Logistics sector Growth in Indonesia, Indonesia Road and Rail Freight Rates, Indonesia Trucking Industry, Indonesia Air and sea freight rates: Ken Research

Logistic Cost in Indonesia

The report includes Indonesia logistics, freight forwarding, warehousing, cold chain, third party logistics, express delivery market size in terms of value, segmentation on the basis of service mix (freight forwarding market, warehousing market and value added services) and by type of industries. The report also covers value chain analysis for logistics market, comparative analysis of Indonesia logistics market with other global logistics markets, trends and developments, issues and challenges, industry norms and regulations and recent developments in the market. The report also covers the competitive landscape of the industry and comprehensive profile of major players (PT. Yusen Logistics, Ceva Logistics, Agility Logistics, Trans Pratama Logistics, JNE, DHL, FedEx, Keppel Logistics, TNT Express, Maersk Line, PT. Wahana Cold Storage, PT. Mega International Sejahtera, PT. POS Indonesia) operating in the market. The report includes future outlook and projections of Indonesia logistics market, freight forwarding market, cold chain market, warehousing market, 3PL market and express delivery logistics market.

  • The logistics industry in Indonesia will spur major owing to investment in logistics infrastructure, improved information and communication systems, increasing human capital, enhancement in logistics service provider capability and government regulations and support.
  • Fall in logistics cost, demand in manufacturing, communication, construction, agriculture, mining, trade and other sectors in the economy will drive this growth in the logistics sector.

Indonesia’s logistics industry has grown at a robust growth rate during 2012-2017and the market persists in good opportunities, with the logistics sector to grow at a CAGR of 7.9% in the forecasted period. The demand for logistics in the country will spur majorly owing to growing e-commerce penetration in the country. Online retail sales in the country increased from USD 8 billion during 2014 to USD 25 billion during 2016 and it is anticipated to grow at a similar pace in coming years which will aid the 3PL, warehousing, express delivery and freight forwarding segments in the country. Technologies such as artificial intelligence, RFID, GPS tracking, and automation which are common in Western and other Asian markets are as yet not widespread in Indonesia. The shape of the logistics industry in the country will change with the implementation of new technologies in the upcoming years.

To accelerate improvement in logistics and transport, the government of Indonesia has introduced structural reforms in an attempt to boost trade and foreign investment in the country.  The ASEAN Economic Community (AEC) agreement will have several positive implications on the logistics sector, facilitating major sea hubs for the surrounding countries. The agreement will aid in the free flow of goods, free flow of services, and free flow of investment and skilled labor which will reduce the overall costs associated with the costs throughout the Indonesian supply chain. Additionally, Indonesia has launched a warehouse-sharing scheme aimed at improving competitiveness by reducing the cost of moving goods within the country which will further aid the overall market growth.

Rising Import and Export of Goods in Indonesia, growing air transport freight, increasing number of enterprises in the transportation industry, container port traffic, and infrastructure expenditure are some other key factors that may have a positive impact on the market, according to the Analyst at Ken Research.

Ken Research in its latest study, Indonesia Logistics and Warehousing Market by Sector (Freight Forwarding, Warehousing, VAS), by Domestic and International Services – Outlook to 2021, suggests that demand for logistics in the country will grow at a positive growth rate owing to the economic recovery of the country coupled with growing logistics parks in Indonesia.

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