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Major transport, logistics challenges for next government
The incoming government's five-year transportation and logistics infrastructure plan should aim beyond simply continuing the outgoing government's projects and seek to build upon its achievements.
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A long line of vehicles forms on April, 15, 2024 along the Jakarta-Cikampek Toll Road leading up to the Cikampek Utama tollgate in Karawang, West Java. (Antara/Akbar Nugroho Gumay)
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ccording to a World Bank report, Indonesia's logistics performance fell to 61 out of 139 countries in 2023, down from 45th in 2018. The fall in ranking was due to its score in the logistics component, despite an improvement in its physical infrastructure score.
Indonesia ranks below Singapore (1st), Malaysia (31st) and Thailand (37th). Addressing this challenge is crucial for Indonesia to compete globally, particularly in Southeast Asia, to attract more investments to the country.
President-elect Prabowo Subianto and vice president-elect Gibran Rakabuming Raka have prepared various plans to enhance the country’s transportation and logistics infrastructure over the next five years. Will the incoming president also focus on improving development equality?
Over the two terms of President Joko “Jokowi” Widodo, significant progress was achieved in infrastructure development, encompassing highways, airports, seaports and railways. According to the National Development Planning Agency (Bappenas), operational toll roads reached 2,687 kilometers, public roads were extended by 549.16 km, airports numbered 287 and seaports totaled 3,157 during the Jokowi administration,
Prabowo and Gibran are committed to continuing these projects, especially those nearing completion or requiring capacity enhancements. However, significant challenges still persist to this day.
First, financing remains a major issue. Infrastructure development requires substantial funds, yet the state budget is limited. The government needs to explore alternative sources of financing, including partnerships with the private sector and foreign investments.
Second, land acquisition issues often lead to delays or abandonment of infrastructure projects. The Prabowo-Gibran administration must formulate fair and efficient land acquisition policies while respecting landowners' rights.
