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 moreTransportation
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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There is renewed hope for police reform following President Prabowo Subianto’s approval of the police reform committee’s recommendations. Although several points merely preserve the status quo, the recommendations also call for more substantive action, particularly a revision of the 2002 National Police Law.
On May 5, the President approved the six-point reform recommendations proposed by the police reform committee. This marks an important milestone following his long-awaited pledge to reform the National Police, coming shortly after the committee completed its work in early March.
Of the six recommendations, two largely maintain existing arrangements. First, the National Police will remain an institution directly under the president rather than being moved under a ministry. Second, the appointment of the National Police chief will continue through the confirmation hearing mechanism in the House of Representatives.
The third recommendation is more consequential. It seeks to strengthen the National Police Commission (Kompolnas), the government-sanctioned oversight body, by granting it broader authority to hold officers accountable and by removing ex officio seats for government officials. Kompolnas needs to be institutionally strengthened so that it possesses investigative authority and the capacity to issue binding recommendations. At present, the body can only provide non-binding advice to the president, which limits its effectiveness as an accountability mechanism.
Committee chair Jimly Asshiddiqie argued that the National Police’s direct accountability to the president must be balanced by strengthening Kompolnas as an independent institution. This reflects a fundamental governance principle: concentrated executive authority requires equally robust oversight to prevent the abuse of power and ensure democratic accountability.
The fourth recommendation is equally essential because it directly affects the public: the demilitarization of the National Police’s work culture. Demilitarization involves more than just reducing the excessive use of force; it requires transforming organizational culture, command structures and public engagement strategies. The goal is to ensure policing becomes more civilian-oriented and rights-based.
The fifth recommendation concerns tighter regulations governing the placement of police officers in civilian posts, such as ministries and state agencies. This issue has long been debated because the expansion of police influence into civilian institutions risks blurring the boundaries between security functions and civilian governance. Stronger limitations are necessary to preserve democratic checks and balances.
Finally, the sixth recommendation proposes eliminating the “special quota” pathway in police recruitment. This reform is significant because recruitment systems shape the long-term integrity of the institution. Privileged pathways often perpetuate patronage networks, systems where power is used to benefit specific groups and undermine meritocracy. A more transparent system would improve institutional credibility and reduce opportunities for favoritism.
Taken together, these recommendations require serious political commitment to be effective. The House has stated its readiness to discuss revisions to the National Police Law, as the bill is already included in this year’s National Legislative Program (Prolegnas) priority list. Lawmakers have noted that the committee’s findings will serve as the foundation for these upcoming deliberations.
