INDONESIA: Air cargo grows, but lack of infrastructure

The condition of Indonesia’s air cargo industry after the 1997 economic crisis has indicated improvement, with the growth rate between 13 percent-16 percent both of domestic and international freight. Former Transport Minister Hatta Radjasa said the trend is promising, even more so since the growth of Indonesia’s logistics market is above the growth rate of […]


The condition of Indonesia’s air cargo industry after the 1997 economic crisis has indicated improvement, with the growth rate between 13 percent-16 percent both of domestic and international freight.

Former Transport Minister Hatta Radjasa said the trend is promising, even more so since the growth of Indonesia’s logistics market is above the growth rate of other Asia Pacific nations.

“However, such growth is not balanced with adequate infrastructure and skilled human resources. This is our perennial problem that needs an immediate solution,” Radjasa said. In 1996, the total volume of airfreight was 137,000 tonnes. However, when the economic and financial crisis occurred in 1997, the growth was negative (-26 percent) to only 100,000 tonnes.

The market gained strength in 2003. Data released by the Department of Transportation shows that Indonesia’s international cargo volume grew to more than 300,000 tonnes last year, compared to 240,000 tonnes in previous year. But domestic cargo slightly decreased to 311,770 tonnes in 2006 from 322,710 tonnes in 2005. To support this growth, Radjasa said, the government should give more room to the local government and the private sector to take necessary measures to improve this industry.

“We invite private companies to build infrastructure for a smooth flow of cargo to and from various cities nationwide. This will prevent state-run companies from monopolising the sector,” Radjasa said. – Siktus Harson