Our Projects
Tenggara Strategics provides valuable perspectives on what matters most to our clients. Through our collaborations with clients, we grow our sectoral knowledge and skills as well as create positive changes and improvements by transforming our insights into concrete actions.
Shipping industry roadmap 2024-2029: Empowering the Indonesian shipping industry
Shipping industry roadmap 2024-2029: Empowering the Indonesian shipping industry
The shipping industry plays a vital role in the Indonesian economy, accounting for 25.5 percent of domestic logistics costs and contributing 3.6 percent to GDP. As a maritime nation with a strategic geographic location—where 40 percent of international trade passes through its territorial waters—Indonesia holds significant potential to become a major global transit hub. However, this potential remains largely unrealized, and the national shipping fleet continues to struggle to compete with foreign fleets. As a result, Indonesia's balance of services continues to be in deficit, mainly due to the deficit in transportation services.
On behalf of the Indonesian National Shipowners Association (INSA), Tenggara Strategics develops the Indonesia Shipping Industry Roadmap 2025–2029, with a focus on strengthening national shipping capabilities and increasing its role in global trade. This report explores the development, opportunities, and challenges facing the shipping sector. It highlights critical issues such as the implementation of the cabotage principle, overlapping maritime authorities, inadequate sea transport infrastructure, and the high costs of operations and financing. Based on these challenges, we propose a set of strategies for the next five years aimed at overcoming these obstacles and empowering Indonesia’s shipping industry.
Report - ID