Transport & Infrastructure
From The Report: Indonesia 2024
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Indonesia, an archipelago with over 17,000 islands and a population of nearly 280m, relies on diverse passenger transport systems to drive connectivity and economic development. In recent years, the government has significantly boosted spending on transport and infrastructure, further supported by private investment through public-private partnerships. Historically, the transport sector has been car-dominated, with routes mainly centred around Jakarta. However, under the administration of President Joko Widodo, better known as President Jokowi, there has been a push to diversify transport options and enhance connectivity between major cities and rural areas.

Noteworthy projects include the development of a new capital, Nusantara, in East Kalimantan and the Jakarta-Bandung high-speed rail. The incoming government, led by President-elect Prabowo Subianto, who was elected in February 2024, is set to be inaugurated in this new city. These initiatives reflect a strategic long-term vision for transport development through 2030 and beyond. The expansion of road, rail, sea and air networks is expected to foster the growth of new economic corridors, improve rural connectivity and boost job opportunities. The construction of new ports is also anticipated to spur growth in trade and tourism, significantly contributing to the country’s overall economic progress.

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Overview

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As an archipelago with more than 17,000 islands and a population of nearly 280m people, Indonesia relies on various forms of passenger transport for connectivity and economic growth. The government has increased spending on transport and infrastructure in recent years, further supported by private funding under public-private partnerships (PPPs). Transport has been dominated by cars for decades, with most transport routes centred around the densely populated capital, Jakarta. In recent years the government under outgoing President Joko Widodo, better known as President Jokowi, has introduced policies to diversify the transport available and create…

Analysis

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