Transport & Logistics

Indonesia’s transport sector is in the midst of a major overhaul, with government investment in infrastructure set to hit an all-time high, driven by new projects. All segments in the sector are set to benefit from a far-reaching infrastructure development agenda, with plans to construct 2500 km of new highway to complement ongoing upgrades across Indonesia’s vast network of ports and airports. Perhaps most promisingly, 2015 saw solid progress towards the delivery of a national rail network, with the signing of a new agreement for a high-speed link on Java, although land acquisition continues to pose challenges, raising doubts as to whether the project will be completed on time and within budget. At the same time, public funding is still insufficient to meet its long-term infrastructure goals, opening a host of new opportunities to foreign investors, with the government moving to revise its negative investment list to permit increased foreign participation.

This chapter contains interviews with Elfen Goentoro, President-Director, PELNI; and Bambang Tjahjono, President-Director, AirNav Indonesia.