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

May 22, 2026

The Presidential Palace has partnered with the Indonesia New Media Forum (INMF) in a move it says could significantly expand its social media reach, potentially adding up to 100 million views per day.

Muhammad Qodari, head of the Government Communications Agency (Bakom), announced the initiative following a May 7 meeting with the group. He described INMF members as “homeless media,” referring to small, social media–based outlets that operate outside conventional institutional structures.

Typically run by one to five people, these outlets rely on platforms such as Instagram, TikTok and YouTube rather than traditional websites to distribute content. Despite their limited organizational scale, many have built large followings, underscoring their growing presence in Indonesia’s digital media landscape.

The partnership appears to align with Qodari’s stated approach to government communication. Upon his appointment in late April, he said the administration would promote its programs “intensively, proactively and aggressively.”

Formed in July 2025, INMF provides a collaborative platform for social media-based publishers adapting to shifts in how audiences consume news and information. The latest announcement signals official recognition of the group’s role in that evolving environment.

The initiative also comes as President Prabowo Subianto adjusts his communications strategy. In April, he reinstated political consultant Hasan Nasbi as special adviser on communication. Hasan previously worked on the presidential campaigns of Joko “Jokowi” Widodo in 2014 and 2019 and Prabowo in 2024.

Hasan had resigned as head of the presidential communication office in April 2025, reportedly due to internal differences. His return suggests continuity in shaping the administration’s public messaging.

He has said the INMF partnership does not constitute a formal working relationship between the government and its members. Rather, he described it as an effort to adapt official communication to current media consumption patterns, particularly on platforms that operate beyond traditional corporate frameworks.

More than a year and a half after Prabowo’s inauguration in October 2024, survey data show his approval rating remains above 70 percent, indicating sustained public support.

The President however continues to face criticisms, mostly online, although that digital space is also shrinking with reports of harassments against critics, mostly scholars and activists and a handful of critical media.

At the same time, the development highlights broader changes in the media ecosystem. Traditional print and broadcast outlets now share audience attention with a wide range of digital actors, including independent content creators, citizen journalists and online influencers.

Following Qodari’s remarks, several media organizations clarified their positions regarding INMF.

Narasi, founded by journalist Najwa Shihab, said it is not part of the forum and emphasized that it is registered with the Press Council and adheres to established journalistic standards.

Indozone, which targets millennial and Gen Z audiences, also stated that it remains independent and has no formal ties to the government. It added that its editorial staff have undergone professional competency certification. Qodari said the partnership would help expand the government’s public outreach. However, details regarding specific arrangements with INMF members were not elaborated, other than that participating outlets would have access to government information similar to conventional media and could receive support to improve reporting quality.

Many social media-based outlets do not have formal corporate structures, meaning they do not meet Press Council registration requirements and are not covered by protections under the 1999 Press Law. Nevertheless, many maintain verified social media accounts that signal authenticity to their audiences.

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