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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For nearly four months wildfires have ravaged Indonesia, exposing acute, systemic failures in government response and law enforcement. While the ongoing dry spell has exacerbated the crisis, suspected corporate land clearing by burning points to a deliberate, recurring practice that authorities have repeatedly failed to halt.
The scale of the destruction is alarming. At an emergency meeting with President Prabowo Subianto on Oct. 12, the National Disaster Mitigation Agency (BNPB) reported that 129,899.6 hectares of peatland had burned across six priority provinces: Central Kalimantan, South Kalimantan, West Kalimantan, South Sumatra, Jambi and Riau. Although officials claimed most blazes had been extinguished, active firefighting continued across another 639.2 ha. Furthermore, these figures omitted fires that had been burning unchecked across Papua for weeks.
Prabowo’s downplaying of the crisis, insisting that only a small area was still ablaze, contradicts the humanitarian toll on the ground. By Oct. 13, cases of respiratory infections linked to toxic haze had reached 283,270 across seven provinces.
Air quality measurements expose the depth of the public health emergency. On Oct. 15, the air quality index (AQI) in Pangkalan Bun, Central Kalimantan, spiked to a staggering 982, more than three times the minimum for the “hazardous” level, while Pontianak in West Kalimantan logged 280, near the upper range of the “very unhealthy” level. Even Jakarta, notorious for chronic pollution, recorded a far lower AQI of 176. Progress cannot be measured merely by hectares extinguished; it must be judged by the state's capacity to protect human lungs and prevent recurrent catastrophe.
The fallout has long breached national borders: Singapore recorded its highest PM2.5 readings of the year on Oct. 14, Timor-Leste shuttered classrooms for three days starting on Oct. 15, and Malaysia closed schools across several states as transboundary haze intensified. The crisis has evolved from an internal ecological disaster into a regional health and diplomatic liability.
Public patience has run out. Grassroots outrage has surged across social media, where campaigns like “Our Forests Are Still Burning” have amassed millions of shares. Yet the backlash targets not only environmental devastation but also presidential priorities. While millions choke on toxic smoke, President Prabowo has maintained routine appearances at soccer events and taken foreign trips. Whatever diplomatic or political justifications these engagements carry, the optical disconnect is glaring: a presidency conducting business as usual while citizens gasp for clean air.
The fury has migrated to the streets. On Oct. 13, student protesters picketed the South Sumatra Police headquarters in Palembang, demanding criminal accountability for corporate fire starters. The previous week on Oct. 5, they had rallied outside the South Sumatra Governor’s office demanding transparency in wildfire management expenditure, real enforcement against offending agribusinesses and institutional accountability.
El Nino alone cannot serve as an alibi. In South Sumatra's Ogan Komering Ilir regency, firefighters from the Forestry Ministry’s Manggala Agni brigade uncovered burned plots in Pedamaran district that had been leveled by heavy machinery and prepared for planting, while neighboring oil palm concessions remained untouched. The site bore all the hallmarks of intentional arson to facilitate cheap plantation expansion.
The state’s diplomatic posturing has also invited skepticism. After Japan deployed Self-Defense Forces helicopters to help fight blazes in Kalimantan throughout September, Indonesia abruptly terminated the mission on Sept. 29, saying it could handle the rest domestically. Neighbors Malaysia and Singapore have likewise offered assistance.
The national emergency apparatus is undeniably active: Tens of thousands of personnel are deployed alongside heavy-duty pumps and deep well rigs. However, self-reliance is admirable only when backed by results. When toxic haze crosses international boundaries, national pride must yield to regional responsibility.
Subsurface peat fires are notoriously obstinate, smoldering underground for weeks before flaring anew. But precisely because these conditions are well understood, prevention must take precedence. Indonesia has grappled with this disaster cycle for decades; nothing about this year’s crisis was unpredictable.
The fundamental flaw remains the chasm between reactive mobilization and structural prevention. Credible governance demands year-round surveillance, early intervention, firm prosecution of corporate culprits and total transparency in burned area data. When civil society groups document burned acreage far exceeding official reports, public trust erodes.
Prabowo’s rhetorical calls for prevention will mean nothing if enforcement lapses persist before the next dry season. The government must blacklist culpable firms, protect peatlands and prosecute offenders before seasonal haze hardens into an annual public health crisis. These wildfires are a test of whether Indonesia can enforce its own laws, protect its populace and honor its international commitments. Quelling the flames is not enough; the state must end the culture of impunity that ignites them.
