Keynote Speech

KEYNOTE SPEECH

MINISTER OF TRANSPORTATION IN CONFERENCE OF THE 16TH INTERNATIONAL CONFERENCE OF EASTERN ASIA SOCIETY FOR TRANSPORTATION STUDIES (EASTS)

SURAKARTA, SEPTEMBER 1, 2025

Assalamualaikum Warahmatullahi Wabarakatuh, Good Afternoon, Peace be upon us all, Shaloom, Om Swastiastu, Namo Buddhaya, Greetings of Virtue,

Respected:

1. Mayor of Surakarta, Mr. Respati Achmad Ardianto;

2. President of Eastern Asia Society for Transportation Studies (EASTS), Mr. Prof. Akimasa Fujiwara;

3. Chairman of the Indonesian Transportation Society (MTI), Mr. Tory Damantoro, ST., M.Sc., MPPM ;

4. Rector of Sebelas Maret University (UNS), Prof. Dr. dr Hartono, M.Sc;

5. Delegates from 19 EASTS member countries;

6. Academics, researchers, practitioners, observers, and leaders of transportation institutions from throughout East Asia and various friendly countries; and

7. Distinguished invited guests.

First of all, let us express our gratitude to Almighty God, because by His abundant grace, we can all gather in the city of Surakarta, steeped in history and culture, to attend the 16th Eastern Asia Society for Transportation Studies Conference—EASTS 2025. It is a great honor for the Indonesian nation to be entrusted with hosting this prestigious international forum today, amidst the dynamics of the new era of global transportation that demands collaboration, innovation, and a shared commitment towards an inclusive, sustainable, and resilient mobility system.

I express my highest appreciation to the entire EASTS board of directors, the chairperson and staff of the Indonesian Transportation Society as the organizing committee, Sebelas Maret University, and the Surakarta City Government for their dedication and hard work, which have made this conference a success. I also extend my gratitude to all the delegates who came from various parts of East Asia and the world, both to contribute to academic forums, present cutting-edge research results, and build much-needed strategic collaborative networks.

Indonesia, an archipelagic nation of over 17,000 islands, is blessed with natural wealth and cultural diversity, but its geographical conditions also present unique challenges. This demands an approach tailored to its national connectivity. In this context, transportation infrastructure is more than just a sector; it is the backbone of unity, economic equality, and sustainable development.
In line with today’s theme, “One Nation, Connected: Integration of Land, Sea, and Air Infrastructure,” it is important to understand that holistic connectivity goes beyond simply connecting roads, ports, and airports. Holistic connectivity means building a comprehensive transportation ecosystem that drives economic growth, promotes equitable development, and improves the welfare of our people.

Distinguished guests,
The development of transportation infrastructure in Indonesia is one of the top priorities in the Asta Cita mission of President Prabowo’s administration. Direct support for the transportation sector can be provided across all Asta Cita programs in the form of transportation sector policies and programs to encourage equitable development of transportation facilities, infrastructure, and services throughout Indonesia.

Over the past ten years, the Ministry of Transportation has built, rehabilitated, and revitalized physical transportation infrastructure throughout the archipelago, not only in Java but also in underdeveloped, outermost, remote, and border areas on other islands. These efforts aim to ensure that every part of the Republic is connected both physically and economically.

In line with the main pillar of our vision, “One Nation, Connected,” we have also made significant strides in digital transformation to advance our transportation services. The launch of an e-ticketing system, real-time fleet monitoring, and an integrated cross-sectoral data platform have improved transparency, efficiency, and coordination among all relevant stakeholders.

Ladies and Gentlemen,

It is necessary to examine global issues that directly and indirectly affect the economy and geopolitics in Indonesia.

• World Population Prospects (2022) states that the world population currently exceeds 7.0 billion and is projected to continue increasing with marginal growth to 9.7 billion by 2050.
• According to UNCTAD (2023) International Trade (UN, addressing trade, investment, and development issues), maritime trade volume fell by 0.4% in 2022 and returned to a recovery path with growth of +2.4% in 2023. Growth is projected to remain above 2% until 2028.
• According to the IPCC (2023) Global Climate Change, the Intergovernmental Panel on Climate Change (established by the UN) stated that the average global summer temperature during the 2017-2021 period was approximately 0.7°C higher than the global temperature increase from 1986 to 2005. Indonesia is projected to have the highest number of hot days in Southeast Asia.

Numerous issues and problems exist in the land, sea, air, and rail transportation sectors. The most prominent current issues relate to the regulation of online transportation, both two-wheeled and four-wheeled, as well as law enforcement and regulation of vehicles that are over-dimensioned and overloaded (ODOL), as well as other issues in each sector.

Dear Participants,
Transportation safety is currently a challenge and requires appropriate policies to address it. Some of the current challenges related to transportation safety are:

• The year-on-year reduction in fatality rates is around
  80-90% of the RUNK (National General Plan for Safety) target. Accidents are mostly caused by humans (61%), facilities (9%), infrastructure, and the environment (30%).
• ODOL vehicles contribute to 17% of accidents in Indonesia (more than double the composition of road sections). The level of road damage caused by ODOL shortens the planned road lifespan to 3 years (from the original 10 years), resulting in state losses of around Rp 43 trillion per year in road maintenance.
• Regarding railway safety issues: Of the 4,194 railway level crossings, only about 1,648 are maintained (39.29%). Only 39 (20.86%) of the 187 national road crossings have been constructed with flyovers/underpasses (Directorate General of Highways, 2023).

Focusing on the issue of Over-Dimension Overload (ODOL) vehicles, the following:

• The percentage of ODOL trucks at the Merak-Bakauheni Port is 95% of the 103 vehicles. (BKT, May 2025);
• ODOL is a contributing factor to accidents.
• The average number of accidents involving ODOL vehicles has reached 50 in the last five years (2019-2030);
• Freight vehicles on the main routes of Java (40-50% of vehicles) and Sumatra (30-40%) are classified as Over-Dimension Overloaded vehicles, which impacts road quality, resulting in losses of Rp 43.45 trillion per year.
• The integrated road improvement and maintenance scheme with weighbridges through the PPP Scheme on the Trans-Sumatra Highway is still hampered by weighbridge operation.
• ODOL conditions can result in losses of up to 81% for other road users, including passenger car drivers. (Source: DJBM Survey Data, 2023).

Data on traffic accidents involving trucks from January 2024 to April 2025 shows an increase in the number of accidents during the 2024 Eid al-Fitr holiday period, with an increase in accidents during the 2025 Eid al-Fitr holiday period.

Accidents involving freight vehicles can result in loss of life and damage. For example, a vehicle accident occurred at the Ciawi 2 Toll Gate on June 2, 2025, causing damage to several toll facilities (automatic toll gate portals, crash cushions, and bullnose foundations). The accident, involving a wing box truck, a minibus, and a light truck, was allegedly caused by brake failure.

Several regulations governing Over-Dimension Overloading (ODOL) have been issued, which are expected to control ODOL. Legally, the regulations are sufficiently robust to control ODOL.
The ODOL control phases were developed from June 2025 to August 2025, at which point enforcement action must be taken.

Strengthening freight transportation supervision is being carried out in collaboration with relevant agencies, including the Police and the Ministry of Home Affairs, each with its own mutually supportive roles and functions.

In an effort to reduce congestion and road congestion on the island of Bali, the Ministry of Transportation has initiated a Water Taxi service with a sea transportation route from I Gusti Ngurah Rai International Airport via Sekeh Beach to Canggu Beach. The jakung boat service is more efficient, with a travel time of approximately 35 minutes. A fast boat/speedboat will be even faster, reducing the journey time to approximately 15 minutes, significantly saving time compared to land transportation, which can take approximately 1-1.5 hours.

To address national connectivity issues and support national tourism, the Ministry of Transportation is working to introduce Seaplane services to improve inter-island tourism connectivity.

For example, Seaplane services are available at the Maldives Water Airport. Tourism is the largest industry in the Maldives, contributing 28% of GDP and over 60% of foreign exchange earnings. Tourism drives GDP per capita, increasing by 265% in the 1980s and another 115% in the 1990s.

The progress of seaplane services is reported to have been announced. On August 11, 2025, the Minister of Transportation launched an amphibious aircraft and signed the groundbreaking inscription for the Water Aerodrome at the Center Point of Indonesia (CPI) in Makassar. The Minister of Transportation assessed that the presence of the amphibious aircraft (seaplane) would be a strategic step in opening and improving connectivity and accessibility between regions.

Respected Ladies and Gentlemen,

The Ministry of Transportation has long been present to serve the public’s transportation needs through subsidy policies in the transportation sector. These include:

–Pioneer Subsidies, implemented in the 3TP (Underdeveloped, Frontier, Outermost, and Border) regions and implemented by land, sea, air, and rail transportation.

–BTS (Buy the Service) is implemented only by land transportation for urban mass transit services, including in Solo, Yogyakarta, Bandung, Palembang, Surabaya, Medan, Makassar, Denpasar, Bogor, Depok, and Bekasi. The goal is to shift the use of private vehicles to public transportation.

-PSO (Public Service Obligation), carried out by sea and rail transportation.

The transportation subsidy budget in the 2025 budget allocation is quite large, reaching 3.18 trillion Rupiah. This budget is allocated for subsidies for land, sea, air, and rail transportation, including passenger transportation, freight transportation, ferry transportation, ship transportation, livestock transportation, and others.

The 2025-2029 National Medium-Term Development Plan (RPJMN) targets outline eight missions of Prabowo-Gibran, known as Asta Cita, which are National Priorities (PN). The Ministry of Transportation supports and contributes to these eight Asta Cita and is one of the sponsors of PN 3, which includes continuing infrastructure development and increasing quality employment, encouraging entrepreneurship, developing creative industries, and developing the agro-maritime industry in production centers through the active role of cooperatives. PN 5 focuses on continuing downstream processing and developing natural resource-based industries to increase domestic added value. PN 5 includes an indicator that measures the percentage of logistics costs to GDP.

Transportation Development Strategy in 2025-2029 with Key Issues in the Transportation Sector Priorities

1. High National Logistics Costs: The logistics burden reaches more than 14% of GDP, far above global standards.
2. Urban Traffic Congestion: Especially in large cities, it impacts productivity and quality of life.
3. Low Transportation Safety: Issues such as Over Dimension Over Load (ODOL), level crossings, and shipping and aviation accidents remain a concern.
4. Online Transportation: Challenges of integration, regulation, and safety in app-based transportation modes.

Challenges Faced:

1. Budget Efficiency: The significant need for infrastructure development must be balanced with effective state spending.
2. Priorities of the 2025–2029 National Medium-Term Development Plan (RPJMN): Focus on strengthening food production centers, natural resource downstreaming, and other strategic areas.

Hub & Spoke Grand Strategy: Optimizing capital share through the development of a hub & spoke network.
This means that transportation will be organized like a system of airports or major ports (hubs) serving surrounding areas (spokes) to be more efficient and integrated. This requires strengthening national and global inter-island connectivity, improving multimodal connectivity efficiency between hubs and hinterlands, and developing sustainable urban mass transportation. The transportation policy directions to support this strategy are:

• Optimizing the utilization of existing assets to improve services.
• Ensuring the availability of basic services and transportation safety.
• Developing National Priority Infrastructure with the Involvement of Business Entities.

National Medium-Term Development Plan (RPJMN) of the 2025–2029 : Focus on strengthening food production centers, natural resource downstreaming, and other strategic areas. Hub & Spoke Grand Strategy: Optimizing capital share through the development of a hub & spoke network. This means that transportation will be organized like a system of airports or major ports (hubs) serving surrounding areas (spokes) to be more efficient and integrated. This requires strengthening national and global inter-island connectivity, efficient multimodal connectivity between hubs and hinterlands, and the development of sustainable urban mass transportation. The transportation policy directions to support this strategy are:

Indonesia can become an economic powerhouse through integration between the domestic and global economies, particularly by reducing logistics costs and strengthening participation in global supply chains.
The 2025-2029 National Medium-Term Development Plan (RPJMN) outlines the Economic Transformation Strategy (IE 7), which outlines seven strategies:

1. Integrate intra- and inter-regional connectivity by uniting Indonesia to ensure smooth logistics from Sabang to Merauke.
2. Create new growth centers and strengthen existing ones. Development should not be solely Java-centric, but should be evenly distributed across various regions.
3. Strengthen national logistics, including: Logistics digitalization, competent logistics human resources, an efficient logistics ecosystem, and competent institutions and logistics.

4. Strengthen connectivity infrastructure (land, sea, and air) by building and upgrading ports, airports, and roads to support the flow of goods.
5. Improve connectivity between growth centers and connect strategic cities to ensure smooth distribution of goods.
6. Encourage exports of high-value-added goods and services, focusing on quality, not just quantity.
7. Strengthen Indonesia’s participation in the global supply chain.

The major challenge is the current high logistics costs, at 14.29% of GDP (source: Bappenas), targeted to be reduced to 8% of GDP by 2045. The main challenges are:

▪ Low economies of scale (small vessels and low payloads), resulting in high freight costs and limited economic zones;

▪ Domestic container hub port infrastructure and services are not yet capable of accommodating large vessels, and optimal route consolidation (loop) has not yet been established;

▪ Load imbalances due to uneven port facilities and the standardization of supporting facilities;
▪ Logistics Performance Index (LPI) scores that are declining and lower than those of ASEAN countries.

The Ministry of Transportation supports strengthening national food security by maintaining smooth distribution through optimizing connectivity infrastructure, the sea toll program, air bridges, livestock transportation, and pioneering services.
The challenge relates to smooth distribution, requiring policies and actions to ensure smooth distribution, with the following strategies:

1. Utilizing/building/improving connectivity infrastructure (ports, airports, terminals).
2. Implementing the Sea Toll, Air Bridge (Cargo Air Transportation), Livestock Transportation, and Pioneering Services programs.

During the 2025-2029 RPJMN period, the Ministry of Transportation supports this by prioritizing the following activities:

1. National Priority Assignments: Priority activities refer to Attachment III of Presidential Decree 12/2025 concerning the 2025-2029 RPJMN, which consists of 399 detailed outputs (Connectivity and Vocational Programs).
2. Food Security in Food Production Center Areas (KSPP): Indicated support for KSPP, which consists of:
   18 ports, 13 airports, 16 pioneering sea routes, and plans to develop new transportation hubs
   at food security strengthening locations (Wanam Seaport, Sungai Salek Port, Sota Freight Terminal),
   Freight transportation subsidies, road equipment, and bus procurement in the KSPP area, as well as a feasibility study for the development of a service network to support food barns in three locations, as well as various integration studies and support for goods transfer facilities at KSPP locations in five locations.
3. Energy Resilience/Downstreaming: Indicated support for Industrial Estates (KI), Special Economic Zones (KEK), Free Trade Zones and Free Ports (KPBPB), which consists of: Optimizing existing infrastructure (28 ports, 5 airports, 14 pioneer ship routes, 3 sea toll routes, and 9 subsidized freight transport service routes), including simplifying licensing.

The impacts of transportation sector development in 2025-2029 are:

1. Increased employment in the transportation sector from 5.2 million (in 2024) with a target growth of 4.86% (6.8 million) in 2029;
2. Increased transportation infrastructure stock from 5.3% (in 2024) with a target growth of 6.62% in 2029;
3. Reduction in logistics transportation costs from 8.27% (in 2024) with a target reduction in logistics transportation costs to 7.56% of GDP in 2029.
4. Increased economic contribution of the transportation sector from 4.72% (in 2024) with a target growth of 5.57% in 2029.

The following map shows the distribution of the Ministry of Transportation’s support for Food Security in Food Production Center Areas (KSPP), spread across six regions: North Sumatra, South Sumatra, Central Kalimantan, East Nusa Tenggara, Papua, and South Papua. This support includes subsidies for freight transportation, road infrastructure, airport development, pioneer transportation, road infrastructure, bus/truck procurement, and other support.

Strengthening national logistics requires collaboration and synergy among stakeholders. Stakeholder involvement, or Pentahelix collaboration (Government, Academics, Business, Community, and Media) is essential for developing the transportation sector. Therefore, synergy and collaboration with all parties are required, from the planning and development stages to operationalization. Several areas of collaboration include:

1. Supporting the implementation of transportation infrastructure development and construction programs to be implemented in the regions, through facilitating permits, compliance with the Regional Spatial Plan (RTRW), land acquisition support, provision of access roads, integrated development, etc.; including socialization of the use of digitalization to support logistics services.
2. Contribute to maintaining and ensuring the sustainability of transportation services by assisting the Ministry of Transportation in maintaining regional safety, comfort, and conduciveness, including allocating budgets for transportation service subsidies, as well as efforts to increase regional superior commodities to support return cargo balance.
3. Improve coordination, synergy, and collaboration with the Ministry of Transportation in the development and operation of transportation facilities and infrastructure through business entities or other mechanisms as required.
   Some examples of collaboration between the Central Government and Regional Governments include:

• The Saumlaki Regency Government of North Maluku Province is optimizing the Sea Toll Road for the delivery of copra and seaweed.
• The Maluku Provincial Government is providing transportation and distribution subsidies for the Food Supply and Price Stabilization Program (SPHP) to address price disparities for staple foods in Eastern Indonesia.
• The East Belitung Regional Government is collaborating with the central government and private investors to develop an integrated industrial area around Manggar Port.
• The Bangka Belitung Provincial Government is supporting the optimization of the distribution of basic necessities from the port to surrounding areas.

The Public-Private Partnership (PPP) initiative has played a crucial role in this journey, serving not only as a mechanism to accelerate development but also as a catalyst for technological innovation and sustainable long-term investment. There are 16 transportation infrastructure development projects to be built under the PPP scheme: 4 land transportation projects, 4 sea transportation projects, 4 air transportation projects (such as airport construction), and 4 railway transportation projects.

Finally, on behalf of the Government of the Republic of Indonesia, I, representing the Minister of Transportation, invite the entire EASTS community and attendees to use this conference as a space for inspiration, collaboration, and reflection on the future journey, challenges, and opportunities in the world of transportation. Rest assured, every innovative step, every collaborative idea, and every progressive policy we formulate today will be a valuable legacy for future generations and will strengthen East Asian civilization as a model for change for the world.
I extend my gratitude to the President of EASTS, the Chair of the Indonesian Transportation Society and its staff as the organizing committee, Sebelas Maret University, and the Surakarta City Government. Happy discussions, happy work, and enjoy the hospitality of Surakarta.

Peace be upon you,
MINISTER OF TRANSPORTATION OF THE REPUBLIC OF INDONESIA
DUDY PURWAGANDHI