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

October 5, 2026

Indonesia has once again been forced to confront an uncomfortable question: What happens to the principle of equality before the law once the courtroom doors close?

The question has resurfaced with renewed urgency following a Sept. 23 inspection by the Indonesian Ombudsman at Cibinong Penitentiary in West Java, which uncovered what appeared to be a cluster of well-appointed private residences built directly inside the prison complex. Footage of the unannounced visit quickly went viral. The quarters were furnished with amenities far more typical of serviced apartments than correctional cells, featuring air conditioners, flat-screen televisions, refrigerators, plush sofas and formal dining tables. At one point, an individual was captured hurriedly shutting a door as investigators approached, evidently attempting to evade scrutiny.

According to the Ombudsman, the inspection team identified more than 10 house-like structures on the grounds, alongside luxury vehicles, a fully equipped gym and a golf simulator under construction. One occupant identified himself as an inmate, though correctional officers quickly intervened to block further questioning.

The revelations provoked swift public outcry, fueling demands to uncover how such accommodation could exist inside a state penitentiary and who authorized their use. To its credit, the government acted rapidly. On Sept. 25 and 26, the Immigration and Corrections Ministry questioned 52 inmates and more than 50 facility staff members. On Sept. 26, the ministry suspended Cibinong warden Wisnu Hani Putranto alongside four senior administrative officers pending a full inquiry. Yet subsequent disclosures revealed problems that run far deeper than unauthorized comforts.

During a Sept. 28 hearing before House of Representatives Commission XIII, Director General of Corrections Mashudi conceded that the Cibinong compound housed 16 residential units, 13 of which were never registered as state assets. Mashudi maintained that the buildings were intended as official staff residences and assimilation facilities rather than illicit cells. However, he also admitted that two inmates, Ahmad Albani and Hasan Tjhie, were present inside the facilities during the inspection. Both men were convicted in the high-profile PT Timah graft case, each handed 10-year sentences by the Jakarta High Court in 2025.

The Ombudsman laid out even more troubling details during a separate hearing before House Commission II the following day. Investigators revealed that corruption convict Jimmy Masrin, the former president commissioner of PT Petro Energy sentenced in March 2026 in the Indonesia Eximbank graft case, was suspected of occupying one of the luxury units. Furthermore, the team discovered CCTV equipment throughout the residential enclave, directly contradicting the warden’s earlier assertion that the area lacked surveillance, though investigators could not immediately confirm whether the cameras were operational.

Compounding the issue of preferential housing, the Ombudsman cited reports from inmates’ families alleging that prisoners were routinely subjected to illegal levies of Rp 150,000 (US$8.40) per week simply to secure basic treatment. The scandal has therefore moved well past the initial shock of opulent interiors. The pressing issues now center on administrative complicity: who authorized access, how these shadow assets operated outside state registers and to what extent wealth and connections continue to purchase an entirely different reality behind bars.

Cibinong is hardly an anomaly in Indonesia’s correctional history. In January 2010, the Judicial Mafia Eradication Task Force discovered corruption convict Artalyta Suryani, better known as Ayin, occupying an exclusive suite at East Jakarta’s Pondok Bambu Women’s Penitentiary complete with an air conditioner, television, refrigerator and private bathroom. Seven years later, the National Narcotics Agency seized unauthorized communication rigs and electronics from the cell of drug lord Harianto Chandra at Cipinang Penitentiary in East Jakarta.

By 2018, the Corruption Eradication Commission uncovered an extensive luxury-cell racket orchestrated by the warden at Sukamiskin Penitentiary in Bandung, West Java, catering to high-profile figures such as Fahmi Darmawansyah, Setya Novanto and Muhammad Nazaruddin.

Then came the defining image of correctional impunity: Gayus Tambunan. In 2010, the former tax official was photographed wearing a wig in the stands at an international tennis tournament in Bali while nominally in detention. His case demonstrated that behind Indonesian prison walls, privilege can secure not just creature comforts, but the freedom to bypass detention altogether.

As early as 2011, Indonesia Corruption Watch mapped out five systemic vectors of prison graft: preferential amenities, unauthorized leave, remission tampering, extortion of inmates' families and the use of substitute inmates to serve sentences on behalf of wealthy convicts. What the Ombudsman exposed in Cibinong mirrors those decade-old findings almost point for point.

The foundational question is no longer what is happening, but why the system remains incapable of preventing it, even after President Prabowo Subianto formed a ministry dedicated to deal with the issue in 2024. The law may appear egalitarian in the courtroom, but if money and influence continue to command VIP treatment behind prison walls, the constitutional promise of equality before the law remains elusive.

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