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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Agus Harimurti Yudhoyono's recent political messaging can be interpreted as an attempt to achieve a delicate balancing act: positioning himself and the Democratic Party as a critical voice within government without crossing the line into outright opposition. It is a strategy born from both opportunity and necessity. For Agus, the political challenge is obvious. While he remains one of Indonesia's most recognizable younger politicians, he has not consistently appeared among the top-tier contenders in most discussions about the 2029 presidential election.
The dominant attention has largely been focused on figures with stronger executive credentials, deeper political machines or higher public popularity. If Agus hopes to become a serious presidential contender, maintaining the status quo is not enough. He needs greater visibility, a more distinct political identity and a narrative that separates him from the many parties supporting the government.
This helps explain the significance of his speech. Rather than offering unconditional praise for the administration, Agus appeared to emphasize themes of accountability, governance and the need for those in power to remain responsive to public concerns. The message was notable not because it represented a complete break from the government, but because it subtly challenged the perception that coalition parties must always defend the administration's every move.
The strategy serves multiple purposes. First, it allows the Democrats to reclaim part of their traditional identity as a centrist reformist party. Since joining the governing coalition, the party has enjoyed access to government but has also risked losing its distinctiveness. In a broad coalition dominated by larger political forces, smaller parties can easily become politically invisible. By adopting a more critical tone, the Democrats can remind voters that it possesses an independent voice.
Second, it helps 48-year old Agus personally. Indonesian presidential politics tends to reward leaders who appear decisive and independent rather than excessively dependent on existing power structures. If Agus is perceived merely as another coalition politician benefiting from office, his appeal may remain limited. If he can present himself as a leader willing to speak uncomfortable truths while still acting responsibly, his profile could improve significantly ahead of 2029.
The danger for Agus is that repeated efforts to distinguish himself could eventually be interpreted by coalition partners as positioning for a future campaign at their expense. If that perception grows, the Democratic Party could find itself marginalized in decision-making, deprived of influence or ultimately pushed toward the political sidelines. Even without formal expulsion from the coalition, a party can become isolated and lose much of the practical advantage that comes from being part of government.
Yet political history suggests that such an outcome may not necessarily be disastrous. The most relevant example comes from Agus’ own father, Susilo Bambang Yudhoyono (SBY). During the administration of President Megawati Soekarnoputri, SBY served as coordinating minister for political and security affairs. As tensions emerged between him and elements within the government, he increasingly appeared marginalized. His resignation and departure from the cabinet were widely interpreted as signs of political isolation.
At the time, many viewed that isolation as a setback. Instead, it became a turning point. SBY successfully transformed himself into an alternative to the incumbent establishment. By portraying himself as a capable insider who was nevertheless willing to challenge the status quo, he appealed to voters seeking change without revolutionary disruption. In the 2004 presidential election, he defeated Megawati and became Indonesia's first directly elected president.
The parallel is not exact. The political environment of 2029 will differ significantly from that of 2004. SBY entered the race with substantial public popularity, military credentials and a national profile developed through years of government service. Agus has yet to achieve a similar level of political strength. Furthermore, Indonesia's party system today is more fragmented and coalition-based than it was two decades ago.
Nevertheless, the historical lesson remains relevant. Being pushed away from power is not always politically damaging. In some circumstances, it can become a political asset if it allows a leader to embody both experience and independence. This may ultimately be the calculation behind Agus’ approach. The ideal scenario is to gain the benefits of both worlds: remain inside the governing coalition, enjoy access to executive power and simultaneously cultivate an image as a principled critic. That would increase his visibility without sacrificing influence.
The problem is that such a balance is extremely difficult to maintain. For Agus, the coming years may therefore be defined by a central political question: can he successfully become Indonesia's most prominent "critical insider," or will his attempt to create distance from power eventually force him to choose between government influence and opposition credibility?
