Sector
Transportation
With a population exceeding 280 million people, Indonesia relies heavily on a robust transportation network encompassing sea, air, and land routes to connect its vast island chain and facilitate economic activity effectively. This reliance has made the transportation sector a leading sector in the country.
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Transportation
With a population exceeding 280 million people, Indonesia relies heavily on a robust transportation network encompassing sea, air, and land routes to connect its vast island chain and facilitate economic activity effectively. This reliance has made the transportation sector a leading sector in the country.
In 2022, the sector contributed Rp 983 trillion to the national gross domestic product (GDP) at current prices. Notably, regions where transportation is a leading sector include Aceh, West Sumatra, Bengkulu, Lampung, West Java, the Special Region of Yogyakarta, and Central Kalimantan. Additionally, North Kalimantan, Gorontalo, North Sulawesi, Maluku, East Nusa Tenggara, and Bangka-Belitung consider the transportation sector as a leading sector.
The sector has also experienced a significant boost in recent years, with the transportation and warehousing subsector achieving a staggering GDP growth of 15.93 percent year-on-year (YoY) in the first quarter of 2023.
During the COVID-19 pandemic, Indonesia’s auto industry was severely affected, leading to a decline in both vehicle sales and production. Despite this decline, the transportation sector as a whole continued to attract foreign direct investments (FDI). In 2023, foreign companies poured roughly US$2 billion into the country’s vehicle and other transportation subsectors, highlighting the continued potential that investors see in this sector.
In terms of land transportation, infrastructure projects supporting rail transport such as the Light Rail Transit (LRT), started operations in mid-August 2023. Additionally, the development of Phase 2 of the Mass Rapid Transit (MRT) Jakarta, which includes new routes, is currently underway, with 6 kilometers already completed out of a total of 13.3 kilometers. Moreover, railway transportation saw a year-on-year increase of 69.37 percent in the number of passengers nationwide.
Sea transportation is also an important subsector of the transportation industry, primarily due to the trade sector’s heavy dependence on this mode of transportation. It is highly favored for its perceived economic efficiency in transporting goods. Although sea transport may not be the main method of transportation for many individuals, the number of passengers using sea transport in 2023 increased by 13.30 percent compared to the previous year.
Furthermore, air travel in Indonesia continues to rise with the increase in economic activity. The number of passengers using domestic air transportation increased by 32.69 percent year-on-year. Additionally, Soekarno Hatta International Airport has surpassed Singapore’s Changi Airport to become Southeast Asia's busiest airport in April 2024. According to reports, the airport's flight seat capacity has also reached 3.34 million, the highest among airports in the Southeast Asia region.
Latest News
Indonesia Quarantine Agency Gorontalo (Gorontalo Quarantine) supports PT Trans Continent Hub Gorontalo's major investment plan in the field of cattle fattening and the construction of a Bonded Logistics Center (PLB) in Gorontalo Province.
"We will fully support this investment plan, both the construction of PLB and the cattle fattening [investment]," said Gorontalo Quarantine Head R.M. Ende Dezeanto in Gorontalo City on Mar. 16, 2025.
PLB is a key facility that functions as a place to store imported, local, and exported goods with various taxation, customs, and operational flexibility facilities accorded there. The Gorontalo PLB is expected to provide many benefits to the Gorontalo economy, including the flexibility of the storage period which could reduce the company's operational costs.
Ende explained that Gorontalo Quarantine, as part of Customs, Immigration, Quarantine Port (CIQP), has an important role in providing certification services and releasing goods in export and import activities at the Gorontalo PLB.
"We will ensure that all certification processes run smoothly and in line with applicable regulations," he said.
Ende stated that Gorontalo Quarantine is ready to facilitate animal health certification services in support of the cattle fattening plan, and it will ensure that cattle transported outside Gorontalo are healthy and free from disease.
Furthermore, Ende said that Gorontalo Quarantine will facilitate and assist PT Trans Continent Hub Gorontalo in the construction of a pen that will be another candidate for a third party-owned Animal Quarantine Installation (IKH). Ende and the Gorontalo Provincial Agriculture Office will directly review the locations that will be built as a cattle fattening pen and an IKH.
Gorontalo Governor Gusnar Ismail expressed his gratitude for the presentation of the investment plan from PT Trans Continent Hub Gorontalo.
"This investment plan comes at the right time to invest in Gorontalo Province," he said.
Gusnar assessed that the PLB development plan is very much needed to support export and import activities, especially in supporting mining activities and the development of food centers in Pohuwato Regency. Meanwhile, the cattle fattening plan is expected to help supply the need for cattle outside Gorontalo.
"We are very enthusiastic about this plan, and [we] are ready to provide full support so that the investment could run smoothly and provide optimal benefits for the people of Gorontalo," he concluded.
PLB is a key facility that functions as a place to store imported, local, and exported goods with various taxation, customs, and operational flexibility facilities accorded there. The Gorontalo PLB is expected to provide many benefits to the Gorontalo economy, including the flexibility of the storage period which could reduce the company's operational costs.
