Yanto Soegiarto & Muhamad Al Azhari, Jakarta – Monday night's flooding and subsequent citywide traffic jam was a preview of Jakarta's future if no significant changes are done, business leaders said.

The traffic madness that plagued commuters after the skies dumped an unusually large amount of rain on Monday has businessmen worried over the future of the capital and offering private sector participation as a solution.

Suryo Bambang Sulisto, the newly elected chairman of the Indonesian Chamber of Commerce and Industry (Kadin), said the "situation gridlock" on Monday night was because of "stupidity" and the inclination to always seek to do things the easy way.

"We should learn from this, that we have to change from doing everything the easy way, especially when it comes to policies impacting the public at large," Suryo told the Jakarta Globe.

The best solution to the capital's infrastructure woes, he said, was to incentivise the participation of the private sector. "It will work. The toll roads and the monorail will be built soon if the private sector takes over," he said.

Erwin Aksa, chairman of the Indonesian Young Entrepreneurs Association (Hipmi), said Jakarta's infrastructure problems made it an increasingly poor place to live and do business. "If the government had enforced discipline, such disasters would not be happening" he said.

Jakarta remains a top destination for foreign investment, but as the population grows and vehicle sales soar, experts have predicted total gridlock by 2012 unless drastic action is taken. The traffic jams already costs the city about $1.4 billion a year in lost productivity, according to one study.

The government has announced various plans to tackle the traffic problems, including the construction of a mass rapid transit system, but little progress has been made.

James D. Filgo, a director at US company Consolidated Services International, said the excruciating traffic jams caused by heavy rains were cutting business productivity by 30 to 40 percent. He said the situation called for an official declaration of a "state of emergency."

"People are afraid to make appointments in the afternoon or evening," said Filgo, who also is a representative of the US Chamber of Commerce in Indonesia.

James Castle, founder of Jakarta-based business consulting firm CastleAsia, also said the private sector should be given a bigger role in the city's infrastructure.

"For Jakarta, obviously the priority should be the water-management system, sewers and drainage. After that, it needs an efficient mass transit system. The government should provide supportive policies to mobilize the money" from the private sector.