Infrastructure & Transport
From The Report: Indonesia 2020
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For many years, Indonesia’s sizeable infrastructure gap has hindered industrial development. On Java – the country’s most densely populated island – roads, airports and seaports are under pressure due to the large amount of people and goods that need to be moved. At the same time, Indonesia faces challenges connecting other islands across the vast archipelago. Due to this, infrastructure and transport have been key priorities for the government in recent years. At the start of his second term in office in 2019, President Joko Widodo, better known as President Jokowi, launched a $412bn programme to boost investment in the country’s transport infrastructure. While infrastructure development is likely to be affected in the short term by the disruptions caused by the global outbreak of Covid-19 in early 2020, the government is working to ensure that major projects are attractive to private investors in the coming years. This chapter contains interviews with William Sabandar, President Director, Mass Rapid Transit Jakarta; and Liew Mun Leong, Chairman, Changi Airport Group.

Articles from this Chapter

Overview

Making inroads: An extensive portfolio of projects aims to bridge the country’s long-standing infrastructure gap
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For many years, Indonesia’s sizeable infrastructure gap has hindered industrial development. In Java – the country’s most densely populated island – roads, airports and seaports are under pressure due to the large amount of people and goods that need to be moved. At the same time, Indonesia faces challenges connecting other islands across the vast archipelago. Nevertheless, infrastructure and transport have been key priorities for the government in recent years. At the start of his…

Interview

Bigger picture: William Sabandar, President Director, Mass Rapid Transit (MRT) Jakarta, on the contribution of public transport to urban growth
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Interview:William Sabandar To what extent are public transport operators working to minimise Indonesia’s carbon footprint? WILLIAM SABANDAR: Since the beginning of the MRT project, the primary goal has been to reduce the number of private car users. With our new public transport system moving approximately 85,000 people per day in 70,355 trips around Jakarta in 2019, we can already see a significant reduction in both the carbon footprint and traffic congestion of the whole city, especially…

Analysis

Linking up: Investment from China is set to make up a sizeable portion of infrastructure spending
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In early 2019 Indonesia proposed the involvement of Chinese companies in dozens of projects worth an estimated $91bn. Although specific details about many of these developments are still unclear, Luhut Pandjaitan, coordinating minister of maritime affairs and investment, told local media that they would include seaports, industrial estates, power plants and tourism developments. These could fall under the umbrella of the Belt and Road Initiative (BRI), China’s global strategy for enhancing…

Analysis

Taking to the skies: A number of expansion plans are in the pipeline to increase the capacity of the country’s airports
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In recent years the number of air passengers in Indonesia has risen rapidly, from 30m in 2009 to more than 115m in 2018. This was largely driven by two factors: the fast-growing middle class, which comprises an estimated 52m people; and the emergence of low-cost carriers, which have significantly improved regional connectivity. The country’s growing popularity as a holiday destination for international tourists has also contributed to this growth, with 10.1m international arrivals by air…

Interview

Changing landscapes: Liew Mun Leong, Chairman, Changi Airport Group, on opportunities for investment and facilitating movement
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Interview:Liew Mun Leong What factors make Indonesia’s airport infrastructure market attractive to outside investors? LIEW MUN LEONG: Indonesia currently ranks 10th globally in terms of total air passenger traffic numbers, and is expected to rise to fourth place by 2036, behind China, the US and India. Indonesia is Changi Airport’s largest market, with more than 8.3m passengers travelling on flights between Indonesia and Singapore in 2019. Furthermore, Singapore received 3m visitor arrivals…

Analysis

Strategic reorientation: How will the international Covid-19 outbreak impact projects associated with China’s Belt and Road Initiative?
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The Belt and Road Initiative (BRI) is a far-reaching plan for transnational infrastructure development, linking five continents through land and sea corridors, and industrial clusters. Launched in 2013, it was initially planned to revive ancient trade routes between Eurasia and China, but the scope of the BRI has since extended to cover 138 countries, including 38 in sub-Saharan Africa, and 18 in Latin America and the Caribbean. Financing Needs Prior to the Covid-19 pandemic, the Asian…

Analysis

Strategic reorientation: How will the international Covid-19 outbreak impact projects associated with China’s Belt and Road Initiative?
OBG
plus

The Belt and Road Initiative (BRI) is a far-reaching plan for transnational infrastructure development, linking five continents through land and sea corridors, and industrial clusters. Launched in 2013, it was initially planned to revive ancient trade routes between Eurasia and China, but the scope of the BRI has since extended to cover 138 countries, including 38 in sub-Saharan Africa, and 18 in Latin America and the Caribbean. Financing Needs Prior to the Covid-19 pandemic, the Asian…