rayestu

There have been quite a heated debate going on regarding the recent Low Cost Green Car policy, a tax cut on cars which allows carmakers like Astra and Indomobil to come up with a line of under Rp 100 million cars. Those who oppose think the policy would certainly make traffic congestion in Jakarta even worse than the already dreadful state it is now. Those who support think it might be a way to let less well-off Indonesians to fulfil their dream of owning a car. As the debate gets ideological, I'm going to put on my libertarian coat and try to offer a free-market solution to the congestion problem.  There is a big mismatch in the transportation system in Jakarta, whereby automobiles are largely private while roads are largely public (toll roads make up for less than 5% of total road length). The LCGC bill simply further liberalised the the automobile industry, benefiting consumers, which in any other industry would be a good thing under libertarian perspective. However, as roa