Transport
From The Report: Indonesia 2018
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Road, port, airport and rail upgrades are a critical priority for the government of President Joko Widodo, with his administration having overseen an infrastructure and transport spending surge since taking office in 2014. The main aims of this increased resource allotment are to lower transportation costs – which are among the highest in South-east Asia – reduce congestion, and improve the sector’s business and investment climate. Progress is being made on all fronts, and infrastructure spending is forecast to hit a record high in 2017.

This chapter contains interviews with Elvyn Masassya, President Director, Pelabuhan Indonesia II; and William Sabandar, President Director, Mass Rapid Transit Jakarta.

Articles from this Chapter

Overview

Strong momentum: Plans for every segment aim to address efficiency and overall competitiveness
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Road, port, airport and rail upgrades are a critical priority for the government of President Joko Widodo, with his administration having overseen an infrastructure and transport spending surge since taking office in 2014. The main aims of this increased resource allotment is to lower transportation costs across the board – which are among the highest in South-east Asia – reduce congestion, and improve the sector’s business and investment climate. Progress is being made on all fronts,…

Interview

On the water: Elvyn Masassya, President Director, Pelabuhan Indonesia II (IPC-Pelindo II), on developing and financing port infrastructure
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Interview: Elvyn Masassya What are the investment priorities for IPC? ELVYN MASASSYA: Our government has the ambition to make Indonesia a maritime axis, and to do this we need to develop our ports. We have plans to build several ports, not only in Jakarta, but also in other regions in Indonesia. Over the medium term, we have the new Kalibaru Port in the pipeline as well as an extension of Tanjung Priok, the Port of Jakarta. We are now reclaiming the land around Kalibaru to increase our capacity,…

Analysis

Making inroads: The popularity of ride-hailing apps continues to surge
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Mobile ride-hailing applications are revolutionising urban transport in Indonesia. Recording triple-digit growth in recent years, apps like Grab, Go-Jek and Uber have made significant inroads, offering targeted GPS services that enable rapid pick-up, easier navigation, speedier journeys and lower price points. Recent investment announcements highlight the enormous growth potential in the country, with leading apps now in the midst of multibillion-dollar expansion programmes. Although the…

Interview

Modelling the modern: William Sabandar, President Director, Mass Rapid Transit (MRT) Jakarta, on using public transport to improve the capital
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Interview: William Sabandar How can land acquisition issues be solved in the next phases of the MRT project’s development? WILLIAM SABANDAR: When the first phase of the MRT project started much of the land had not yet been cleared. This has hampered the development of the project, as you can’t construct if the land is not cleared, especially in elevated sections. To mitigate this problem for the second phase of the project, we will coordinate with all the ministries and local authorities to…

Analysis

Taking off: Airport developments aim to match rising passenger and freight movement
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The airline market in Indonesia is one of the fastest-growing globally and a leading driver of transport industry growth. Although this expansion has created capacity constraints at its primary air hub, Soekarno-Hatta International Airport in Jakarta, the recent completion of a third terminal has significantly boosted capacity, better enabling the airport to meet rapidly rising demand. The government is now shifting its focus to developing and upgrading airports outside of Jakarta, with plans…

Analysis

Promising paths: The number of passengers commuting by rail continues to grow
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Rail ridership in Indonesia has risen substantially in recent years, making decades of underinvestment and growing urban congestion important considerations for transport stakeholders as they upgrade and construct new lines. Statistics Indonesia (BPS) reports that total rail passengers rose from 199.3m in 2011 to 202.2m in 2012, 216m in 2013, 277.5m in 2014 and 325.9m in 2015. The average length of a passenger journey has simultaneously fallen from 95 km to 68 km, while the country’s rail network…