Anushka Shahjahan – Jakarta Governor Joko Widodo's rejection of the so-called low cost green cars has received wide support as analysts unanimously agreed that such cars are not the solution for better transportation in the capital, and would only worsen the city's already clogged streets.
Experts said on Thursday that the solution for Jakarta's transportation problems was better public transport and changes in transportation regulations.
"I don't think Jakarta needs LCGCs. The city needs low-cost green buses," Jakarta Transportation Council (DTKJ) chairman Azas Tigor Nainggolan said with regard to President Susilo Bambang Yudhoyono's plan to offer tax breaks to buyers of low-emission vehicles.
Several analysts maintain that the central government's plan is unsuitable for Jakarta, suggesting the lower cost green cars would neither be environmentally friendly under the current circumstances, nor convenient.
"The transportation ministry expects people to shift from cars with higher engine capacity to cars with lower engine capacity," Indonesia Transport Society (MTI) chairman Danang Parikesit said.
"But our estimates show that it is the motorcycle owners who will purchase these cheaper cars," increasing traffic in Jakarta. More cars, due to the reduced cost, will not only increase traffic in Jakarta but also cause further pollution and environmental damage, in contrast to the actual "green car" concept.
According to Adrinof Chaniago, a public policy expert at the University of Indonesia, the term "green car" would mean nothing if the number of cars in Jakarta increased, because the cumulative pollution would be higher than it is now.
Azas added that in terms of implementation of the policy, the claimed eco-friendly cars would not contribute as much to environmental issues in Jakarta as it may seem in the policy-making process.
The promotion of the tax breaks has already prompted the launch of two eco-friendly models from Toyota and Daihatsu joining Honda in the market. The vehicles retail between Rp 76 million and Rp 120 million ($6,660-$10,500).
Joko has expressed opposition to the plan, saying the production of such cars would only add to the congestion in the city, adding the capital needs a comprehensive mass transit system, not cheaper cars.
There are already some 2.5 million cars in the capital, with some 1.1 million vehicles sold last year. This year's numbers are expected to remain flat.
The Industry Ministry said some 30,000 low-emission cars would roll off the assembly lines this year, accounting for some 3 percent of all vehicles sold in the country. The government plans to increase production by 10 percent next year.
Joko reiterated his opposition to the plan in a letter to Vice President Boediono earlier this week However, Boediono and other ministers have insisted that there was nothing wrong with the plan, telling Joko not to worry about the traffic jams.
Boediono said the central government would not wash its hands of the issue, and would work with the regional government to tackle the impact. "We can't prohibit people from buying cars," he said, adding the automotive industry was one of backbones of the economy.
Boediono said the government and the Jakarta administration needed to boost public transport and implement a high street tax for vehicles.
Nevertheless Joko's letter highlights another issue with the central government's plan to give drivers of low-emission vehicles tax breaks of up to 70 percent.
"Joko's opposition highlights that the central government has not consulted with local governments on this issue, which could negatively effect not only Jakarta but also cities such as Surabaya or Bandung" Danang of MTI said.
He said improvement of Jakarta's public transportation system was not possible without support from the national government because many people commute from outside the city.
"Public transport in Jakarta is across borders, so implementation of any policy would require the cooperation of all local governments concerned" he said, stressing that this would not be possible without the national government's active support.