Investment Opportunities in Indonesia - Transportation Sector

Indonesian territory covers the world’s largest archipelago, with 17,000 islands and a population of 260 million. This makes transportation development, particularly in the connectivity of land, sea and air transport, a crucial factor in efforts to boost international competitiveness and support Indonesia’s economic growth.

Indonesia’s size and geography means that there are many regions where development has lagged and where infrastructure and public transport needs to be developed or where existing infrastructure requires optimizing and modernizing. Establishing and coordinating an integrated transport infrastructure in Indonesia requires massive funding, but it is needed to improve logistics for commerce and to mobilize the large population. The benefits of this development will flow to the economic and social wellbeing of the country as well as supporting national interests in politics and defense.

In addition to the long term benefits, transport development in itself will stimulate regional economic growth, so all transportation projects, both macro and micro will play a strategic part. The Indonesian Government through its Ministry of Transportation is now encouraging local and foreign private sector investment in transportation infrastructure through a creative alternative funding mechanism. This mechanism is designed to provide funding for development through Public Private Partnerships (PPP), to relieve the Government of pressure on its budget and to involve the private sector in creating local and global inter-connectivity.