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...
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...
The government is pressing ahead with its liberalisation drive to upgrade physical infrastructure and reduce the cost of doing business for the nation’s dynamic private sector. The Regional Long-Term Development Plan, (Rencana Pembangunan Jangka Menengah, RPJM), running from 2005 to 2024 in a succession of five-year strategies, provides the umbrella...
Traffic in the Greater Jakarta region is increasingly slowing down, as the number of vehicles on the roads rise. In 2010 there were 11.3m vehicles in the metropolitan priority area of Jabodetabek (Greater Jakarta), with 1.5m of these in Jakarta alone, according to the Ministry of Transport. The majority of these are two- or three-wheelers weaving...
The advent of new rules on cabotage, coupled with vibrant GDP growth, a strong rupiah and robust domestic consumer demand, has put Indonesia’s merchant fleet under considerable pressure on to deliver. This has resulted in a surge of boat buying by the country’s shipping companies, with financing for this capital expenditure (capex) a going concern...
As part of its new drive to address the country’s historic transport problems, the government is turning its attention to Indonesia’s rail network. The rail system is currently far shorter and more fragmented than its neighbours, with one Trans-Java network and three self-contained lines in Sumatra. Moreover, of the roughly 6900 km of narrow-gauge (...
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