“It is not an exaggeration to say that the transportation sector, particularly shipping, serves as one of the main arteries of Indonesia’s economic pulse,” Kadin’s Deputy Chairperson for Infrastructure and Regional Development Carmelita Hartoto stated here on Sunday.
She said the national shipping industry continues to demonstrate its strategic role in strengthening inter-island connectivity, absorbing a significant workforce, and maintaining the smooth flow of logistics across the country.
This multi-layered contribution has created a multiplier effect on national economic growth, she added.
Indonesia’s economy expanded by 5.04 percent in the third quarter of 2025, supported by the transportation sector, which contributed 6.10 percent to the national GDP, according to data from Statistics Indonesia (BPS).
During the same period, the sector grew by 8.62 percent, with shipping recording the highest growth rate at 10.19 percent.
Hartoto further noted that as of August 2025, the transportation sector employed around 6.3 million people, or 4.28 percent of the national workforce, underscoring its role in improving public welfare.
Meanwhile, she pointed out that infrastructure development remains a critical factor, as it has been proven to generate ripple effects on both regional and national economies.
“One example is the Trans-Sumatra toll road project, which has proven to contribute to increasing regional economic activity, job creation, and the performance of surrounding medium and small industries,” she explained.
Given the limited state budget, she encouraged the adoption of Public-Private Partnerships (PPP) to advance infrastructure development through collaborative, investment-based financing models despite remaining bureaucratic challenges.
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Translator: Harianto, Kenzu
Editor: M Razi Rahman
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