Adianto P. Simamora, Jakarta – A study on the economic impact of building six new inner-city turnpikes has fleshed out the reality of the income gap between the rich and the poor.
The results of the study by Trisakti University economist Budi Santoso, which were made public Friday, showed wealthy people would get extra revenue of 0.2 percent from each rupiah invested in the project, while poor people would gain 0.0095 percent. The study took wealthy people to be those with a monthly income of more than Rp 21 million (US$2,234) and the poor to be those earning less than Rp 800,000 a month.
"The Jakarta administration is trying to push through the inner-city turnpikes project but it will only be advantageous for a certain group," Budi told The Jakarta Post.
The study used social accounting metrics to calculate the benefits of levying tolls on road use for people in different income brackets. The administration categorized residents into 10 groups, from people on Rp 21 million and over to people earning less than Rp 800,000 a month.
Budi said the economic impacts of building more turnpikes included faster access for private car owners, to reduced spending on spare parts and fuel. "However, commuters would be stuck using heavily congested roads with no tolls," he said.
Despite criticism from urban planners, transportation experts and environmentalists, the administration is determined to press ahead with the construction of six turnpikes linking Bekasi-Kalimalang-Kampung Melayu; Ulujami-Tanah Abang; Kampung Melayu-Tomang; Pasar Minggu-Casablanca; Kemayoran-Kampung Melayu and Sunter-Pulo Gebang to help reduce traffic congestion.
The total investment required to build the 85 kilometers of roads would be about Rp 23 trillion, or Rp 270 billion a kilometer. The project was offered to investors during the Infrastructure Summit in Jakarta last year.
Budi said the project would provide significant benefits for investors and other sectors, including the automotive and banking industries.
"It's a golden business opportunity, they (investors) just can't resist all that easy money. The big question is, where do the city administration's allegiances lie, with the people or certain groups?" Green activists are dead against the idea of building more turnpikes, saying it would only convince people to drive themselves to work, rather than commute.
They said the increasing number of private cars on the road would worsen traffic congestion and air pollution in Jakarta, the world's most polluted city after Mexico and Bangkok.
The administration is prioritizing the development of an integrated transportation system to encourage people to leave their cars at home and take the bus, the train, the monorail or the MRT. The latter two of which are not built yet.
In 2004, at least 2.5 million private cars and 3.8 million motorcycles traversed the city streets every day, compared to 255,000 units of public transportation.
The administration expects the number of private cars on the road to increase by 12 percent a year, which would far outweigh the number of roads being built. It predicts complete gridlock by 2014, if steps are not taken to improve the situation.