Transport & Logistics
From The Report: Indonesia 2013
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Transportation and logistics in Indonesia are sectors of great opportunity, but also pose immense challenges. As the economy booms and travel increases, related businesses have grown and relevant infrastructure is being built. At the same time, the transportation networks and systems are put under stress as the economy expands rapidly. This is especially an issue in Indonesia, where existing infrastructure is often poor and the process of adding capacity can be slow and inconsistent. Over the next few years, transportation and logistics promise to develop quickly, although not always in a balanced way. Connectivity should improve, bringing some corridors up to international standard, though gaps may remain.
This chapter contains interviews with Emirsyah Satar, President and CEO, Garuda Indonesia; and Richard Lino, President Director, IPC II.

Articles from this Chapter

Overview

Step by step: Infrastructure and logistics improved to satisfy a growing economy
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Transportation and logistics in Indonesia are sectors of great opportunity, but also pose immense challenges. As the economy booms and travel increases, related businesses grow and relevant infrastructure is built. Industries that are directly and indirectly involved in any of these activities, from airlines to construction companies, will benefit. At the same time, the transportation networks and systems are put under stress as the economy expands rapidly. This is especially a problem in Indonesia,…

Interview

Emirsyah Satar, President & CEO, Garuda Indonesia: Interview
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Interview: Emirsyah Satar In what ways might the ASEAN open-skies agreement change the domestic market? EMIRSYAH SATAR: If you look at the ASEAN agreement, Indonesia is both the biggest sky and the largest market. In a broader sense, the world is gradually becoming boundary-less. The domestic airline industry must prepare itself for this, but we must still ensure that Indonesian airlines are treated in the same manner as foreign ones. The regulator must practise a system of reciprocity. Foreign…

Interview

Emirsyah Satar, President & CEO, Garuda Indonesia: Interview
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Interview: Emirsyah Satar In what ways might the ASEAN open-skies agreement change the domestic market? EMIRSYAH SATAR: If you look at the ASEAN agreement, Indonesia is both the biggest sky and the largest market. In a broader sense, the world is gradually becoming boundary-less. The domestic airline industry must prepare itself for this, but we must still ensure that Indonesian airlines are treated in the same manner as foreign ones. The regulator must practise a system of reciprocity. Foreign…

Analysis

Flying higher: With greater focus on safety, the industry is poised for expansion
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The Indonesian air transport industry has gone from an international pariah banned in the EU to one of the most interesting globally for airlines, manufacturers, travellers and investors. The economy is growing, leading to an increase in travel and higher capital expenditures in the sector, as the government makes efforts to strengthen players and related infrastructure. International manufacturers are also undertaking initiatives to support the domestic airlines. Garuda Indonesia is leading…

Analysis

A new vision for the skies: Model for air transportation evolves to boost regional interlinkages
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Along with the boom in Indonesian aviation has come a realignment. While the country has 15 airports designated as international gateways, and direct flights have long been available on major routes, new connections are being opened between smaller airports in Indonesia and cities throughout ASEAN. The hub-and-spoke model is evolving into a more point-to-point structure. The activity is frenetic, with new services being offered every month. In 2013 Mandala Airlines will open 10 new routes,…

Interview

Richard Lino, President-Director, IPC II: Interview
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Interview: Richard Lino How will the expansion of the Kalibaru Port project contribute to addressing problems in Indonesia’s sea transportation sector? RICHARD LINO: Currently, the container throughput in the Port of Tanjung Priok is 45% of national throughput, making it the biggest port in Indonesia. With the existing capacity of 9m twenty-foot equivalent units (TEUs), our calculations show that this port can only serve demand until 2015. The Kalibaru Port project, or NewPriok, is a $4bn project…

Analysis

Workin’ on the railroad: Infrastructure developments will see more coal moved by rail
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More than 1000 km of rail lines are being developed on the islands of Borneo and Sumatra to allow for the more efficient and timely transportation of natural resources. East Kalimantan has an estimated 19.56bn tonnes of coal, while Central Kalimantan has 8.67bn tonnes. South Sumatra has an estimated 22.24bn tonnes of coal. And all three provinces are lacking in infrastructure. DEVELOPMENTS: Over the past few years, a number of projects have been planned and a few initiated to move resources…

Analysis

Low speed ahead: Alternatives are proposed as costly high-speed rail appears stalled
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High-speed rail is unlikely to come to Indonesia any time soon, with attempts so far proving to be anywhere from impractical to impossible. Nevertheless, rail is an important part of the nation’s development and there is plenty of work to be done that could greatly benefit the country at a relatively low cost. Indonesia is focusing on projects of this type, such as intra-city lines, the Mass Rapid Transit (MRT) in the capital, the upgrading of its main rail corridor, and all practical and bankable…