Indonesia Freight Transport Report - Business Monitor International - Industry Reports

Indonesia Freight Transport Report

Indonesia Freight Transport Report - Business Monitor International - Industry Reports
Indonesia Freight Transport Report
Published Oct 31, 2015
59 pages — Published Oct 31, 2015
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BMI View: In ---- the air freight mode will see the most significant growth in Indonesia, as trade in Asia is set to rebalance after stalling in ---- and key sectors such as the pharmaceutical market will see a boost in growth. In our medium-term forecast to ----, BMI believes the rail and air freight modes will see higher growth than road freight transport, as a result of state and external investment in upgrading rail networks and higher growth in key air freight indicators. ...Coupled with robust growth in GDP income per capita - above -- in the medium-term - and steady real private consumption growth (reaching -.- in ---- and above - from ---------), we see healthy indicators all round for Indonesia s economic growth. The country s large domestic market, low land and labour costs and proximity to other South East Asian and East Asian markets make it an attractive manufacturing hub and freight transport destination - which is further boosted by the country s ports and shipping routes. External factors in the medium-term such as a further economic slowdown in China and the rest of Asia could pose a threat to maintaining growth. ...President Joko Widodo s government is making efforts to secure this boost, with the third phase of the National Long Term Transport Sector Plan - running from --------- - aiming to achieve greater integration of infrastructure across the archipelago nation. The final phase should complete the incorporation of transport networks for regional connectivity, including remote regions which have lower quality roads and lesser access to well-connected routes.

...Prospects for the country s rail freight industry bode well over the medium term, growing at an average rate of -.- until ----, a higher rate than both road (-.- ) and air (-.- ). However, in ---- we see a slowing down to -.- to our estimate for ---- of -.- . ...President Joko Widodo is still pursuing a series of moves to improve rail infrastructure, particularly in the form of high- and medium-speed rail projects, some of which are attracting intense international bidding competition. In the medium-term the shrinking of the trade in both ores and metals and iron and steel is set to reverse, moving into higher figures in our medium-term forecast period, which will also help drive the higher rail growth figures we see towards ----. This quarter we have revised down our estimates for Indonesia s ---- air freight total tonnage, down to -.- growth when previously we had forecast growth of -.- . ...In ---- we forecast that growth will more than double from the ---- rate to -.- . Improvements in safety, capacity and regulation over the coming years will add to Indonesia s competitiveness as a global player and continue to encourage investment, as well as confidence from international partners.

...China has reportedly won a contract over Japan to build a USD-bn rail project between Jakarta and Bandung on the island of Java, ending a drawn-out process that included two reversals by the Indonesian government. However, it should be pointed out that although the contract has sparked intense competition, the project is no longer technically a high-speed railway (it is now a medium-speed railway) and will not make a significant difference to Java s rail infrastructure. ...

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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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Business Monitor International - Industry Reports. "Indonesia Freight Transport Report" Oct 31, 2015. Alacra Store. Jun 23, 2018. <>
Business Monitor International - Industry Reports. (2015). Indonesia Freight Transport Report Oct 31, 2015. New York, NY: Alacra Store. Retrieved Jun 23, 2018 from <>
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