Electronic-Road-Pricing Policy Finally Implemented Across Jakarta

The Governor of the Special Region of Jakarta (“Governor”) is finally ready to implement a highly anticipated new strategy in a bid to overcome the city’s traffic congestion. The Electronic Road Pricing (“ERP”) is to become a reality at last through the issuance of Regulation No. 149 of 2016 on Electronic Payments for the Control of Street Traffic (“2016 Regulation”).Through this ERP strategy, vehicles passing along certain streets in Jakarta will now be required to pay specific tariffs, which are to be deducted automatically from their electronic on-board units each time a vehicle passes an official ERP gate.The 2016 Regulation is of relevance to all motor-vehicle owners in Jakarta, as well as to people who are living and/or working in Jakarta.ERP ApplicabilityThe Governor is ultimately responsible for determining the streets which are prone to congestion and thus to which the new ERP system will be applied. Any such streets, however, must satisfy the following criteria: [1]