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
The Nusantara Capital City (IKN) and the Sarawak Government of Malaysia has met to discuss opportunities for collaboration in various sectors. The meeting took place at the IKN Authority Office on Dec. 10, 2025. It was a strategic opportunity to explore potential cross-sector cooperation and investment, ranging from transportation, education, health, and culture.
The Sarawak Government is also preparing to authorize direct flight routes to several areas in Kalimantan Island, including the IKN. The route will be operated by AirBorneo, Sarawak's newly-founded state-owned regional airline. The opening of the route is expected to strengthen the flight network in Kalimantan and support the operation of the Nusantara International Airport.
"We are on the same island of Kalimantan. [Thus,] we are very interested in the development of Nusantara. As fellow territories in Kalimantan, we would also be proud if the whole world will eventually come to Nusantara," said Sarawak Minister of Transport Lee Kim Shin in a written statement on Dec. 11, 2025.
Lee also touched on his plan to develop a transnational railway line connecting various territories in Kalimantan Island.
"In addition to air transportation, we are also reviewing the development of a railway line connecting three countries: Indonesia, Malaysia, and Brunei Darussalam," he explained.
IKN Secretary Bimo Adi Nursanthyasto, welcomed the plan. He also highlighted the importance of improving regional connectivity.
"The Nusantara [International] Airport will soon be operational as a commercial airport. This will facilitate mobility to and from the capital city. If the transnational railway line is realized, it will also stimulate the Southeast Asian economy and demonstrate the strong economic dynamics of the region to the world," he stated.
For collaboration in the healthcare sector, Sarawak, which boasts great healthcare facilities, is open to collaboration with hospitals in the IKN, including in medical research, which could mutually strengthen service capacity. For the cultural sector, Sarawak and the IKN, with their shared cultural roots, see opportunities for developing joint cultural exchange programs and events in the future, such as a potential chopstick competitions.
