Maritime industry in Indonesia - statistics & facts
Indonesia, the world's largest archipelago with over 17,000 islands, stretches over 5,000 kilometers from east to west. To connect this vast territory, the maritime sector is an essential element in the movement of goods and passengers. Moreover, with its strategic position in Southeast Asia, the country serves as a hub for maritime trade and attracts foreign investors with its vast coastline encompassed by the Indian and Pacific Oceans. In fact, two of the world's most important maritime trade routes pass through its waters. Such geographical advantages give Indonesia unique maritime economic potential. It enabled the country to achieve international maritime cargo traffic of around 506 million metric tons in 2022 and to rank among the leading Southeast Asian countries in terms of cargo throughput. Despite this strong flow, the country is facing challenges regarding connectivity and trade costs, as shown by the liner shipping connectivity index, which did not exceed 38.26 as of the fourth quarter of 2023.
The fleet expansion reflects the government's commitment to transforming Indonesia into a global maritime hub. Priority is being given to east-west connectivity, maritime infrastructure, and national defense, with the aim of maximizing the benefits of sea-based economic activities such as shipbuilding and fishing. By tackling the high shipping costs, the authorities are focusing on improving the country's competitiveness within the ASEAN Economic Community. Major port developments, potential public-private partnerships, and technology transfers offer opportunities for further growth, in line with the goal of positioning the country as a global maritime axis.
Finally, the emphasis is also on digitization to stimulate expansion in the sector. PT Pelindo, the state-owned port operating company, is implementing systems such as Phinnisi and Inaportnet, to accelerate ship services and operational activities. Energy transition is another emerging segment, alongside green port initiatives for environmental sustainability. Despite the relatively weak competitiveness of the national maritime sector, the construction of strategic ports aims to improve Indonesia's maritime performance, in line with Indonesia's ambitious Vision 2045.
Indonesia's key maritime hubs and fleet
Indonesia's maritime landscape includes key port cities: Jakarta to the west, Surabaya to the east, and Medan to the north. Jakarta is home to Tanjung Priok, the country's largest container port, which accounts for a significant part of the domestic cargo traffic. To the east, Surabaya plays a key role in international trade with the port of Tanjung Perak. Medan, with the Sumatran port of Belawan, plays a key role in handling goods in the northern region. The country plans to develop this port into the main gateway to the Strait of Malacca, a strategic position for international maritime traffic. With 2,335 nationally flagged and 112 internationally flagged vessels in 2023, Indonesia's maritime fleet, with its considerable deadweight tonnage, ranks among the leaders in the Asia-Pacific region.The fleet expansion reflects the government's commitment to transforming Indonesia into a global maritime hub. Priority is being given to east-west connectivity, maritime infrastructure, and national defense, with the aim of maximizing the benefits of sea-based economic activities such as shipbuilding and fishing. By tackling the high shipping costs, the authorities are focusing on improving the country's competitiveness within the ASEAN Economic Community. Major port developments, potential public-private partnerships, and technology transfers offer opportunities for further growth, in line with the goal of positioning the country as a global maritime axis.
Challenges and opportunities in Indonesia's maritime sector
Despite its clear strengths, Indonesia's maritime sector faces several challenges. The country's vast geographical expanse contributes to longer shipping times and higher logistic costs. Some ports face operational constraints due to obsolete infrastructure, limited resources, and a shortage of qualified operators. In response, Indonesia's Grand Vision includes maritime toll programs to improve connectivity, aimed at increasing the capacity of 24 seaports. A key aspect is the implementation of sea tolls, focused on improving shipping in the east through new ports and modernization. Since 2022, 33 sea toll routes have been established, and this figure is expected to rise in the coming years, significantly reducing price disparities for essential goods in remote regions.Finally, the emphasis is also on digitization to stimulate expansion in the sector. PT Pelindo, the state-owned port operating company, is implementing systems such as Phinnisi and Inaportnet, to accelerate ship services and operational activities. Energy transition is another emerging segment, alongside green port initiatives for environmental sustainability. Despite the relatively weak competitiveness of the national maritime sector, the construction of strategic ports aims to improve Indonesia's maritime performance, in line with Indonesia's ambitious Vision 2045.
