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Jakarta Traffic Jams Cost $6 Billion Annually, Deputy Governor Says

Reza Hery Pamungkas
August 28, 2025 | 10:32 am
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A traffic congestion in East Jakarta on May 11, 2023. (B Universe Photo/Joanito de Saojao)
A traffic congestion in East Jakarta on May 11, 2023. (B Universe Photo/Joanito de Saojao)

Jakarta. Traffic congestion in the Greater Jakarta area is causing economic losses amounting to Rp 100 trillion ($6.1 billion) per year.

Jakarta’s Deputy Governor, Rano Karno, said that this figure was based on a study conducted by the National Development Planning Agency (Bappenas) in collaboration with JUTPI II (Greater Jakarta Urban Transportation Policy Integration) in 2019.

“Traffic congestion not only causes economic losses but also has a major impact on the quality of life of residents. The transportation sector is the main contributor to air pollution in Jakarta,” said Rano Karno while leading an assembly titled ‘Collaboration to Overcome Traffic Congestion’ at the National Monument area in Jakarta on Wednesday.

According to Rano, the economic loss is equivalent to six times the cost of constructing Jakarta MRT’s first phase, or about 4 percent of Greater Jakarta's gross domestic product (GDP).

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He explained that the Jakarta Provincial Government is continuously striving to tackle congestion through technological approaches. One such effort is the development of an intelligent traffic control system (ITCS) powered by artificial intelligence (AI). Currently, the system has been implemented at 65 out of a total of 321 intersections in Jakarta.

The provincial government claims that the implementation of ITCS has reduced vehicle waiting times at intersections by 15–20 percent. In addition, this system will serve as the foundation for monitoring vehicle taxes and exhaust emissions across the capital city.

Previously, Rano highlighted the imbalance between the growth of the vehicle fleet and road availability in Jakarta. According to him, road expansion only grows by 0.3 percent per year, far behind the growth rate of vehicles, which is the primary cause of congestion.

Rano also emphasized the importance of involving neighboring buffer regions such as Bekasi, Depok, and Bogor in collaborative efforts to ease congestion.

“We are inviting our colleagues from these surrounding areas to collaborate, because congestion in Jakarta also impacts their regions. This is why the governor initiated the Transjabodetabek program, to improve cross-regional connectivity,” he said.

He acknowledged that congestion cannot be solved overnight. However, he expressed hope that this collaborative assembly would serve as an initial step toward building a shared commitment to comprehensively address Jakarta’s transportation issues.

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