Development of Freight Transport in Indonesia: Towards Sustainability Transport

Indonesia as the largest archipelagic country has potential market for freight transport. Unfortunately according to Logistics Performance Index (LPI) by the World Bank in 2012, Indonesia National Logistics System performance still have not optimal. Congestion become one of problem issue which caused the cost of logistics in Indonesia is more expensive for the similar routes in other Asia country. Besides, the use of road transport for freight is still dominating in Indonesia. In order to accelerate the Indonesia economy development and solve out the transport modal split issue, the government has declared the Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MP3EI). In which through this policy the government is trying to improve and develop all the infrastructure of the transport sector including multimodal transport and greenhouse gas emissions (GHG) reduction. This paper tries to give explanation toward logistics transport and its problem, current condition on freight transport and the government policies in Indonesia. The method is usingdescriptive analyse with qualitative data and interview method to gain the detail information from the stakeholder.