Transport & Logistics

With logistics costs among the highest in ASEAN at around 25-30% of GDP, transportation improvements are high on the priority list when it comes to boosting Indonesian growth. Indonesia is investing in plans to boost the road network from 4400 km to 8666 km of roads by 2015. Rail is set for a similar upgrade, with plans that include the Trans-Java high-speed railway. Meanwhile, with 17.6% growth in traffic at Jakarta’s international airport, capacity expansion is highly necessary. The airport opened a third terminal in 2011 and will renovate the existing two, although rumours of a new airport are gaining momentum. Many of these expansion projects will be funded under public-private partnership agreements, which have been the focus of political contention over apparent delays. This chapter includes interviews with Emirsyah Satar, President & CEO, Garuda Indonesia; and Shanti L Poesposoetjipto, Chairman, Samudera Indonesia Group.