is not yet clear whether reliability of number plate recognition and accuracy of vehicle registration database details for enforcement have been addressed yet.

Jakarta's congestion pricing programme is further delayed: HOV rule to be temporarily suspended

The Jakarta Globe reports that ERP (Electronic Road Pricing) for the city remains a "pipe dream" even though only a couple of months ago it appeared the city was ready to procure a congestion pricing system that would pioneer the policy for Indonesia.  I've written extensively about it here.

The report says:

Jakarta Governor Basuki Tjahaja Purnama said the regulations and payment procedures for ERP, where cars pay to pass certain streets using an onboard unit, were still not ready, though the technology and infrastructure are available.

However, it would appear it isn't just regulations and payment procedures (which should not be difficult):

"It's okay to suspend the three-in-one system, as long as a replacement is ready," the Jakarta Police's traffic unit head Adj. Sr. Comr. Budiyanto said. "But the problem is, there are still so many things to prepare for the [implementation of] ERP, including human resources, infrastructure, the legal aspects and databases related to it."

In other words, without either the Automatic Number Plate Recognition (ANPR) systems to reliably identify Indonesia's less than easy to read number plates, nor a database with sufficient accuracy to identify the names and addresses of vehicle owners (and to update this when ownership changes),  it is difficult to implement electronic road pricing.   This sample number plate from Wikimedia has various dimensions that reduce the reliability of ANPR technology, which should achieve accuracy levels of between 83% and 98% in the latest implementations of such systems.  The small numbers at the bottom of the plate are likely to prove difficult to read, and with a light on dark plate, with characters close to the rim increase the scope for inaccuracy compared with this UK sample plate.  

I wrote about this several times before, and it astonishes me that Jakarta hasn't focused on addressing this issue and the number plate database issue.

Meanwhile, the Jakarta Post reports that the city appears about to abandon its "3-in-1" rule temporarily, which essentially make two major roads in central Jakarta all high occupancy vehicle (HOV) routes (that's the whole road, not just a lane).   It applies from 0700-1000 and 1630-1900 weekdays.

Jakarta 3 in 1 network highlighted

The purpose of the rule is to reduce congestion, by requiring cars to carry three people, but it has spawned an informal industry of people who queue up near the boundaries to be paid to fill cars.   The proposed ERP congestion pricing system is meant to replace the rule, but "3 in 1" is accused of spawning child exploitation, as "joki" (jockeys - people who hire themselves as passengers) are blamed for running child begging, street performance and rental rackets.  

It is to be suspended for a week for city officials to assess the impacts, both on child exploitation and traffic.  The Jakarta Globe says the problem is that a few jokis are drugging their young children whilst undertaking their trade, and carry them to increase the chance of being picked up by drivers (drugging the children means they are not a nuisance).  They get US$1.50 per trip, which in Indonesia is more than the average hourly income.  Australia's ABC has more on this. However, the Police oppose the trial because of the impact on traffic congestion, although it will enforce bus lanes to ensure they continue to operate relatively freely.

UPDATE: Antara reports that the 3 in 1 policy is being replaced by enforcement of the odd-even number plate policy (which rewards those with two cars), but also claims that the Governor now wants ERP implemented.

It describes implemention of ERP geographically as follows:

According to the plan, the ERP implementation area will be divided into three sections. Area I will cover the Blok M-Kota Station, Jalan Gatot Subroto (Kuningan-Senayan), Jalan Rasuna Said-Tendean Tendean-Blok M, and Jalan Asia Afrika-Pejompongan.

Area II will comprise Dukuh Atas-Matraman-Manggarai-Jatinegara-Gunung Sahari and Kampung Melayu-Casablanca-Jalan Prof. Dr.Satrio-Tanah Abang.

Meanwhile, Area III will include Grogol-Roxi-Harmony, Tomang-Harmoni-Pasar Baru, Cempaka Putih-Senen-Gambir, Cawang -Pluit -Tanjung Priok, Cawang-Tanjung Priok, and Sunter-Kemayoran.

Tempo reports that the ERP rates "will" start at  30,000 Rp (US$2.28) raising to 50,000 (US$3.80) if congestion remains, although it could be free if traffic is temporarily diverted into ERP charged areas.  A 200,000Rp (US$15.21) deposit for the vehicle OBU will be required.

Of course, the problem of enforcement remains, the question of what happens when someone doesn't have an ERP OBU has to be addressed.

Jakarta congestion pricing facing problems by charging only main roads

The Jakarta Post reports that the city's planned Electronic Road Pricing (ERP) congestion charging system has been delayed, for governance reasons.  It had previously wanted to introduce the proposal by the end of 2015, which seemed ridiculously ambitious. 

The "ERP management unit" (with the acronym BLUD) has to be set up first, which of course makes perfect sense, and it apparently will be established in July.  Following that establishment, tenders for the design, installation and operation of the congestion pricing scheme will be let.

However, I'd urge some caution.  It would make sense for the ERP management unit to be bedded down and establish its objectives and procurement strategy before jumping into procurement.

As part of that the report notes

Korlantas chief Insp. Gen. Condro Kirono said police were gathering vehicle data for the ERP electronic registration and identification (ERI).

“We have held workshops with police offices and have supervised their digital data collection,” he said. 

A key element of any congestion charge will be reliable identification of number plates and associating plates to owners who can be billed/fined as appropriate. This is already proving to be a problem. 

The proposed congestion pricing scheme fits into the vision of Jakarta as a "Smart City" although that "Asia One" article weirdly thinks that 4,800 CCTV cameras will help this, when it really has little to do with it (except perhaps a related function of monitoring traffic volumes)

A substantial public marketing campaign is proposed to be launched in September/October, but it does have some major problems as Asia One news reports (includes TV report in English):

One of the challenges facing the implementation of ERP concerns motorists using small shortcut roads. Jakarta has a complicated network of roads which includes small shortcut roads.

The provincial government is well aware that motorists may try to bypass the ERP by using shortcut roads. But while taking such a route may save some money, it may not save time because during peak hours shortcut roads are even more congested.

This of course, is the key problem with proposals to charge only main roads.  There effectively needs to be a cordon put in, or parallel charges introduced for alternative routes.

In addition to pricing, it is useful to take some of the advice from Widya Anggraini, a Jakarta-based urban planner, in this article by City Metric, particularly addressing sexual harassment on public transport and ensuring pedestrian and bicycle access is improved.  This is clearly an important mode now and Jakarta should avoid the mistakes of some other developing country cities in letting these modes be neglected, which of course helps to encourage car use.  Walking and cycling for short trips is an obvious answer both in encouraging efficient use of road space, but also reducing pollution and improving the liveability of the city.  Development does not mean abandoning active modes.

Jakarta ERP (congestion charging) update: GPS under consideration

I've written several times about the plans for Jakarta to have what it called ERP (Electronic Road Pricing) very much modelled on the Singaporean approach.  There is broad political agreement of the merit of introducing charging on existing roads to manage congestion, to replace the current high occupancy rule (a minimum 3 occupants) for certain main roads.  That system gets abused as people offer themselves "for hire" to make up the numbers on roads approaching the "HOV road" zones.   After trials it was intended that the first stage of an operational system would be in place this year, with the law having already been amended to allow for its implementation.

Jakarta embarked on a trial of two DSRC systems, one with Kapsch and another with Q-Free reported here.  One of the big issues was non-standard number plates being difficult for ANPR cameras and systems to recognise.  

The two trial DSRC charging gantries are in place at Jl Jenderal Sudirman and Jalan Rasuna Said (installed by Kapsch and Q-Free respectively).

Jakarta ERP trial corridors

In October 2015 it was reported in Tempo that the Jakarta Governor was considering moving beyond DSRC type technology and embracing GPS systems to trial for the proposed electronic road pricing scheme.    His chief concern is the cost of installing gantries vs. installing GPS based OBUs, saying that each gantry costs 1 billion rupiah (US$73,000), implying it would be cheaper to implement distance based charging.  

So now it appears the programme has been delayed not least because of the Governor's interest in investigating the viability of using GPS technologies, but also because of concerns over how enforceable the system would be with the current generation of number plates in Indonesia.  The Jakarta Post reported a month ago that implementation has been delayed until 2017 with a decision on supplier by the end of 2016 (a rather short implementation time which would tend to preclude a large scale implementation geographically.  

The minimum charge is expected to be 30,000 Rupiah (US$2.21) to use charged roads at peak times. 

Proposed Jakarta congestion charging / ERP routes

The Google Earth image above depicts the routes proposed for full implementation of congestion pricing, covering major inner city corridors.

I said it's about number plates!

The Governor was quoted as saying:  “The main obstacle is legal enforcement — how to catch vehicles with non-Jakarta STNK [vehicles registration fee documentation] that violate the ERP. However, I think it will be easy to monitor it through closed-circuit television [CCTV]".  

So the issue is having number plates that are non-Jakarta issued, which is really about access to databases for others.  Yet he is wrong to say it can be monitored through CCTV reliably or cheaply.  CCTV is not ANPR, and would be unlikely to deliver the clarity of resolution for effective enforcement.  

I had highlighted number plates and databases for number plates as an issue on this blog a few years ago.  Indonesia (like many other countries) needs to establish key enablers for such systems, which includes either mandating electronic vehicle ID or having a number plate system that can be detected and corresponds with a high level of accuracy to the names and addresses of vehicle owners to allow for enforcement.

Jakarta finally proceeding with urban congestion charging

As has been discussed previously on here, Indonesia's capital has been looking at replicating the success of its neighbour, Singapore, in introducing urban road pricing, even using the same terminology - Electronic Road Pricing (ERP).  It has been getting serious consideration for over four years now, but has been subject to some delays in part because the aspiration and ambitions for road pricing were clearly too big, especially given the timescales proposed for introduction.

Jakarta itself has an enormous congestion problem, with a population approaching 10 million, it has suffered from poor public transport and rapid economic and population growth.  Jakarta is probably the largest city by population with no urban metro rail system (although it does have a commuter rail system, it largely uses secondhand rolling stock from Japan, and carries around 700,000 passengers per day).  

The Jakarta Post now reports that tenders will be called to supply an electronic road pricing system (just like Singapore called the ERP), with the hope being that it can be in operation before the end of 2015 at pilot sites.

The city has already involved Kapsch and Q-Free in technical trials since 2014.  The proposed pilot charge will be applied to two corridors.  I've indicated these out below, both appear to just cross the inner ring tollway.  

Jakarta ERP pilot corridors

However, these are only short corridors in the context of greater Jakarta as can be seen below, so it really is a pilot:

Greater Jakarta with proposed pilot congestion priced roads in blue

The law passed two years ago to support the introduction envisaged a first stage that was somewhat larger:

Proposed first full stage of Jakarta congestion pricing

This would focus on one of the busiest corridors into central Jakarta and some parallel routes. The system is intended to replace the "three-in-one" effective HOV requirement for such roads, which means that at peak times it is compulsory for cars on those roads to have a minimum of three occupants.  That will increase the flexibility in using the roads, but should also better target compliance based on payment.  It also will avoid the current abuse of the HOV system whereby entrepreneurial "jockeys" charge motorists Rp 25,000 (US$1.95) to Rp 30,000 (US$2.34) to make up the number in their cars (even when roads aren't market oriented, market solutions to individual problems appear).

Successful technology trials to expand

Technology trials using  conventional DSRC technology have been successful, with 95-98% accuracy reported, although given DSRC ought to achieve 99% it is unclear why it should be so low.  The claim is that with very heavy congestion, number plates are not always detected, although it should not be a problem for virtually all DSRC vehicle tags to be detected.  One of the key issues for Indonesian number plates is the lack of a standard typeface or "font" used for the numbers and letters.  This is a classic example of one of the enabling issues that I've referred to before that needs resolution before such systems can be introduced.

Up to 50 vehicles were installed with equipment from Kapsch, Q-Free and Watch Data for a technology trial last year.  The trial will relaunch on the pilot routes in March 2015 with equipment from only Kapsch and Q-Free according to the Jakarta Post report.  Kapsch and Q-Free are widely known in the tolling industry, both being well known and established suppliers of electronic free-flow tolling systems using DSRC technology.  

This report from ITS International also indicates that the trial included a system from Q Free that is more sophisticated than the standard DSRC tag and beacon operation familiar in many other countries, but involved deduction of credits from a prepaid smartcard.   This parallels the Singapore ERP system, which enables motorists to pay anonymously, as long as the smartcard in the onboard unit has sufficient credit to cover the toll. 

Strategy to use surplus revenue to expand public transport

A separate management unit within the Jakarta Transportation Agency has been created to manage the revenues.  I would hope that it spends considerable time development the enforcement and compliance system, which can be the weakness for any such system.

Net road pricing revenue will be used to increase public transport services, which in Jakarta suffer from the lack of any underground metro (although one is now under construction), and so is focused on bus services and a series of commuter rail lines.

It's notable that the Jakarta Post report includes comments from various freight haulage and courier business representatives which oppose ERP, because they can only see the cost involved.  However, this is where some effort needs to be put into ensuring the pricing and implementation actually deliver improvements to travel times, and so significant savings for road users.  

There is clearly potential for Jakarta to have a network of priced roads, combining both the existing toll road network (which includes manual toll booths) and charging existing roads, but to make it successful it will need to be careful in setting prices and how it uses the net revenues.  I'd suggest that some of the latter should be put into targeted congestion relief projects whether it involves roads, public transport or even improving the environment for pedestrians and cycling traffic.  

What's next?

Further trials, but a tender will be developed for implementation of an actual pilot that will involve users having to pay to use at least part of the roads I have highlighted above.  In due course it may expand step-by-step, like the Singapore system, but first it has to be piloted with real users, to see what the reaction is and to prove it can be successful.  I can only hope that Jakarta gets the pricing right, the products right, the network planning right and the compliance/enforcement right to prove the concept in practice.  Introduction by January 2015 may yet be too ambitious.

Earlier proposals for a network of charged roads in Jakarta

Footnote: Curiously, one measure that will have a long term impact on congestion is that Indonesia abolished virtually all subsidies on fuel on 1 January 2015, taking advantage of rapidly declining oil prices (Indonesia, once a major oil exporter is now an importer).  The drop in prices has meant that even after the abolition of subsidies, retail prices remain lower in January than they were in December.  As prices rise over time, then growth in traffic can at least reflect market prices for fuel.

Past articles

- Is Jakarta about to introduce congestion charging? (2010)

- Jakarta to be one of first five Indonesian cities to introduce congestion pricing (2011)

- Jakarta congestion pricing - What it might look like (2011)

- Jakarta moving forward with congestion pricing (2013)

- Jakarta proceeding with congestion charging but may adopt simpler approach (2013)

Jakarta proceeding with congestion charging system UPDATE: May go for a simpler approach

According to the Jakarta Post, the city will proceed with the first stage of a congestion charging system (called electronic road pricing because of its parallels to the Singapore system) in early 2014.  Jakarta Governor Joko Widido ideally would like to see it operational in the first quarter of 2014.  However, the Jakarta Transportation Agency believes a bylaw needs to be amended before there is full legal authority to start collecting tolls.

The system is expected to be very similar to that in Singapore, primarily because the proximity has enabled officials to observe the results of the Singaporean system, which is clearly the most comprehensive and successful such operation to date.  All motorised vehicles (except motorcycles, and there is some debate about whether they also should be included) using the charged roads, would need to have a DSRC transponder installed with a read-write smartcard inserted, that would deduct stored value from the card every time the vehicle passed under a charging gantry.

Prices are expected to vary by individual roads, and have different charging periods.   Previous plans to introduce a controlled zone based on only allowing vehicles with odd or even numbered licence plates are to be scrapped.  

In advance of the new system, an unspecified number of new buses are to be introduced, with the intention that the charge will first apply to the Rasuna Said area because of the busway corridors that exist through it. The initial charge will be Rp. 21,000 (US$1.87), but one report indicates that prices could be lowered if traffic levels drop by more than is necessary to achieve free flow traffic.  A previous post I wrote described where it looked like charging would be introduced.

Interestingly, it appears that there is strong political interest in having a state wide electronic vehicle identification system in place by 2015, to enable rapid, accurate and effective enforcement of traffic laws. Jakarta's electronic road pricing system will be compatible with that. 

I am highly sceptical that such a system can be operational by early 2014, with the testing, distribution of transponders and enforcement processes fully effective in such a time, but I thoroughly applaud the decision to move forward.   Jakarta has chosen a bold approach, but I predict some big issues around enforcement and managing the changes in traffic patterns that come from an incremental introduction of such charges.   It may have been better to await the implementation of the electronic vehicle ID programme, as the ability to more readily enforce traffic laws (and deter and remove non-compliant vehicles), may deliver some useful gains in reducing congestion.

Nevertheless, if Jakarta can make this work, it will be the largest city in the world with such a road pricing system, given its metropolitan population of over 25 million people.

UPDATE:  It would appear that the complexities of introducing a Singapore style system in less than 6 months are causing some concern, as a report from the Jakarta Post seems to be indicating a partial backdown, as there is now some interest in introducing a "manual" system rather similar to the original Singapore Area Licensing System that was introduced in 1975.

What is proposed is holographic stickers for monthly or annual access to the city centre, essentially an urban "vignette".  This would be far simpler to implement, although the enforcement would be labour intensive, requiring a large number of enforcement officers targeting parked vehicles, or visually identifying vehicles crossing cordon points and pursuing them for fines (or sending them violation notices).  It is thought the idea may be implemented once 800 new buses are added to the urban fleet, allowing for the expansion of services.  The article suggests "scanners" could be used at parking lots, but this is far from tried and unless the stickers had some sort of RFID device (and it was illegal to install them incorrectly, and it was possible to read a number plate of a vehicle that didn't have one), this seems quite an unwieldy approach.

It is suggested that buses to the charged area could be free, but meanwhile the "vehicle transfer fee" (a tax on transferring ownership of a car) is to be increased to 20% of the vehicle's value.  I'm unsure what that will do other than make a small difference to the cost of ownership, and encourage people to continue to operate older cars.  

What all of this implies is some mismatch between decision-making and good quality advice for the authorities.  Yes, Jakarta could implement an urban vignette, but the fundamental problem of any system - enforcement will be little easier with that compared to an electronic option.   It would appear that there ought to be a rethink, and perhaps some more consideration that Jakarta cannot simply transplant Singapore's success.

Jakarta moving forward with congestion pricing

The Jakarta Post reported that Jakarta Governor Joko “Jokowi” Widodo, has said that the Government Regulation regarding the financial and taxation status of electronic road pricing (ERP - the term being used in Indonesia to describe urban congestion charging) has been signed.

In 2011, a regulation on traffic management and engineering was signed to facilitate ERP, now with there being legal approval at the financial level, there are no legal barriers to implementation. 

The Jakarta Transportation Agency (which has an almost impenetrable website) has said that work will start on the design and concept, including establishing where and by how much motorists will pay.  The current talk is of implementation in 2014 according to the Jakarta Globe.

Electronic Road Pricing will replace blunt HOV rule at peak times

The intention is that ERP will replace the current vehicle rationing system in place in parts of Jakarta, this is essentially a peak time HOV system that requires all cars to have 3 or more occupants.   It applies to specific roads between 0700-1000 and 1630-1900 on weekdays.

This has resulted in entrepreneurial Jakartans standing beside the roads approaching the "3-in-1" zone charging a small fee for hitching with motorists.  The Jakarta Globe has an article about the "Jakarta Jockeys" as they are called, typically charge Rp.15000 (US$1.54) each to be the third (or even second and third) occupants of cars driving into the restricted zone.  Police officers currently enforce the HOV system on sight, issuing fines of up to Rp.1 million (around US$103) for violations.   The roads the system applies to get revised regularly, but the whole system will disappear when ERP is introduced.

The scheme will also replace the odd/even vehicle demand management system that was just introduced in March 2013.  That system restricts vehicles with odd or even number plates from entering certain areas at peak times on specific days, essentially alternating access during weekdays to reduce congestion.  

ERP will contribute to major reduction in congestion

ERP is intended to be the major contributor to a target of reducing traffic delays by 40% by 2014 according to the Jakarta Post.  Apparently only 40% of time spent on the roads by commuters is spent moving.  56.8% of trips into Jakarta are undertaken by car.  Traffic has been increasing by 11% per annum, but road capacity by 0.01%.  

Beyond the urban congestion charge, tough enforcement of illegal on-street parking and on-street vendors on major routes will increase the usable capacity of those roads.  The city and Indonesia itself is loathe to ban people from buying vehicles, but may also consider other measures to restrict vehicles (e.g. banning even or odd numbered licence plated vehicles from certain days).

I wrote previously about where I thought it might be implemented.

Possible first stage of Jakarta Electronic Road Pricing

Blue is Phase 1, Yellow Phase 2 and Red Phase 3 of proposed Jakarta congestion pricing

The city has stated that the prices would likely be in the range of Rp. 6500 (US$0.67) and Rp. 21000 (US$2.16) would be adequate to make a meaningful difference to congestion, prices would vary according to time of day, size of vehicles and location, with higher prices for the most congested routes and crossing points.  The expectation is that a mix of individual routes and cordons will be charged, it is worth bearing in mind that Jakarta has quite a few (manual) toll roads, so is not unfamiliar with road pricing.  There are separate concepts to adapt Jakarta's toll roads towards fully electronic free flow technology, both to address toll plaza congestion and to allow for more dynamic, peak pricing.

"The administration said that the provisional trip charge reflected inflation and economic growth and was based on a survey of motorists and the tolls charged by turnpikes and ERP systems in other countries."

The expectation is that the system will resemble the Singaporean one, with a DSRC type system with on-board units required for all vehicles driving on the charged roads, and prepaid smartcards inserted in them that can be topped up at various retail outlets.  Of course it will also require extensive number plate recognition based enforcement.  

Decisions on exact implementation have yet to be announced.

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The Jakarta Globe reports that Citra Marga Nusaphala Persada, the privately owned infrastructure firm, is planning to spend around US$200 million (Rp.2 trillion) on new projects.  It has a 62.5% share of a a 22.8-kilometer toll road, connecting Antasari, in South Jakarta, and Depok in West Java.

Philippines - Call to scrap VAT on tolls and subsidies for private toll roads

Business Mirror reports that Senator Ralph Recto has called for an end to the 12% VAT on tolls to ameliorate expected increases in tolls.  He suggests this would be preferable than plans to subsidise more toll roads to encourage private sector investment.  At present toll road operators have to apply for increases in tolls from the Toll Regulatory Board and are expecting to increase tolls by 10-33% this year.  His view is that if toll road operators could price the roads to generate a return that they could fully recover, the need for subsidies could be avoided.

South Africa - SANRAL CEO calls for acceptance of court decision

Engineering News reports that the South African National Roads Agency Ltd. Chief Executive, Nazir Alli, has called for opponents to tolling to "accept" the decision by the Constitutional Court to set aside the "interim interdict" granted to the Opposition to Urban Tolling Alliance (a lobby group opposed to tolling urban roads in the country), stopping tolls on the Gauteng Freeway Improvement Project (GFIP).

He said that without tolls, there wouldn't be the money to pay for major road improvements and claimed that the money for roads would need to involve cutting subsidies to public transport instead.   He claimed that government did not have enough money to pay for building and upgrading all of the roads required, and that much of South Africa's roads are not tolled.

USA- New York  - Could New York introduce congestion pricing more readily now?

Keystone politics points out that Manhatten now, effectively, has a cordon of automatic number plate recognition cameras, on all bridges, run by the NYPD.  So, perhaps, the costs of congestion pricing may be slightly less than otherwise thought?

USA - Texas - Groups urge boycott of USA's fastest toll road

Texas SH130 is now the USA's fastest road with a speed limit of 85mph, but the website of TV station KXAN reports that groups "Texans Uniting for Reform and Freedom" (TURF) and "Texans for Accountable Government" (TAG) are urging motorists to boycott the road.

Opposition appears to be based on:

- Safety fears at the high speed limit;

- Little efforts taken to avoid feral hogs from being a collision risk;

- Xenophobia (because the road is owned by Cintra, which is of course Spanish).

TURF is a contradictory organisation, that is opposed to tolls because roads "should be free".  It claims to "work tirelessly to secure a pro-freedom, pro-taxpayer, fiscally solvent, freely-accessible public road policy".  Quite how making taxpayers pay for roads they don't use, and opposing user pays is pro-freedom and pro-taxpayer, is rather curious.  Indeed forcing taxpayers to pay for something they don't use is quite socialist, opposing privately owned roads is as well.   I can empathise with concerns around eminent domain and improving the quality of government spending, but opposing Cintra because it is foreign is simply mindless nationalism.  Should foreigners stop buying goods and services produced by Texan firms?

TAG has a broader political focus saying it is "dedicated to safe guarding individual liberty, protecting personal privacy and property rights, election integrity, safe water, and electing representatives, not bureaucrats, to office", but it was far from easy to find anything on tolls on its website.

News briefs - Australia, Denmark, Indonesia, Italy, USA

Australia - Heavy vehicle charges review starts

Transport and Logistics News Australia reports on how the National Transport Commission is consulting on proposed changes to the heavy vehicle charges system (most of which are about how the charges are calculated).

The article is perhaps more interesting for its summary of how Australia charges trucks to use its roads. It is not road pricing or tolls, but a reasonable means of trying to be as efficient as possible in using fuel tax and ownership taxes.

Rather than the widely used non-system of political/bureaucratic guesses as to what might be charged, it involves calculating costs attributable to heavy vehicles, costs attributable to all vehicles and then setting charges to recover from heavy vehicles their share of infrastructure costs. 60% are recovered from fuel tax and 40% from vehicle ownership taxes.  Fuel tax is collected at the Federal level, but ownership taxes at the state level.

The principles applied are as below:

• Full recovery of allocated infrastructure costs while minimising both the over and under recovery from any class of vehicle;
• Cost-effectiveness of pricing instruments;
• Transparency;
• The need to balance administrative simplicity, efficiency and equity (e.g. impact on regional and remote communities/access);
• The need to have regard to other pricing applications such as light vehicle charges, tolling and congestion;
• Ongoing cost recovery in aggregate;
• The removal of cross-subsidies between vehicle classes.

Now without distance and weight based charging, the system is going to be very much second best, but this system for setting charges is more advanced than that used to set charges in much of North America and Europe.   It is, at least, based on setting clear objectives with the need for transparent economic analysis to be used to base charges, and it does provide a framework which could be easily adapted to weight/distance based road user charging.

Denmark - Environmental Economic Council calls for road pricing to replace ownership and purchase taxes

The Copenhagen Post reports that the head of Det Miljøøkonomiske Råd, the environmental economic council, Hans Jørgen Whitta-Jacobsen, has suggested replacing the extortionate vehicle ownership taxes with a distance based road pricing system.  Vehicle purchase taxes cost 105% of the purchase value of a car up to 79,000 DKK (US$13,778) and 180% for every Kroner of value above that.  This imposes an enormous tax on the purchase of a new car.   Ownership taxes start at DKK120 (US$21) for the most fuel efficient diesel cars up to DKK15090 (US$2632) for the least efficient.  All of this makes car ownership expensive, and so doesn't target driving on the most congested roads (so penalises rural areas and those who without jobs accessible by public transit, walking or cycling).   His biggest concern is that such taxes discourage motorists from buying newer, more fuel efficient low emission vehicles.

Indonesia - PT Jasa Marga expecting increased revenue from growing network

The Jakarta Post reports that PT Jasa Marga, Indonesia's largest state owned toll road company, is expecting a 16.1% revenue increase this year, worth a total of US$671 million.   It has a network of 545km of toll roads with four new toll roads to open this calendar year (Nusa Dua-Ngurah Rai-Benoa road in Bali, Kebon Jeruk-Ciledug road in Jakarta, Gempol-Pandaan road in East Java and the Ungaran-Bawen road in Central Java). 

Jasa Marga is looking to facilitate up to 1.2 billion vehicle trips nationwide in 2013, 9.1 percent higher from the 1.1 billion vehicles last year.  80% of trips are on toll roads in greater Jakarta, indicating the sheer density of usage in that city.  Notable in the report is the roll out of the new e-Toll pass, which involves the use of a DSRC on-board unit, and a contactless smart card with prepaid credit that can be topped up.  Only 11% of transactions are at present using this technology, the intention is to lift this to 30% within two years.    Now the toll booths with this technology are not free flow, the tag activates the barrier arm, but the intention is to expand the number of toll booths that are electronically equipped to 111 by the end of 2013.   I would have thought that given the chronic congestion in Indonesia, lifting up take of electronic tolling to 50% of trips within two years should be a realistic goal.

Italy - Atlantia diversifies into airports

According to Reuters, Atlantia, Italy's largest toll road operator, is to buy Gemina, the airport operator best known for owning Aeroporti di Roma (which owns Rome's Fiumicino and Ciampino Airports).  The report said:

The deal will allow Atlantia, which also operates about 1,800 km of motorways in Brazil and Chile, to branch out into airport concessions in Latin America. It will not, however, generate meaningful cost synergies, a Milan-based analyst said.

USA - California- Santa Clarita (LA) looking at tolls to help fund new lanes

The website of radio station KHTS reports that Santa Clarita city (part of the LA metro area) is investigating whether to accelerate the widening of the I-5 freeway (the main northern freeway out of LA) between Highway 14 and Castaic by tolling the additional lanes.   The project would cost $310 million and the city has 75% of the funds needed to progress it (when divided over 30 years), and is hoping tolling the additional lanes may provide the remainder.  The proposal is to make the project into a PPP, with a private concessionaire recovering the cost over 35 years, using tolls on the new lanes only. The intention is for pricing to be dynamic maintaining a minimum speed of 45mph.  Curiously, the proposal maintains the HOT lane concept, by keeping the lanes free for vehicles with three or more occupants, which seems crazy if the key desire is to raise revenue.  The only purpose to keep HOT lanes is consistency, but beyond buses there is little good reason for new lanes to be free for any cars.   There is sense in applying the HOT principle if the lanes are underutilised HOV lanes, but why should well occupied cars occupying the same road space get access for free?  What evidence is there that this actually changes behaviour on any meaningful scale?  (besides a car with three people in it can split a toll three-ways surely)?

USA - Texas - Cintra wins concession for North Tarrant Express expansion

International Construction reports that Ferrovial subsidiary Cintra has won the concession to build the North Tarrant Express expansion in Texas.  Cintra is to be responsible for developing a 6.5 mile extension, with the state responsible for another 3.6 miles, but Cintra responsible for the tolling, operation and maintenance of the lot, with the total cost of both segments being US$1.38 billion.   The contract involves building two new managed lanes which will be tolled, but also the maintenance and operation of the untolled lanes.

The report says that "the Cintra-led consortium, NTE Mobility Partners Segments 3 LLC, also involves Meridiam Infrastructure and Dallas Police and Fire Pension System"

News briefs - Indonesia, North Carolina, Washington DC

Indonesia - Jakarta to get six new urban toll roads

Jakarta has serious congestion, which is estimated to cost RP46 trillion (US$4.7 billion) a year in delays, wasted fuel and vehicle wear and tear, with fuel being the biggest cost (no doubt because the value of time in the city is relatively low on a per person basis).  The city is developing bus rapid transit, has plans for a metro and is widening existing corridors, but its most ambitious plan is to build six new urban toll roads.  The intention is for them to be tolled, not just to pay for the high capital costs, but to manage demand, so that the inexorable demand for road space is tempered by having to pay for it.

However, it is controversial as the Jakarta Transportation Council, an advisory body, says it will have "no positive effect" on traffic, according to the Jakarta Post.   The projects will cost RP42 trillion (US$4.1 billion).  Objectors say it will encourage sprawl and pollution, harming the environment and public health, although it is entirely plausible that the roads could be priced and managed to minimise this.  Some argue that as the new roads are being built above existing railways or roads, that the railways should be expanded instead.   The project was advanced by the previous Governor, with one argument made that the city has a small proportion of land dedicated to roads at 6.2%, when the target is 12%.

I'm hardly in a position to judge on this, particularly as it is easy for middle income people in wealthy countries to pontificate about what is good for developing countries, and also because I am technologically neutral.  Roads are simply transport corridors, and as long as they are priced correctly, and the corridor managed well, there is no reason for them not to be positive for public transport, and to allow road space on the routes bypassed to be given over to pedestrians, cyclists, carts, and to properly regulate parking.

The six roads are shown on this Jakarta Post map:

The first phase of construction will include the 17.8-kilometer route from Semanan, West Jakarta, to Sunter, North Jakarta, and the 11-kilometer route from Sunter to Bekasi.

The second phase includes roads from Duri Pulo, Central Jakarta, to Kampung Melayu, East Jakarta, and from Kampung Melayu to Kemayoran, East Jakarta.

The third construction phase will link Ulujami, South Jakarta, to Tanah Abang, Central Jakarta and the fourth will connect Pasar Minggu, South Jakarta, to the Casablanca area in South Jakarta.

The state company PT Jakarta Tollroad Development is owned by multiple local companies, "city-owned enterprises collectively hold the majority of shares in JTD, namely, PT Jaya Real Property (22,5 percent), PT Pembangunan Jaya Ancol (20 percent), PT Jaya Konstruksi (16 percent), PT Pembangunan Jaya (9 percent), PT Jakarta Propertindo (7 percent) and PT Jaya Land (3.5 percent)."

Jakarta is also planning an electronic road pricing system to manage congestion, with legal approval for introduction reached in October 2012.   I will write more on that later.  However, I would hope that before that happens, that all toll roads in the city get converted to electronic free flow systems, which will be necessary for any form of congestion pricing in any case.

In any case, the Jakarta Post reports that it is now up to current Governor, Joko “Jokowi” Widodo, to decide on starting any of the new toll road projects.   

North Carolina toll road faces double billing controversy

According to the Charlotte Observer:

At least 800 drivers on the Triangle Expressway have been double-billed this month, paying electronic tolls twice for every trip, the N.C. Turnpike Authority says.

The problem is fairly obvious, motorists travelling with two tags both of which are getting recognised and generating a bill.  The NCTA has its own "Quickpass" as its product, but some motorists also have the EZ Pass tag, used across 14 states.

You see the Expressway is fully electronic free flow, but as of the start of 2013, it has been interoperable with EZ Pass, so there are customers with both units, and so are being billed twice.

The NCTA blames motorists for this, because the terms and conditions for its contract with customers using Quickpass is for only one tag/sticker to be in a vehicle at any one time.   However, as true as this may be, the system should have avoided this problem in its architecture.

For the system architecture should not allow two chargeable events to be attributed to the same number plate.  This isn't hard to manage, as the system ought to reconcile these sorts of events (and indeed this will become more common over time), so that while motorists should only use one device at a time, the system should not charge an identifed vehicle more than once in a specific interval.

Washington DC sceptical about congestion pricing but it's hardly surprising

There have been various reports of what is essentially a public opinion survey about transport policy, that came to the conclusion that people in Washington DC are most accepting of tolled lanes, and least accepting of distance based road pricing.  Really? It took money to figure that out?  The Brookings Institute research is interesting in as far as it shows considerable support (60%) for toll lanes - but beyond that it isn't anything that any expert in this area could not have expected.

There have been surveys about road pricing for many years in many countries, and the conclusion is pretty much always the same. The majority oppose paying more to use existing roads, and the more complicated the proposal they more resistant they are.   They like it better if more money (whose?) is spent on more public transport and other alternative modes.  

The acceptance of toll lanes is obvious, as they are optional.  The lesser support for some sort of cordon based pricing is because it would not be, and distance based pricing is always clumsily sold as some sort of tracking system, and there are no explanations made of how much people pay now with fuel taxes.

The errors in this work look like (from the reports) to be:

1.     It provided details with little rationale as to what the merits of them are;

2.     It gave people little confidence in what any of the options would deliver (why would anyone support paying more without understanding or believing that conditions could improve);

3.     It provided options without reference to replacing the gas tax;

4.     Those undertaking the survey appeared to be unable to answer core criticisms of the public, such as thinking that a cordon creates congestion just outside it.

It was undertaken using public forums.  Maybe the 20th century would like to get it survey technique back.  The busiest people or those with the least flexibility are unable to participate in such a manner.

Now I am pleased these issues are being discussed in the United States, it has taken long enough, as only eight years nobody talked about pricing existing roads.  However, it would be good for the debate for surveys like this to not occur.  

Are surveys undertaken about taxation policy, health policy, how to manage the electricity or telecommunications networks?  No.  Why would anyone presume that the general public - who can attend such meetings - are sufficiently well informed to react intelligently to what is presented to them?  More importantly, why aren't the lessons learnt from those who have tried to do this actually being applied in describing options and managing such processes?

Washington Examiner damns plan to "nationalise" Dulles Greenway

In a local editorial, the Washington Examiner describes plans to socialise/nationalise the Dulles Greenway as one that will "saddle Virginia taxpayers with this white elephant".  The plan comes from Virginia House Transportation Committee Chairman Joe May, (R-Leesburg).  So yes it is a Republican wanting the government to take over a private business, ostensibly to subsidise the users of that business. The report states the road loses US$25 million a year, which would effectively be transferred to taxpayers.  

The private owner, Macquarie Atlas Roads, would of course seek to maximise the price that it would extract from a willing buyer, and the continuing unprofitable nature of the road would be hidden in the state's public debt and general taxation.

It all seems absurd.  The whole point of private road concessions is to transfer risk, which is what has been done in this case.  The road has been built, the tolls are relatively high, but increases are capped by the concession, and the continued losses are born by the investors.   Far better for the motorists on the road to be effectively subsidised by the private owners (which is a transfer into the state from foreign investors) than from taxpayers.

ead more here: http://www.charlotteobserver.com/2013/01/31/3823197/nc-turnpike-authority-double-bills.html#storylink=cpy

News briefs - Australia, China, Indonesia, North Carolina, Ontario, South Africa

Australia - Chair of Australian Competition and Consumer Commission advocates congestion tax

According to the Herald Sun, chair of the Australian Competition and Consumer Commission (ACCC), Rod Sims, says that congestion charging, carefully managed, with some money used to support public transport, would make a meaningful impact on congestion and help provide funding to support infrastructure development.  He was making this point at a speech at the John Curtin Institute of Public Policy in Western Australia.

The ACCC is Australia's competition and consumer law enforcement body.  Although it has no specific role in its area, to have a highly placed officer of this body, responsible for consumer advocacy, raising this point adds to the growing number of views expressed in Australia supporting congestion pricing.

China - government declares certain public holidays to be toll free

China's introduction of toll free public holidays has had a mixed response according to state newspaper Global Times.

The report said:

The State Council approved a plan on August 3 to lift toll fees on passenger cars with no more than seven seats during four national holidays of Spring Festival, Tomb-sweeping Day, Labor Day and National Day.

This year's National Day holiday coincidently comes the day after Mid-Autumn Festival, which is governed by the lunar calendar, creating an eight-day national holiday. The State Council has ordered that passenger cars be allowed to travel free on the country's toll roads from September 30 to October 7.

Given China's toll roads are mostly privately owned, the issue has been whether the law has been consistently followed by the private road owners.  People were sceptical that the toll free period would come into effect, and the key reason it was introduced appears to be populism.

The toll free period started at midnight, resulting in large volumes of traffic travelling after that time.  It is not entirely clear from the reports, but it appears that few measures were adopted for traffic management at toll plazas, as the tolls still applied to vehicles with more than 7 occupants.  So vehicles would queue at toll plazas to be quickly flagged on.  One wonders why it would not have been easier to make all vehicles exempt and to have confined the traffic lanes at plazas to a number that avoided the use of plazas to cascade and then merge traffic flows.

Indonesian Government to create new toll road concession company

The Jakarta Globe reports that Indonesia's State Enterprises Minister, Dahlan Iskan, wants state construction company, Hutama Kurya, to become a toll concessionaire.

This would duplicate Jasa Marga, Indonesia's existing state-owned concessionaire, which reportedly has welcomed the move (presumably because it isn't about competition, but about capacity) and will help the company enter the sector.  The report claims that Hutama Kurya will be pursuing new toll roads in Sumatra

Meanwhile, another report notes that Jakarta TollRoad Development, a consortium that includes Hutama Kurya, has raised additional capital from PT Jaya Real Property (JRPT) and PT Jaya Konstruksi Manggala Pratama (JKON), which are part of the Pembangunan Jaya Group, the operator of Ancol Dreamland amusement park in North Jakarta.

JTD is a consortium of PT Hutama Karya, PT Pembangunan Perumahan (PP), PT Wijaya Karya (WIKA), PT Adhi Karya (ADHI) and PT Citra Marga Nusaphala Persada (CMNP).

One project that the firm plans to bid on is a 67-kilometer-long toll road that will connect all five of Jakarta’s municipalities. Based on previous reports, the project will require a total investment of Rp 40 trillion (US$4.19 billion).

North Carolina looking beyond fuel taxes

Business Journal reports that North Carolina Secretary of Transportation Gene Conti has said that the future of highway funding for the state is likely to be tolls and vehicle mileage tax, rather than fuel tax.  A key reason appears to be that the state has one of the highest fuel taxes in the US.  

Ontario to help build toll road for access to mining region

In some countries, developers ask the government to pay for and build the roads to gain access to land they want to develop.  In Ontario, the provincial government has said it will help do that, but will charge all road users to use it according to Wawatay News Online.  The project is intended to be a 300km new road to access an area called the "Ring of Fire" which is rich in mineral deposits.  It is not intended to be a public road, but a road purely for shifting cargo and for access to the mining developments, but is intended to be fully self funding by providing access to all of the adjacent mining claims.

South Africa - Cape Town and SANRAL disagree on tolls for new road proposal

IOL news reports on how a proposed new road in Cape Town, the R300, is showing up the split in policy on tolling in the country.  On the one hand, the City is promoting the road, but not as a tolled route. The City of Cape Town is against tolling on principle and is seeking a "new model" for funding major road plans.  However, national highways company, SANRAL is proposing that it be a toll road.  In any case, there isn't funding for the project at present.