Drewry has reported that Indonesia's strengthening economy and transport investment is increasing container shipping activity in the country.
In its Container Insight Weekly, the consultancy identified that Indonesia’s recent growth has been due to new intercontinental connections and its fast-growing economy, which has been “under-served” in previous liner networks due to its size.
These developments also prove that Indonesia’s President Joko Widodo is keeping his 2014 general election pledge to transform the country into a “global maritime axis”.
But despite being the largest economy in Southeast Asia, the World Bank ranked Indonesia below the region’s average for trade and transport related infrastructure such as ports, railroads, roads and IT in 2016.
It was also found to be below average for liner connectivity, as measured by UNCTAD.
But such statistics are becoming outdated as companies such as the French carrier CMA CGM are connecting through the country.
CMA CGM's first direct container service to Europe in over a decade included Tanjung Priok, Jakarta, on a new loop called South East Asia North Europe Service (SEANE).
Jakarta was also added to the Columbus Loop when CMA CGM initiated a new Transpacific connection as part of the Ocean Alliance forming in April.
Drewry stated: “With the world’s fifth largest population and as one of the fastest growing economies in the world – over the next five years the IMF predicts that Indonesia will be the third behind China and India in growing its share of world GDP – there is clearly a lot of untapped potential for more direct container services.
“Rising wealth in emerging markets will eventually dictate that those economies get better transportation links to match their new-found status, so long as it is accompanied by sufficient investment in total supply-chain infrastructure.”
Drewry recently reported that idle container ship fleets have declined by 70% from 1.7 million TEU in November 2016 to under 500,000 TEU as of June 2017.