Indonesia Transport

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Faced with ever-growing congestion in the movement of people and goods across the archipelago, the government is clear that improving and diversifying Indonesia’s logistics network stands at the heart of its efforts to boost economic growth above 7%. Air passenger traffic has continued to grow, with the large domestic market flocking to the growing...

Domestic passengers have been the main drivers of growth in air transport for the past decade – more than 52m Indonesians were expected to fly domestically in 2011, around half of which on a single low-cost operator, Lion Air, which also runs Wings Air. Sustained competition in the low-cost segment has continued to keep rates low, while rising...

How have economic conditions perpetuated the need to address issues of connectivity?

Strong domestic market growth has been a boon to Indonesia’s logistics industry. Although the concept of “just-in-time” may seem inappropriate given congestion levels, the sector has grown on average 7.7% annually over the past seven years, showing its resilience to the recent global economic crisis. If the government is successful in improving the...

To what extent will increasing domestic and international passenger traffic offset rising fuel prices?

The year 2011 marks the implementation of the 2008 shipping law, a far-reaching reform of maritime transport that provides space for private sector participation in infrastructure development. Yet the rules also include a degree of protection in that they require domestically flagged vessels to ship goods across the archipelago. “There is a clear...

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