Transport & Logistics
From The Report: Indonesia 2017
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Indonesia’s transport sector is in the midst of a major overhaul, with government investment in infrastructure set to hit an all-time high, driven by new projects. All segments in the sector are set to benefit from a far-reaching infrastructure development agenda, with plans to construct 2500 km of new highway to complement ongoing upgrades across Indonesia’s vast network of ports and airports. Perhaps most promisingly, 2015 saw solid progress towards the delivery of a national rail network, with the signing of a new agreement for a high-speed link on Java, although land acquisition continues to pose challenges, raising doubts as to whether the project will be completed on time and within budget. At the same time, public funding is still insufficient to meet its long-term infrastructure goals, opening a host of new opportunities to foreign investors, with the government moving to revise its negative investment list to permit increased foreign participation.

This chapter contains interviews with Elfen Goentoro, President-Director, PELNI; and Bambang Tjahjono, President-Director, AirNav Indonesia.

Articles from this Chapter

Overview

Development agenda: Indonesia’s transport sector is in the midst of a Increased public spending and private investment are driving expansion in the sector
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Indonesia’s transport sector is in the midst of a major overhaul, with government investment in infrastructure set to hit an all-time high, driven by new projects. All segments in the sector are set to benefit from a far-reaching infrastructure development agenda, with plans to construct 2500 km of new highway to complement ongoing upgrades across Indonesia’s vast network of ports and airports. Perhaps most promisingly, 2015 saw significant progress towards the delivery of a national rail network,…

Analysis

Growth path: Toll roads are an essential part of the country’s economic expansion
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Although Indonesia’s network of toll roads remains limited compared to some of its neighbours’, the country is set to launch construction of 1000 km of new toll roads over the next five years as part of an ambitious infrastructure development programme that envisions over 2500 km of new highways. Long underdeveloped and overburdened, the country’s network of toll roads will improve dramatically under this development agenda, with private sector investment in the sector set to soar following…

Interview

Charting new waters: OBG talks to Elfien Goentoro, President Director, PELNI
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Interview:Elfien Goentoro What are the priorities for new sea transport services routes, and what is being done by the government to boost the maritime industry? ELFIEN GOENTORO: We depend on demand for sea transport services to open up new routes. The number of vessels we can operate is relatively fixed, so when a new route is opened up, it is usually an old route that is being deviated. To reduce price disparities in the country, the government has subsidised transport costs for ships along…

Analysis

Forward planning: New projects and increased investment have the logistics sector posting double-digit growth in 2016
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Businesses in Indonesia have long faced comparatively high transport costs. The country’s diverse, challenging geography, scattered population and overburdened infrastructure have driven transport costs to some of the highest levels within ASEAN. As part of the government’s infrastructure development plan, the administration of President Joko Widodo is planning to establish 11 new bonded logistics zones, which should reduce shipping costs by moving storage services into the country from neighbouring…

Interview

Change in the air: OBG talks to Bambang Tjahjono, President Director, AirNav Indonesia
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Interview:Bambang Tjahjono What are the priorities for air traffic control in Indonesia in terms of investment and strategy? BAMBANG TJAHJONO: We will invest more than Rp2.2.trn ($160.6m) over 2016 in modernising equipment, maintaining devices and upgrading systems in more than 270 airports operated by Angkasa Pura I and II and the Ministry of Transport. Our equipment consists of facilities for communication, navigation surveillance and automation. Another major target for 2016 is to modernise…

Analysis

Outward bound: Looking to expand its regional transport influence, the country enhances its port network
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Indonesia is currently in the process of strengthening its port system, with plans to upgrade and expand its existing network, in addition to building a host of new facilities across the archipelago. Port upgrades and construction will be critical for a number of long-term development goals, including the country’s transformation into a “global maritime axis” under the “Sea Toll Road” strategy, launched by President Joko Widodo in 2014. This strategy includes upgrades to 24 existing ports,…