Indonesia Logistics Infrastructure Narrative
Although Indonesia has been significantly impacted by a number
of natural disasters, there is significant logistics capacity
nationally. In the provinces, the majority of the population are
able to be accessed by asphalt roads and there are a number of sea
ports located throughout the country which enable large scale
movement of cargo by sea.
The structure of the primary logistics providers is that they are
controlled by the Indonesian government. The sea ports (Pelindo),
airports (Angkasa Pura), passenger ferries (ASDP), airlines (Garuda
Indonesia) are controlled by majority owned government entities.
Currently substantial investment is on-going on these logistics
hubs, in particular with new seaports being constructed in Surabaya
and airports under-going extensive renovations or new development
areas such as Bali, Medan and Kupang. Private companies also
operate in the land transport and shipping areas to supplement
logistics movements.
The most substantial constraint that is faced by logistics
operations within Indonesia is road congestion. Congestion of the
roads can add hours or days onto transit times for cargo movements.
This congestion is most evident within the larger cities, as well
as the exit and entry in major sea ports.
Projects are underway to improve road access, for example the Trans
Papua road which is set to connect all of Papua province. However,
the construction of these roads is complex and expensive so may
take years to reach completion.