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progressive vehicle taxation system to be put into practice next year will likely prove insignificant in addressing Jakarta's woeful traffic jams, transportation experts said Wednesday.

The new system will allow the government to impose vehicle tax progressively to people with more than one motorized vehicle.

This system was proposed under the new regional tax law, which was passed Tuesday by the House of Representatives.

Once the law takes effect, provincial administrations can impose a maximum vehicle tax of up to 10 percent of the vehicle value - double the previous ceiling of 5 percent - and apply higher taxes on the second and following vehicles owned by an individual.

The new law sets taxes for the subsequent vehicles at between 2 and 10 percent. Details on the system will be regulated by each provincial administration.

Critics contend the progressive tax should be levied along with other traffic-restriction policies and the improvement of public transportation to ease the city's traffic woes.

"Limiting car ownership is only a band-aid solution for traffic problems," said Bambang Susantono from the Indonesian Transportation Society (MTI).

"The key solution is to revitalize public transportation and restrict traffic, including through an ERP *Electronic Road Pricing* system.

"This will at least make people think twice before buying a new car, though what's more important is restricting car use, not ownership."

He added the tax would contribute to reducing the vehicle growth rate in the city, currently at around 10 percent a year.

With the current vehicle growth rate and no breakthrough in traffic management, experts warn the city could see total gridlock by 2014.

"The key to tackling traffic problems is high-quality public transportation for all," Bambang said.

"If the government wants people to stop using their cars, public transit should be safe, secure, affordable and convenient."

Darmaningtyas, from the Institute for Transportation Studies (Instran), said the new tax system would have a limited contribution, because of its application on an individual, not group, basis.

"A family with more than one car can register their cars under different family members," he said.

Damantoro, from the Urban Transport Forum, however, said the new system would have a significant impact on the city's traffic problems.

"The tax will discourage private car users; it's one way to address congestion," he said.

"Another way is to give more incentives to public transportation."

Before the system takes effect, Governor Fauzi Bowo said, the administration should talk it over with the administrations of surrounding cities in Greater Jakarta.

He added if different provinces used different systems, Jakarta car owners would register their vehicles in regions that levied lower taxes.