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

July 7, 2026

The Chromebook procurement case has become one of Indonesia's highest-profile corruption prosecutions, sparking intense debate over whether it represents a straightforward anti-corruption effort or something far more consequential.

Nine months after the legal process began, and with the court finally delivering its verdict, the case has evolved far beyond a routine procurement dispute. Instead, it has become a litmus test for the Indonesian justice system to distinguish between policy misjudgment, abuse of authority and criminal corruption.

On June 30, the Jakarta Corruption Court sentenced former education minister Nadiem Anwar Makarim to 10 years in prison, imposed a Rp 1 billion (US$55,700) fine and ordered him to pay Rp 809 billion in restitution. Nadiem was given one month to pay the restitution, failing which he will serve an additional five years in prison.

The bench found Nadiem guilty of abusing his authority in the procurement of more than 1 million Chromebook laptops between 2020 and 2022, when Indonesia and the world were hit hard by COVID-19 pandemic that forced schools to avoid in-class learning. According to the ruling, the then-education ministry altered procurement specifications in a way that effectively favored Chromebooks, resulting in Rp 1.57 trillion in state losses.

The court also concluded that the program failed to achieve its intended purpose because many schools, particularly those in areas with poor internet connectivity, were unable to use the devices effectively.

The verdict marked the culmination of a legal process that began on Sept. 4, 2025, when the Attorney General's Office (AGO) named Nadiem a graft suspect. Prosecutors maintained that internal technical assessments had found Windows-based laptops to be more suitable for Indonesian schools, yet those recommendations were allegedly set aside in favor of ChromeOS. They had initially sought 18 years' imprisonment, a Rp 1 billion fine and Rp 5.6 trillion in restitution.

Yet, the sentence itself is arguably not the most significant outcome of the case. More striking is how public opinion evolved throughout the proceedings. Unlike most high-profile corruption trials, where public frustration is typically directed at judges for handing down lenient sentences, the Nadiem case generated an altogether different response. Even before the verdict, much of the public debate had shifted from how severely he should be punished to whether the prosecution had convincingly demonstrated that a controversial policy decision amounted to criminal corruption.

Unlike conventional corruption cases involving bribery or personal enrichment, the Chromebook case revolved around a policy decision whose criminality depended on proving abuse of authority and corrupt intent. As the trial progressed, public attention increasingly focused not on whether the procurement had failed logistically, but on whether prosecutors had successfully demonstrated that the legal threshold for corruption had been met.

The first turning point came when Nadiem challenged his suspect designation through a pretrial motion. Although the court ultimately rejected the application, the proceedings attracted unusual attention after 12 prominent legal figures submitted amicus curiae briefs. Among them were former attorney general Marzuki Darusman and former Corruption Eradication Commission (KPK) commissioner Amien Sunaryadi.

The second turning point unfolded during the trial itself. As prosecutors and defense lawyers presented competing expert testimony and documentary evidence, public attention increasingly shifted to the strength of the prosecution's case. The defense consistently argued that the Chromebook program followed prevailing procurement procedures and generated cost efficiencies. While the court ultimately rejected those arguments, the proceedings exposed genuine disagreement over whether the evidence established criminal intent or merely demonstrated shortcomings in policy implementation.

The final turning point came with the verdict itself. The decision was not unanimous. Judge Andi Saputra issued a dissenting opinion, stating that he found no convincing evidence that Nadiem deliberately sought to benefit Google or acted with corrupt intent. In his view, the prosecution had failed to establish the essential criminal elements required under Indonesia's anti-corruption laws and Nadiem should therefore have been acquitted.

Questions over the proceedings were further fueled by what many viewed as an unusual courtroom process. After reading the verdict, the panel of judges immediately adjourned the hearing without giving the defense the customary opportunity to formally state their position on the ruling.

Leaving the courtroom in tears, Nadiem questioned whether justice had truly been served, describing parts of the verdict as conclusions that "didn't make any sense." Referring to the fine and restitution, he argued that it would be impossible to pay the amount within one month, despite the judges being fully aware of his publicly declared assets. Nadiem later confirmed that he and his legal team would immediately challenge the verdict.

Regardless of how the appeal unfolds, the Chromebook saga has become more than a corruption prosecution; it has morphed into a decisive test of legal certainty, judicial process and the threshold for holding public officials criminally liable for policy decisions.

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