“Traffic congestion in Jakarta is notorious and having had to deal with it for my whole life, it’s difficult to disagree with assertions that it is amongst the world’s worst. Driving around the CBD would take you the best part of the day and my own commute to work, about 15 km, can take up to two hours,” says Arta Putra, a Senior Analyst in JLL’s research team in Indonesia.

It also costs the city at least $3 billion per year, the transportation ministry estimates, but as Jakarta’s Governor Basuki “Ahok” Tjahaja Purnama told reporters: “So long as Jakarta doesn’t have a decent rail-based mass transportation system, we will always be congested.”

Indeed, Jakarta is one of the few megacities still lacking a mass-transit rail system. Between 2000 and 2010, the city’s population rose by 19 percent, but the city’s area increased by 30 percent. Only 35 percent of Jakarta’s working population actually live in the city itself—some 1.4 million commute daily into the city.

But all of that is set to change under new infrastructure plans for new toll roads, a railway line linking the airport and the city, and a light rail. Todd Lauchlan, Managing Director of JLL Indonesia says: “The net effect will transform Jakarta into a liveable city on par with Tokyo, Singapore and Hong Kong. From an underperformer, the city can lift itself well and truly into the 21st century.”

A new chapter for the city

The Jakarta Mass Rapid Transport (MRT) is already under construction, with the first stations due to open in 2018 and the main route going up the spine of the city. An airport connection, planned to open in 2020, would cut travel time to 30 minutes and allow travellers to check in downtown.

Separately, six new toll roads are also due to open by 2020, covering 72 kilometers, crossing the city like veins and pumping lifeblood into downtown. The benefits of these infrastructure improvements should be significant for Jakarta and Indonesia as a whole.

“Indonesia is behind neighbors such as Thailand and Malaysia in its urbanization, which commentators say holds back growth,” says Laughlin. Goldman Sachs, in a recent report, calculates that Indonesia’s GDP would be 40 percent higher if it had matched the development of its neighbors.

The new transport network also bodes well for a variety of real estate projects – office, retail and residential. Putra says: “Well located mixed-use projects already command a premium in Jakarta and in recent quarters we have seen sustained interest from international developers looking to purchase land with a view to embarking on commercial and residential developments with direct or convenient access to the mass-transport developments.”

The long-awaited MRT has particular appeal, Laughlin adds. “Real estate projects with convenient access to the MRT are likely to be especially desirable, and this will boost demand and drive up rents.”

Catching the eye of developers

Major international developers have taken notice. Hongkong Land and local partner Astra Land are developing the Anandamaya Residences, three condominium towers that will deliver around 500 apartments. “The project’s location puts it squarely in the central business district, and shows how Jakarta will grow up, literally, instead of growing out,” Laughlin explains.

Meanwhile, the Goldman Sachs report anticipates that developers will have three times the current level of demand for housing with a proper urban blueprint in place—a demand of 85,000 new units per year, compared with the current annual supply of about 35,000 homes.

With an ever-growing urban population, Jakarta’s rush hour may not be getting any less busy in the future but an integrated new transport system may help it shed its title of the world’s most congested city.

This article originally appeared on Real Views, JLL’s news site that features stories exploring the world of real estate and its impact on the wider business world.