The country took a dual approach, focussing on physical infrastructure and
customs reforms working in tandem to improve logistics performance. In terms of
physical infrastructure, the Indonesian government and its development partners have
put together a plan for a major expansion of the port that is expected to double its
capacity by 2017. To ensure the maximum payoff from this infrastructure investment,
it will be necessary to ensure that port investments are coordinated with investments in
connecting roads so that goods can make it to and from the gateway efficiently.
Together, these steps will not only ensure coordination of infrastructure investments
(Challenge 7), but also increase internal connectivity (Challenge 8). Given that Indonesia
is made up of a very large number of islands that require maritime connections, it is
important for improving internal connectivity