Indonesia’s aviation industry has recorded robust growth marked by increased passenger numbers, expanding fleets, and increased flights. The aviation sector offers huge investment opportunities given the country’s unique geographical conditions coupled with a rising middle-class and a strengthening tourism industry.
Indonesia’s logistics sector is currently recording strong double digit growth due to the continuous development of the Indonesian economy driven by resilient domestic demand. However, its performance in international rankings remains weak.
Gridlock in the capital and increasingly in secondary cities has spurred improvements in passenger railway services to connect commuters to the suburbs. However, utilising railways to unclog bottlenecks and reduce logistics costs for cargo transportation remains neglected.
As Indonesia’s economy has grown so too have the challenges in providing a well-organised public transport system. Rising incomes and the flow of people into densely populated cities have already led to total gridlock in the capital, costing the country a fortune in lost productivity, wasted fuel and missed business opportunities.
Good maritime connectivity is key to Indonesia's further economic development, for unless the country's high logistics costs can be brought down, local companies will have a hard time taking on overseas competition in the ASEAN Economic Community.
Located along some of the world’s busiest sea lanes, Indonesia offers tremendous potential for sea transportation. While the 2013 slowdown in investment and consumption also affected maritime cargo, the sector is bound to bounce back once the overall economy brightens up again.
Amid a concerted drive towards increasing activity in oil and gas exploration, Indonesia in 2014 announced revisions to cabotage principles for offshore vessels. This update looks at changes to deadlines for exemption from cabotage laws for several offshore vessel types, in light of the country’s growth strategy for the shipyard industry.
Contribution to GDP: 4.19% (Q3 2015)
Existing Road Network: Paved 287,926 km, Total 508,000 km (2013)
Existing Toll Road Network: 949 km (June 2015)
Active Railway Network: 4,069.4 km (September 2015)
Number of Airports: 295; 27 with runway length >2,000 metres (2015)
Active Commercial Sea Ports: 78 (2015)
Main Government Bodies: Ministry of Transportation, BAPPENAS, Ministry of Public Works and Housing, Indonesia Toll Road Authority (BPJT).
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