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.
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After nationwide protests swept the country in late August, the demand for institutional police reform rose to the top of the national agenda following an incident where an armored police vehicle struck and killed a civilian during the demonstrations. Just two months later, President Prabowo Subianto responded by establishing the National Police Reform Acceleration Commission.
The new body consists of 10 individuals from diverse backgrounds that include notable Indonesian legal figures, namely former Constitutional Court chief justice Jimly Asshiddiqie, Coordinating Law, Human Rights, and Immigration and Correctional Services Minister Yusril Ihza Mahendra, and legal expert and politician Mahfud MD.
However, the body also includes National Police chief Gen. Listyo Sigit Prabowo and his three predecessors, Idham Aziz, Home Minister Tito Karnavian, and Badrodin Haiti. This has cast doubt on whether substantive changes can be achieved. Indonesian Legal Aid Foundation (YLBHI) Muhamad Isnur said that the presence of sitting and former police chiefs undermines public trust in the commission. "These are people who once led the police force and yet failed to implement many reforms," Isnur noted.
Reforming law enforcement institutions in Indonesia has always been a double-edged sword. Legally, the National Police is directly under the executive branch's jurisdiction, granting Prabowo authority to mandate changes. In practice, direct intervention carries repercussions that could destabilize his political capital.
Both the National Police and the Indonesian Military (TNI) have maintained a tradition of political involvement since the nation's inception. During the 2024 presidential election, reports from Tempo alleged that the police played an active role in securing the win for the Prabowo-Gibran Rakabuming Raka ticket, a claim both parties rejected.
Regardless, directly confronting the institution now could pose significant risks for the President ahead of the next election cycle. Curtailing police powers inevitably invites intense counter-lobbying and necessitates compromises, the inclusion of police chiefs in the reform team as an example, to ensure the institution does not lose its foothold in the national political sphere.
For the TNI, having a former army general as President has helped them maintain their standing amid the public's growing discontent with law enforcement. When journalists presented Prabowo with a list of demands in the aftermath of the August protests, he welcomed most reforms as "logical" while explicitly singling out changes to the military as "debatable".
More recently on Nov. 14, the Constitutional Court issued a ruling prohibiting active-duty police officers from holding concurrent civilian posts. Officers must now retire before assuming civilian roles in government or leadership positions in state-owned enterprises. According to official police data, over 300 active police officers currently hold such posts.
Among them are Corruption Eradication Commission (KPK) Chair Comr. Gen. Setyo Budyanto and National Narcotics Agency (BNN) Chair Comr. Gen. Suyudi Aryo Seto. Several high-ranking officers are also attached to the National Nutrition Agency (BGN), which oversees Prabowo's flagship free nutritious meal program that got an allocated budget of Rp 71 trillion (US$4.2 billion) this year and projected to rise to Rp 335 trillion in 2026.
Two members of the reform committee have released statements that appear to undermine the court's ruling. Coordinating Law, Human Rights, and Immigration and Correctional Services Deputy Minister Otto Hasibuan stated that the court's decision would be treated merely as "advisory input" for the police reform team. Activists strongly dispute this; Constitutional Court rulings are final and binding, taking effect immediately upon their delivery rather than serving as suggestions.
Furthermore, Law Minister Supratman Andi Agtas claimed that officers currently occupying civilian posts are exempt as they were appointed prior to the decision. While Constitutional Court rulings are generally prospective, applying to future cases, constitutional law expert Zainal Arifin Mochtar argued that such rulings "are not absolute, especially regarding ongoing implications". Commission head Jimly Asshiddiqie has also affirmed that the court's ruling is "final and binding".
While Prabowo has made efforts to listen to civil society demands, it remains to be seen just how far he is willing to go to overhaul an institution that wields such immense political influence, and to a certain extent he owes to.
