Being a densely populated city, Jakarta is bound to face problem of traffic congestion. This problem has lasted for a few decades and only seemed to worsen instead of being tackled. This creates a sense of wonder by the author about the impact of the steps which the government has adopted as it seems that no improvement has been made in the pas decade. After knowing that traffic congestion is a form of market failure, researching on governmental measures, the author came up with a research question: how effective are the steps taken by the government to tackle traffic congestion in Jakarta?