Indonesia Transport

As demand for environmentally sustainable transport grows, a number of emerging markets are ramping up their efforts to incentivise the sale and production of electric vehicles (EVs).

Strong growth in the domestic and foreign travel market, combined with a commitment to boosting capacity as part of large-scale transport infrastructure development, is driving investment in Indonesia’s aviation sector.

Investment in maritime infrastructure and greater support for the shipbuilding industry look set to raise Indonesia’s freight-handling capacity, moving the country closer towards its goal of becoming a top global maritime player.

With its low debt-to-GDP ratio, abundant resources, growing consumer demand, healthy political discourse and rising investment, Indonesia is set to lead the region and could become the world’s sixth-largest economy by 2030. But its bright future remains at risk due to bottlenecks that are the result of the lack of infrastructure and of the low quality of what is already in place.

The development of Indonesia’s road network has not always kept pace with its impressive rate of economic growth in recent years but the government is committing substantial resources to overhauling the system, with a number of key projects under way and opportunities for the private sector growing.

The country’s airlines are benefitting from rapidly increasing demand throughout the archipelago and beyond as they look towards international expansion. With one airline having recently signed the largest single deal in aviation history and expansion of airports underway the sector is experiencing a structural turnaround.