EFFECTS OF PRICE AND ECONOMIC FACTORS ON THE DEMAND OF PRIVATE CARS IN JAKARTA INDONESIA

This study examines the factors that influence the demand of private passenger cars in Special Capital Region of Jakarta, Indonesia including price factors which includes average price of private passenger cars, premium fuel price, railway public transportation tariff. In addition, there are another economic variable, namely income factor per capita. This research was conducted in the province of Jakarta as the fastest growing province as well as the capital city of Indonesia. The study was conducted for one year from March 2013 until February 2014. By using multiple regression method as data analysis tool, the results of this research show the negative influence of price factors of average price of private passenger car and premium oil fuel price significant, and train public transportation tariff on the demand of private passenger cars. Moreover, the income factor per capita has a significant positive effect on the demand of private passenger cars in Jakarta.