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.
View moreOther Sectors
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
East Nusa Tenggara Governor Emanuel Melkiades "Melki" Laka Lena has officially signed a cooperation agreement with French energy company HDF Energy subsidiary PT HDF Energy Indonesia to develop a green hydrogen ecosystem in East Nusa Tenggara. The signing was carried out in Jakarta on May 28, 2025, as part of the Indonesia-France Business Forum which was also attended by French President Emmanuel Macron and Indonesian President Prabowo Subianto.
As part of the collaboration, HDF Energy will invest US$600 million (around Rp9.6 trillion) to build eight renewable energy power plants in several East Nusa Tenggara regions, namely the regencies of East Sumba, Southwest Sumba, North Central Timor, Belu, Rote Ndao, Alor, and Sikka as well as Kupang City. This investment is part of a total investment commitment of US$2.3 billion for the eastern Indonesian region.
Melki emphasized that this initiative is part of East Nusa Tenggara's transformation as a pioneer of renewable energy in Indonesia.
"East Nusa Tenggara wants to prove that the Eastern Indonesian archipelago can be the center of innovation in renewable energy in the world. We're starting from green hydrogen," he said.
The renewable power would use a combination of solar and wind energy combined with hydrogen storage technology, making it a clean, stable and sustainable energy solution. This system could be very suitable for areas far outside Indonesia's industrial centers such as East Nusa Tenggara, which have abundant natural energy potential but minimal infrastructure.
HDF Energy judged the provice as a strategic location to develop global-scale projects, with ideal geographical conditions and strong political support.
"France sees Indonesia, especially East Nusa Tenggara, as a strategic partner in building a sustainable new energy ecosystem," said French Embassy representative Carine Lalmant.
The collaboration also includes a study on the decarbonization of the maritime sector involving the Transportation Ministry and state-owned enterprises (SOEs) PT ASDP Indonesia Ferry and PT PLN as part of the integration of green hydrogen into the national maritime transportation system.
Despite bringing great opportunities, the large-scale energy project also faces challenges related to land management, customary ties, and socio-ecological risks. Several academics and civil society organizations warn of the potential for agrarian conflict and greenwashing if the project is not implemented inclusively. In response, Melki promised the active involvement of local communities in every stage of implementation.
“We don’t want this project to become a symbol of greenwashing. This must belong to the people of East Nusa Tenggara, not just investors. We have agreed with the HDF leadership to involve community leaders from the start,” he concluded.
