://www.thejakartaglobe.com/business/motorbike-sales-in-top-gear-adding-chaos-to-congestion/394932

Motorbike Sales in Top Gear, Adding Chaos to Congestion
Dion Bisara & Irvan Tisnabudi | September 06, 2010



They are cheap, fast and easy to obtain. To their owners they are the perfect 
solution to Jakarta's traffic, but to most other commuters they are just 
another headache. They are motorcycles, proliferating at such an astonishing 
rate that they are starting to become part of the problem when it comes to the 
capital's notorious traffic congestion. 

Thanks to a booming economy and a flood of easy financing, motorcycle sales in 
Indonesia have exploded over the past decade, rising 1,000 percent since 1999. 

According to the Indonesian Motorcycle Industries Association, fewer than 
500,000 motorcycles were sold in the country in 1999, compared with an 
estimated 6.4 million expected to hit the roads this year - including 20 to 30 
percent of that total on Jakarta's already clogged streets. 

The reasons are simple. Motorcycles are cheap to buy and maintain, and 
financing can be had for the asking. In addition, they can cut the average 
commute in half or less, a not-insignificant benefit in Jakarta, where 
unreliable and relatively costly public transportation combines with 
ever-worsening traffic congestion to add to the appeal of motorbikes. 

Darmaningtyas, executive director of the Institute of Transportation Studies, 
said motorcycles have become popular because public transportation is not 
reliable, comfortable or safe enough, while motorcycles are relatively cheap, 
even compared to public transportation, and can move quickly through heavy 
traffic. 

"For example, it only takes less than Rp 10,000 to cover the distance from 
Jalan Sudirman to Depok by motorcycle. Using public transport, it would be 
double that amount, and also take longer to arrive at your destination." 

Just ask Fransisca Rini, who works at an insurance company. She is considering 
buying a motorcycle - already her main mode of transportation. 

"I prefer to take an ojek [motorcycle taxi] to work because it's fast. It takes 
me 1.5 hours to go to my office in the morning by bus but only 45 minutes by 
motorcycle," she said. 

But perhaps no factor is as responsible for the proliferation of motorcycles as 
the growth of consumer finance. 

A Rp 10 million ($1,100) cycle can be purchased with only an ID card, a family 
card (KK) and a down payment of 10 to 20 percent. 

Few companies run credit or employment checks. Why? Perhaps due to interest 
rates as high as 25 percent annually. 

Armando Lung, president director of Bussan Auto Finance, said the volume of 
motorcycle loans at his company had tripled over the past five years as 
financing companies relaxed requirements for borrowers. 

The company expects to finance 900,000 units this year, he said, up from 
300,000 in 2005. 

Nationally, 75 percent of motorcycles are expected to purchased with loans in 
2010, up from about 65 percent last year, he said. 

"This kind of growth was supported by increasing purchasing power in line with 
growth in the Indonesian economy," he added. 

One of the main benefits of owning a motorcycle - the ability to slice through 
traffic - has created what Darmaningtyas labeled a "vicious circle." 

"They want to beat the traffic, but as [motorcyles become more numerous], the 
traffic just gets worse," he said. "There is almost one motorcycle for every 
person in Jakarta, and you can see what kind of chaos they create." 

Jakarta is considering restricting motorcycles in certain areas to ease 
congestion, said Udar Pristono, head of the Jakarta Transportation Office. 

"In the future, our plan is to limit the use of motorcycles in roads along all 
TransJakarta routes," he told the Jakarta Globe in July. 

Other experts say they should be banned from the city center, as in Beijing and 
Singapore. 

Darmaningtyas said that to some extent motorcyclists have themselves to blame 
for the backlash. 

"Motorcycle riders are the most selfish on the road. They change lanes as they 
please, they don't want to wait at all, they use pedestrian lanes, they even 
use underpasses as shelters when it rains, blocking the traffic." 

But he said restricting motorbikes would create an uproar if public 
transportation were not improved to compensate. 

"What the government should do is enforce law. Currently, it is easy to get a 
license without even taking the test. Police should be stricter in dealing with 
motorcyclists," he said. 

Arief, a waiter who relies on his motorcycle to commute, said the government 
needs to consider other options instead of issuing restrictions. 

"The government needs to come up with the solution, for example providing a 
lane specifically for motorcycles on specific roads [such as major 
thoroughfares]," he said.






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