Is Road Pricing a Sustainable Policy? Jakarta Case

Abstract

Urban road pricing involves direct charging of drivers for the use of the road network, usually during peak periods. The main objectives for the introduction of a road pricing scheme, in a congested city network, include reduction of delays, environmental improvement and revenue increase. These objectives are closely associated with the concepts of sustainable mobility in urban areas with respect to social equity, economic efficiency, and environmental responsibility. There have been intensive discussions about sustainable transportation in Indonesia. In tune with the issue of climate change and the decline in the ability to provide fuel, this paper is intended to look at the perspective of road pricing from the standpoint of traffic flow, travel speed, emissions reduction, and energy consumption as well as pricing scheme. As pricing will be imposed for the Moslem community, it should conform with Islamic tax income which is for the benefits of poor, needy and less privileged people in the society. The conclusion drawn is that the frenzied application of road pricing will be able to improve traffic in Greater Jakarta but the sustainability of pricing should be adjusted with Islamic tax income.

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