Life in the Slow Lane

We study how TransJakarta, one of the worlds largest BRT systems, impacted commuting outcomes in Jakarta, Indonesia from 2002 to 2010. Using planned lines for identification, we find that BRT station proximity neither reduced vehicle ownership nor travel times, and it did not increase commuter flows. Instead, the BRT exacerbated congestion along service corridors. To evaluate welfare effects, we calibrate a quantitative spatial general equilibrium model with multiple congestible transport networks. Counterfactual simulations suggest that implementation improvements, including increasing the quality of expansion corridors, would significantly improve welfare with only modest costs.