Tue, 21 Oct 1997

Three-in-one benefits the poor

I would like to comment on the proposed ending of Jakarta's three-in-one traffic system. Critics of the system, who say the car owners beat the system by paying "three-in-one boys" to be passengers, are short sighted. They fail to note that the system is a perfect example of environmental and development economies.

The cost of a three-in-one boy is a genuine tax on cars, thus limiting their use and reducing damaging "greenhouse" gases. It also transfers money directly from the richest people to the poorest without the inefficiency of a state bureaucracy. Economists are always looking to enhance the rich-to-poor "trickle down" effect and the three-in-one policy is the best example of this yet discovered.

I can also attest that having lived previously in Lagos, the alternative odd-even number license plate system does not work. Rich Nigerians initially bought a second car, but then realized it was cheaper to bribe a licensing official for a second license plate. Other people registered their cars as taxis but the only fare-paying passengers were themselves.

An alternative for Jakarta might be to allow all owners of the Timor national car unrestricted entry into the business district as a way of further enhancing the national car program. I would suggest allowing owners of commercial category vehicles access with three passengers, ensuring that some trickle-down remains. All mid-price non-Timor vehicles should be forced to pay 10 percent of the value of their car as an annual access fee, and top-end vehicles such as Mercedes, Volvos and BMWs should pay 30 percent of the value. Exotic sports cars such as Porsches should be barred at all times.

It is important that Jakarta has a sensible traffic policy and I hope my proposals are taken with the seriousness they deserve.

WILLIAM KEELING

Jakarta