Governance of Transport Corridors in OIC Member States:
Challenges, Cases and Policy Lessons
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Indonesia is an important business partner for China. The bilateral trade between China and Indonesia
was US$44 billion and consisted mainly in coal and other natural resources. Indonesia forms part of
the Maritime Silk road under OBOR through its connection Natuna, Pontianak and Tanjung Priok.
Although the relationship between China and Indonesia has always been challenging in the past, the
Government of Indonesia cannot ignore the funds available by the Chinese funded Asian Infrastructure
Investment Bank (AIIB) with an authorized capital of US$ 100 billion and the Silk Road Fund with a
potential capital of US$ 40 billion.
The focus in this case study is on the legal and institutional aspects of ASEAN, which are very important
in providing the regulatory framework for optimal operations of the transport corridors, which include
maritime corridors amongst its Member States. This framework has a strong legal base, although the
challenge is to transpose the comprehensive ASEAN Charter into national legislation and to implement
this agreement in practice. Full implementation of the Charter, which will be described later on would
facilitate the operations of the corridors in ASEAN
7.2.2 Objectives of transport corridors and main drivers
The objectives of the ASEAN Connectivity Strategy 2025 are presented i
Figure 7.6 Objectives of ASEAN connectivity strategy
Source: ASEAN.