Indonesia's Garuda Indonesia plans to separate its cargo division in 2014 in an effort to boost cargo revenues by more than 20 per cent.

A statement said there is opportunity "because domestic logistics demand continues to increase every year inIndonesia and the spin-off would help Garuda to concentrate on other businesses."

As well as the expansion of its cargo terminal at the country's main gateway, Soekarno-Hatta International Airport, and opening of more service centres in big cities across the country, there are up to 40 more service centres to be opened this year, including in Yogyakarta, Semarang, Medan, Surabaya, Kupang, Jayapura and Biak.

Indonesia's logistics sector has been projected to grow by 14.5 per cent this year, with air freight expected to dominate.