Indonesia’s Urban Gridlock: Why Intelligent Transport Systems Are the Key to Safer, Smoother Cities
- Indonesian population and traffic demands are growing
- Congestion and traffic accidents cost country more than USD 40 billion per year
- “Intelligent Transport System are a lifeline,” says Carolin Treichl from Kapsch TrafficCom
Jakarta, Indonesia, September 29, 2025 – Indonesia’s cities are at a tipping point. With urban vehicle numbers growing at over 6% annually and congestion in cities like Jakarta, Bandung, and Medan ranking among the world’s worst, the need for modern traffic solutions has never been more urgent.
In Greater Jakarta alone, daily vehicle passages exceed 2.5 million and annual GDP losses from congestion top USD 5 billion. Road safety is equally alarming: Indonesia records between 28,000 and 43,000 road fatalities each year, costing the national economy an estimated USD 38 billion – about 3% of GDP. Vehicles are crowding the streets, and constructing new roads only leads to more congestion, as research from around the world shows.
“Intelligent Transport Systems are not just a technological upgrade – they are a lifeline for Indonesia’s cities,” says Carolin Treichl, EVP EMEA at Kapsch TrafficCom. “By integrating real-time data, adaptive traffic signals, and connected vehicle technology, it is possible to substantially reduce congestion and make streets safer for everyone. Our global experience, from Buenos Aires to Madrid to Melbourne, shows that modular, cloud-native ITS platforms deliver measurable results quickly and cost-effectively.”
Yoga Adiwinarto, Secretary General at ITS Indonesia, adds: “Urban mobility is the backbone of Indonesia’s economic growth. Our collaboration with international partners like Kapsch TrafficCom is essential to bring proven, scalable solutions to our cities. We are committed to supporting smart city initiatives that prioritize safety, efficiency, and sustainability for all Indonesians.”
With Indonesia’s urban vehicle population projected to reach 160 million by 2030 and road expansion lagging far behind demand, the time to act is now. Investing in ITS is not only a moral imperative to save lives but also an economic necessity to keep Indonesia’s cities moving and competitive on the global stage.
Kapsch TrafficCom stands out for its expertise in deploying ITS and connected vehicle solutions worldwide. The company’s modular technology is giving traffic managers the tools to analyze, understand and most importantly influence traffic behavior in real time. The solutions deployed around the globe are reducing congestion and emissions, making traffic safer and allowing cities to transform themselves from ever-expanding highway gridlocks to intelligent, adaptable traffic networks, ready for the next generation of mobility.
Kapsch TrafficCom is a globally renowned provider of transportation solutions for sustainable mobility with successful projects in more than 50 countries. Innovative solutions in the areas of tolling and traffic management contribute to a healthy world without congestion.
With one-stop-shop solutions, the company covers the entire value chain of customers, from components to design and implementation to the operation of systems.
Kapsch TrafficCom, headquartered in Vienna, has subsidiaries and branches in more than 25 countries and is listed in the Prime Market segment of the Vienna Stock Exchange (ticker symbol: KTCG). In its 2024/25 financial year, more than 3,000 employees generated revenues of EUR 530 million.