Below is a list with tagged columns and company profiles.

Today's Headlines Transportation

  • Construction Jakarta-Bandung High-Speed Railway Project to Start?

    Construction Jakarta-Bandung High-Speed Railway Project to Start?

    Next week construction of the high-speed Jakarta-Bandung railway project may finally start as the government is set to issue the necessary construction permit that allows for the development of Indonesia's first-ever high-speed railway project. This railway will connect Indonesia's capital city of Jakarta to the city of Bandung in West Java. Although the groundbreaking ceremony was conducted in January 2016 the project - similar to many other infrastructure projects in Indonesia - has been plagued by a long delay.

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  • Weak Infrastructure Blocks Investment in Indonesia's Cold Storage Industry

    Weak Infrastructure Blocks Investment in Indonesia's Cold Storage Industry

    The cold storage industry of Indonesia needs IDR 12 trillion (approx. USD $902 million) of additional investment in order to raise installed capacity to a sufficient level. Currently, Indonesia still has to cope with a deficit in terms of the availability of cold storage facilities. This causes a problem for the preserving as well as the transportation of (processed) seafood, chicken meat, fruits and vegetables. At the start of 2016 the Indonesian government announced it would open the cold storage industry to foreign investment for the full 100 percent. However, investment realization has been limited.

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  • Indonesia's Mudik Travelers Estimated to Rise in 2016

    Indonesia's Mudik Travelers Estimated to Rise in 2016

    The Transportation Ministry of Indonesia predicts that there will be around 18 million people traveling back to their places of origin ahead of this year's Idul Fitri celebrations (the days that mark the end of the Ramadan fasting month). This prediction is 3.3 percent higher than the flow of people during last year's Idul Fitri (17.4 million). The annual exodus of Indonesian workers and professionals from the cities back to their hometowns - to spend some days with their parents - ahead of Idul Fitri (Lebaran) is called mudik in Indonesian.

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  • Government of Indonesia Preparing 11th Economic Stimulus Package

    Government of Indonesia Preparing 11th Economic Stimulus Package

    The government of Indonesia is currently preparing the 11th economic policy package. Chief Economics Minister Darmin Nasution told reporters that this 11th package will focus on curtailing Indonesia's logistics costs, reducing dwelling time at Indonesian harbors, and improving the investment climate of Indonesia. He expects the 11th package to be unveiled next week. Since September 2015 the Indonesian government has unveiled ten economic stimulus packages. These packages aim to boost economic growth in Indonesia through deregulation, tax incentives and by opening room for foreign investment.

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  • New Cities and Economic Centers along the Jakarta-Bandung Railway

    New Cities and Economic Centers along the Jakarta-Bandung Railway

    Indonesia's first high-speed train, which will run between Jakarta and Bandung (in West Java) is expected to give rise to new economic centers and cities along the 142 kilometers-long railway. Construction of the project, estimated to cost a total of USD $5.5 billion, is scheduled to kick off on 21 January 2016 in Bandung as Indonesia's Transportation Ministry has finally issued the track permit (this had been a major hurdle previously).

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  • Indonesia Cancels Jakarta-Bandung’s High-Speed Train Project

    Indonesia Cancels Jakarta-Bandung’s High-Speed Train Project

    Indonesia has cancelled further development of the multi-billion high-speed railway between the capital city of Jakarta and Bandung (West Java) as President Joko Widodo decided that Indonesia does not need a train that can reach speeds of over 300 km per hour on the relatively short route (150 km) between both cities. Besides the short distance, there will also be around 14 stations constructed between both terminal stations, implying that the train needs to hit the brakes before it can reach its maximum speed.

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  • Indonesia’s July Inflation Rises 0.93% on Higher Food & Transportation Prices

    Indonesia’s July Inflation Rises 0.93% on Higher Food & Transportation Prices

    Inflation in Indonesia accelerated more than expected in July 2015. Based on the latest data from Statistics Indonesia (BPS), Indonesian inflation rose 0.93 percent (m/m) in July, primarily due to higher food and transportation costs caused by the Ramadan month and Idul Fitri celebrations. During this month, the people traditionally increase consumer spending (triggering higher food prices) and millions of people travel back to their places of origin for the Idul Fitri festivities (triggering higher transportation costs).

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  • Ramadan & Infrastructure in Indonesia: Idul Fitri Exodus Estimated at 20 Million

    Ramadan & Infrastructure in Indonesia: Idul Fitri Exodus Estimated at 20 Million

    It is estimated that about 20 million Indonesians will travel back to their hometowns during the Idul Fitri (also known as Lebaran) celebrations that mark the end of the Ramadan (the Islamic holy fasting month) next month. This homeward bound traveling is locally known as mudik. The annual mudik tradition involves millions of Indonesians taking time off from work, leaving their urban residences and travel back to their places of birth in the rural areas for a few days. During these days cities become empty.

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  • Inflation Update Indonesia: May Inflation Rises Beyond Expectation

    Inflation Update Indonesia: May Inflation Rises Beyond Expectation

    Inflation in Indonesia accelerated higher than expected in May 2015. Based on the latest data from Statistics Indonesia (BPS), announced today, Indonesia’s consumer price index rose to 7.15 percent (y/y) in May, from 6.79 percent (y/y) in the preceding month. The primary reason for higher inflation is rebounding oil prices thus causing higher prices at fuel pumps. As fuel subsidies have been largely cut at the start of 2015, the recent rising global oil prices now cause serious inflationary pressures in Indonesia.

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  • Inflation Update Indonesia: November Inflation Rises to 6.23% Y/Y

    Indonesia’s Central Statistics Agency (BPS) announced on Monday (01/12) that the country’s inflation figure accelerated to 6.23 percent year-on-year (y/y) in November 2014 (from 6.23 percent y/y in the previous month) due to the impact of higher subsidized fuel prices implemented by the Indonesian government. On 18 November, prices for subsidized fuels (low-octane gasoline and diesel) were raised by more than 30 percent in a bid to reallocate public spending from fuel consumption to productive long-term development.

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Latest Columns Transportation

  • Inflation Update Indonesia: "April Inflation Higher than Usual"

    Inflation Update Indonesia: April Inflation Higher than Usual

    Inflation in Indonesia is expected to accelerate to 6.80 percent year-on-year (y/y) in April 2015, from 6.38 percent y/y in the previous month, according to the central bank of Indonesia (Bank Indonesia). As global oil prices have somewhat recovered from their recent lows, they add inflationary pressures in Indonesia (higher transportation costs). On a month-on-month (m/m) basis, Indonesian inflation is expected to be around 0.35 percent in April. This figure would be in sharp contrast to ‘normal’ April inflation.

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  • Tourism in Indonesia: Record High Number of Foreign Visitor Arrivals

    The total number of foreign tourist arrivals to Indonesia in 2014 was 9.44 million, up 7.19 percent from the preceding year, meaning that the government target of welcoming 9.3 million foreign tourists last year was achieved. As usual, most foreign tourists entered Indonesia through the Ngurah Rai International Airport in Bali, the most famous tourist destination in the world’s largest archipelago. During the whole year of 2014 a total of 3.71 million foreigners spent some time on Bali.

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  • Soekarno-Hatta Railway Project Indonesia: Tendered to Private Sector

    Soekarno-Hatta Railway Project: Fully Tendered to Private Sector

    The Indonesian government changed the funding scheme for the construction of the Soekarno-Hatta International Airport Railway project (which will connect Soekarno Hatta International Airport, located nearby Jakarta, and Halim Airport in Jakarta). Previously, it was planned that this project, valued at IDR 26 trillion (USD $2.1 billion), would be offered through a public-private partnership (PPP) construction in which the Indonesian government would finance 55 percent of the costs. Now, however, the project is offered fully to the private sector.

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  • Infrastructure Indonesia: Tender Soekarno-Hatta Airport Railway Delayed

    Infrastructure Indonesia: Tender Soekarno-Hatta Airport Railway Delayed

    The prequalification tender for the construction of the Soekarno-Hatta International Airport Railway project has been postponed until late October 2014 (from August) as agreements with several stakeholders still need to be finalized. For example, the government is yet to underwrite part of the required investment. Indonesia’s Ministry of Transportation proposes to underwrite IDR 13.5 trillion (USD $2.3 billion) - approximately 49 percent of total required investment for this railway project.

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  • Indonesian Government Tenders Soekarno-Hatta Airport Train Project

    Indonesian Government Tenders Soekarno-Hatta Airport Train Project

    The Indonesian Transportation Ministry will tender the Soekarno-Hatta International Airport train project in August 2014. The project, which will connect one of the world’s busiest airports to the capital city of Jakarta, is offered in the shape of a public-private partnership (PPP) with the Indonesian government. The total of investment required to develop the railway, which will be built partly underground, is estimated at IDR 26 trillion (USD $2.2 billion). The project aims to improve connectivity to the airport.

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  • Two Indonesian Airlines Plan Corporate Actions for Business Expansion

    Two Major Indonesian Airlines Plan Corporate Actions for Business Expansion

    Garuda Indonesia, the country's top-class airline, is planning to conduct a rights issue in the first quarter of 2014. Through this corporate action, which has already been approved by the shareholders, the state-controlled company aims to raise IDR 2 trillion (USD $162.6 million). For 2014, the airline plans to allocate IDR 4 trillion in capital expenditure (capex) for business expansion. About half of this amount should originate from funds generated through the rights issue.

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  • International Tender Surabaya Monorail and Tram Project in December 2013

    International Tender Surabaya Monorail and Tram Project in December 2013

    The regional government of Surabaya, Indonesia's second-largest city after the capital city of Jakarta, is planning to tender two separate infrastructure projects - open to both foreign and domestic investors - at the start of December 2013. The two projects involve the construction of the city's monorail, valued at IDR 6.42 trillion (USD $558.3 million), and the construction of a tramline, valued at IDR 2.41 trillion (USD $209.6 million). When finished, the two projects are expected to reduce traffic congestion in Surabaya, East Java's economic center.

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  • Government of Indonesia Serious to Develop Palm-Based Biodiesel

    Government of Indonesia Serious to Develop Palm-Based Biodiesel

    Usage of biodiesel for transportation in Indonesia is expected to reach 7.2 million kiloliter by 2015, a sharp increase from 600,000 kiloliter in the first nine months of 2013. State-owned Pertamina is expected to supply the extra 6.6 million kiloliter of biodiesel. The reason why the Indonesian government is eager to develop palm-based biofuel for transportation purposes is to reduce the country's reliance on the import of expensive diesel fuel. Imports of fuels and gas are the foremost reason that Indonesia is coping with a wide current account deficit.

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  • World Bank: Logistics Costs Reduce Economic Potential of Indonesia

    World Bank Report: Logistic Costs Reduce Economic Potential of Indonesia

    In its most recent report regarding Indonesia's economy, the World Bank states that high logistic costs form a serious impediment to the country's economic growth. The report, titled Annual Logistics Report, is compiled by Bandung Institute of Technology’s Research Center for Logistics and Supply Chains, the Indonesian Logistics Association (ALI), the STC Group, Panteia Research Institute, and the World Bank Indonesia Office. The report provides an analysis and overview of the progress made in tackling the problem of logistics in Indonesia.

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  • Analysis: Indonesia's Car Sales Rising but May Fall in Second Half 2013

    Analysis: Indonesia's Car Sales Rising but May Fall in Second Half 2013

    In recent years, Indonesia's car sales have shown robust growth, culminating in a record high number of 1.12 million sold car units in 2012. This is an important statistic because car sales inform us about the state of the economy. Generally, rising car sales indicate an expanding economy while declining car sales indicate that the economy is slowing down. When we take a look at the table below, there is a link visible between Indonesia's GDP growth and rising car sales, except for 2011 to 2012 when GDP growth declined while car sales rose.

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