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
Public demand for police reform necessitates the replacement of National Police chief Gen. Listyo Sigit Prabowo, who bears ultimate responsibility for the recent wave of bloody demonstrations. Otherwise, it would be yet another example of institutional failure, with the police under Listyo’s leadership remaining entangled in serious abuses of power, a lack of accountability and persistent public distrust.
Listyo previously served as the head of the Criminal Investigation Agency (Bareskrim) and was inaugurated by then-president Joko ‘’Jokowi’’ Widodo as the National Police chief on Jan. 27, 2021, becoming the longest-serving police chief in years.
During his tenure, the police force under Listyo has faced several high-profile cases that caused widespread public anger. These controversies included the recent wave of demonstrations, the Kanjuruhan Stadium tragedy in Malang, East Java, on Oct. 1, 2022, and an online gambling scandal allegedly backed by police officers. The latter also involved police general, Ferdy Sambo, who last served as head of the Professional and Security Division (Propam), notorious for his role in the murder of his aide-de-camp, Nofriansyah Yosua Hutabarat.
Despite these serious controversies, Listyo’s position has remained politically secure. He is viewed as instrumental in safeguarding the political status quo during last year’s presidential election. His lengthy tenure reflects Jokowi’s strategy to ensure the National Police remain under his influence even after leaving office in 2024, despite President Prabowo Subianto’s prerogative to replace Listyo at any time.
However, any decision by President Prabowo to remove Listyo would be perceived by the public as a move to distance himself from Jokowi’s camp, which played a significant role in securing his electoral victory. Prabowo would prefer to avoid such a step in the interest of maintaining political stability, even though Jokowi holds no direct control over a political party.
Deputy State Secretary Bambang Eko Suhariyanto emphasized the central role of the Police Reform Committee, a body the President was expected to announce soon after returning from his recent overseas trip, but which has yet to materialize despite his return.
This ad-hoc committee will consist of seven to nine members, one of whom is expected to be former coordinating political, legal and security affairs minister Mahfud MD. Although it has not yet been formally established, Bambang noted that coordination between the committee and the National Police’s internal reform team is already underway.
On the other hand, Listyo appears determined to hold onto his position as a way of “saving” the police institution in its current state of crisis. He appears to be attempting a restructuring of the police force by replacing the head of the Intelligence and Security Agency (Kabaintelkam) and the commander of the Mobile Brigade Corps (Brimob), two units widely regarded as responsible for the unrest and casualties during the recent demonstrations.
However, these changes were also necessary since the previous officials had reached retirement age. Beyond ensuring his full control over these two strategic units, the reshuffle is also seen by some as a power-consolidation maneuver by Listyo.
Furthermore, on Sept. 17 Listyo established the Police Reform Transformation Team, chaired by Police Education and Training Institute chief Comr. Gen. Chryshnanda Dwilaksana. The team consists of 52 officers, 47 senior officers and five mid-ranking officers.
Deputy House of Representatives Speaker Sufmi Dasco Ahmad said this internal police team was formed to prepare data required for the broader police reform agenda initiated by the President. He emphasized that there was no conflict between the two reform teams.
Nevertheless, skepticism has emerged. The chairman of the Indonesian Legal Aid Foundation (YLBHI), Muhamad Isnur, questioned the credibility of the current reform teams, whether formed by the police or by the President. According to him, the involvement of individuals closely tied to the police would not bring about fundamental change within the institution.
Such skepticism is understandable, given that the recommendations of the Joint Fact-Finding Team (TGPF) for the Kanjuruhan tragedy have yet to be fully implemented by the police, particularly with respect to transparency and thorough investigations into all those responsible.
Indeed, police reform has proven extremely difficult to realize. Even during the early Reform era, when the People’s Consultative Assembly Decree No. VII/2000 mandated that police officers retire or change status if they wished to serve outside the police force, the reality today shows otherwise, according to former chief of the Indonesian Military’s intelligence agency, Soleman B. Ponto. According to him, there are currently 4,351 active police officers serving outside the formal police structure.
It is therefore unsurprising that within the first 100 days of President Prabowo’s administration, the National Police ranked as the least trusted law enforcement institution, with a public trust level of just 71 percent, significantly behind the Attorney General’s Office (77 percent), the courts (73 percent) and the Corruption Eradication Commission (72 percent).
This data starkly illustrates the depth of public mistrust and makes the case for a change of guard even more pressing.