Indonesian Political, Business & Finance News

Dreaming of Cheap Cars

| | Source: JAKCHAT
And Tempo editorializes that putting more cars on the streets would be a dumb idea.

Cheap Cars For What?
Editorial
Tempo Magazine No. 34/IX | April 21-27, 2009

Given the current state of the infrastructure, cheap cars are the last thing we need. Public transport is more important.

BEFORE it reaches the implementation stage, the plan to produce cheap cars should be abandoned. In a nation with annual car sales of only 500,000, without satisfactory improvements to the supporting infrastructure this program with be nothing more than a manifestation of “big ambitions, limited resources”.

Just look at the streets around us, especially in cities in Java. It is rare to see a pleasing sight. Traffic congestion is everyday fare. Different types of vehicles - motorbikes, private cars, minibuses, buses - crowd the streets fighting for the chance to move and even depriving pedestrians of the right to use sidewalks. No one wants to be there, but none can avoid it.

It is clear from this situation what needs to be done: build more roads, or reduce the number of vehicles. Neither of these would be easy, but they seem to be the most sensible options.

The capacity to build new roads, no matter how much effort is put into it, will eventually run up against a brick wall. In Jakarta, for example, data from the Transportation Department shows that roads are expanding only by around 0.01 percent per year, while over the last five years the number of cars and motorbikes has increased by 9.5 percent. After building underpasses and flyovers, of which there are now many - some of no use - will the administration now build underpasses under underpasses or flyovers over flyovers? The most realistic option is to reduce the number of vehicles.

The cheap car, the concept now being developed by the Transportation Department, is clearly not in line with this solution. The program seeks to push motorcyclists into driving cars and absorbing unemployment. But if this is achieved, it would only trigger more demand for cars.

This situation will create a vicious circle of traffic congestion. The demand for cars will never be reduced because there is no convenient alternative other than private vehicles. The more cars are sold, the more the congestion on the roads. Although there will be environmentally friendly technologies, the increase in fuel consumption (because they only cost around Rp50 million, there will be no switch to electric power) will remain unavoidable.

Rather than expend time and effort on studying this car concept, the government should look for ways to create a mass transportation system that is convenient, timely and integrated, especially in the major cities. In Jakarta, this type of transportation - which integrates railroads, buses and other suitable means - is a must.

It is indeed a matter of urgency to put in place a mass transportation system, in order to reduce the use of private vehicles, which make up 95 percent of all vehicles.

A cheap car may sound wonderful, at least in terms of public relations, which could raise our image, much like India, which sells the Nano car for around Rp25 million. It may be tempting from a business viewpoint. But the opposite could happen. Whatever the case, the plan is still useless. Cheap cars on the streets will only hasten the disastrous situation predicted for Jakarta in five years’ time: total gridlock.
Tags: business
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