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Brief Perspective on National

and International Shipping
Network in Indonesia

Connectivity Working Group Secretariat

National Development Planning Agency
(BAPPENAS)

23-25 July 2013

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Indonesia Competitiveness

Based on the report of the World Overall 

Country  Roads  Railroad  Port  Air Transport 
Infrastructure 
Economic Forum (WEF) of the latest
Singapore 2 2 5 2 1 
Global Competitiveness Report (2012-
Malaysia  25  27  17  21  24 
2013), Indonesian port service quality is
China 29 39 65 56 33 
ranked 104. Still lags behind Singapore,
Thailand 38 54 22 59 70 
Malaysia, China and India.
Indonesia 78 90 51 104 89 
India 59 86 27 80 68 
Philippines  65  87  94  120  112 
Vietnam 75 120 68 113 94 
Bangladesh 118 113 73 121 120 
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Origin – Destination for Freight

Transport

Goods Transportation Passenger Movement

9 Domestic good movement still 9 Most sea movements are long and medium distance
dominated by road modes except between North Sulawesi and Maluku.
9 International good movement 9 Maluku is now the busiest sea movement in Indonesia.
highly dependent in sea modes
9 Highly concentrated goods
movements in Java and
Sumatera

DISTRIBUTION OF
INDONESIA
POPULATION
Total Population
Indonesia 2010:
237.641.326
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Origin – Destination for Freight

OD for Freight Transport Transport

Characteristics of transport demand in Indonesia

OD for Freight Transport > 50.000 ton/ day OD for Freight Transport (20.000- 50.000) ton/ day
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Indonesian Main Ports by Economic Corridor

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Indonesian Port Traffic by Trade Flow and Cargo Type

2009 (000’s ton)
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Indonesian Port Traffic by Trade Flow and Cargo Type and Principal Commodity,
2009 (000’s tons)
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Number of Ships Passenger at Commercial and Non Commercial Sea Port, Indonesia
1995 - 2011 (Millions) in Indonesia
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Composition of Indonesian Flagged Cargo Vessels by Age

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Growth of National Fleet Cargo Share After Cabotage Principle

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Government Support
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Indonesian Cabotage Principle

LAW 17/2008; PP 22/2011; PM 48/2011

Large Number
of Islands

Foreign Vessel
Dependancy on
domestic shipping
and sea
transportation

Policy reforms

Presidential Instruction
No. 5/2005
National Shipping
Industry Empowerment
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Indonesian Cabotage Principle

Growth of
Large Number National Fleet
of Islands After Cabotage
Principle
Implementation

Foreign Vessel
Dependancy on
domestic shipping
and sea
transportation Growth Of
National Cargo
Share
(Dec 2007 – Feb 2013)

Policy reforms

Presidential Instruction
No. 5/2005
National Shipping
Industry Empowerment
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MP3EI

Strengthening national connectivity that considers regional and global

geostrategic position will be one of the main fokus of Master Plan for the
Acceleration and Expansion of Indonesia's Economic Development (MP3EI)
implementation
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MP3EI

Inter-island connectivity: needs

to be regionally differentiated

Legend: Konektivitas:
Pusat Distribusi Provinsi By sea / by rail By sea / by rail / by land By land / by rail / by sea

Pusat Distribusi Nasional
Short Sea Shipping
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MPAC Implementation

Bitung – General Santos – Davao Route

Dumai – Malacca Route

Belawan – Penang –
Phuket Route
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Opportunities
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Port Traffic Forecast by Economic

Development Corridor, 2030 (000 tons)
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Indonesian Ports – Container Traffic Forecast

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Final Notes
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Final Notes
ƒ Indonesia has a very strategic position in global and regional shipping network. It has a direct
access to the world’s largest market since it is passed by one of the most SLOC, i.e. The
Malaccan Strait and 3 SLOCs in Indonesia.
ƒ There are two main problems in port development in Indonesia. First, Indonesia’s main ports
are facing overcapacity which causes inefficiencies. Second, Indonesia also does not have
trans-shipment port capable of accomodating large trans-oceanic vessels. Huge investment
is therefore needed, as well as to strengthen the existing 32 strategic ports which are in poor
condition at the moment.
ƒ Indonesia still needs to strengthen its shipping because Indonesian-flagged vessels are
typically older that vessels operated by foreign shipping companies..
ƒ Government of Indonesia is currently implementing Master Plan for the Acceleration and
Expansion of Indonesia's Economic Development (MP3EI) to strengthen national connectivity
that considers regional and global geostrategic position.
ƒ In addition to strengthening national connectivity through MP3EI, Government of Indonesia is
in the process of developing ASEAN RO-RO Shipping network in coordination with Malaysia
and Phillipines to strengthen inter-island connectivity in ASEAN.
ƒ Indonesia can benefit from its strategic cooperation with Australia, as well as New Zealand,
and other Southwest Pacific islands states.
ƒ Government of Indonesia is committed to maintain the momentum of investment friendly
environment and is exploring all options in encouraging investment in infrastructure,
especially port development as backbone of national economic development corridor