The term logistics is commonly the detailed organization and the acceptance of a critical function. It denotes the movement of the goods and information among the provider and receiver. In addition, logistics is the administration of the flow of things among the point of beginning and the point of consumption in order to encounter the requirements of the consumers or corporates. The resources managed in logistics can comprise physical items likewise food, materials, equipment, animal, and liquids as well as abstract items, likewise time, and information.
In addition, the Logistics Industry in Indonesia is accounted by the Freight forwarding Market owing to trade with several Asian and European countries owing to its Archipelago Location. Growth in the industry has been encouraged due to the betterment inconvenient of doing business and ranked 73rd position across the World owing to huge infrastructural Support delivered by the Indonesian Government. Moreover, Indonesia also has a robust warehousing market sector with massive space catered by warehousing players and renting out at quite great rates. Warehouses are concentrated in locations of Greater Jakarta, Surabaya and Makassar owing to the great population and existence of Seaports. The Courier, Express and Parcel market is propelled by growth in Last-Mile deliveries and the E-Commerce sector across the country.
Rising Development Of The E-Commerce Retail
The growing internet-based retailing is enhancing the growth of the logistics market. Although, exponentially bourgeoning online shopping worldwide the market is working as the foremost influencer of the logistic market. In addition, the hassle-free shopping, and home delivery choices are supporting the market presently. Further, short time consignment delivery, after the sales support and services are propelling the internet retail market. Knowing the statement, the online retailer should deliver good logistics services to practice and maintain good and pleasing relationships with the businesses. The growth in the internet the retail market is thus propelling the logistics market at recent and similar the trend is anticipated to be observed over the forecast duration.
Challenges for Logistics Market in Indonesia
Insufficient Infrastructure: Inadequate roads, railroads and ports across the country are the foremost challenges for the logistics industry as the delivery of goods devours a high volume of time. Commercial trains function in Java and Sumatra only. Untrustworthiness of domestic shipping owing to a poor concert of ports, serious backhaul problems with ships, complex supply chains, and interruption of delivery is a foremost encounter for Inter-island Connectivity.
Custom Clearance Duration: Customs measures in Indonesia have prolonged administrative measures. Geologically, the archipelagic nature of the nation poses noticeable challenges. Trans-shipment presently takes three days associated with just two hours in other more advanced nations in the region.
Limited Progress in E-Payment Gateways: The sophistication level in the country’s e-payment gateways has been well beneath as compared to more industrialized international retail markets over the era. Cash on delivery has been the most chosen mode of payment for online shipments across Indonesia over the past few years.
Shortage of Skilled labor: There is a Deficiency of Skilled and qualified labor across Indonesia. The over-reliance on short term contracts across Indonesia has disheartened skills investment. The Indonesian government had a board of 10,000 logistics workers to be certified during 2015 to ASEAN standards but only 3,000 were specialized. The industry players often rental logistics personnel from abroad from the foreign regions namely Bangladesh.
The competition in the Logistics space across Indonesia can be separated on the basis of different service segments comprising Freight Forwarding, Contract Logistics (Warehousing), and Express Delivery.
Although, the Domestic and International players such as Seino Indomobile, CKB logistics, Lookman Djaja, Linfox Logistics, Kuehne + Nagel, DB Schenker, DHL, Agility were acknowledged to be dominant when it comes to freight forwarding and warehousing, as they have a robust brand name in the worldwide and local market for their quality services. Local Domestic Transporters register the Road freight Market on the basis of the form of fleets, number of trucks, Prices, delivery periods, and many more.
While the International Express market across Indonesia is concentrated amongst the local players such as Indonesian Post, JNE express Lazada Express, and more, the International Express market is registered by DHL, FedEx, UPS, and more across the Indonesia logistics Market.
The logistics segment in Indonesia is projected to grow during the future with a dip in 2020 owing to a lockdown for a few months that disrupted the Imports and Export Movements by all Modes which is projected to revive back during 2021. Tech startups are satisfying the gap and capturing fresh business opportunities. Numerous key technologies positioned by logistics startups comprise the radio frequency identification (RFID), GPS, cloud computing, and data analytics. Fresh concepts such as micro-warehousing as done by Trustworthy and cross-border e-commerce gratification AllSome are obtaining popularity across the Indonesian market.
Key Target Audience: -
3PL Logistics Companies
Integrated Logistics Companies
Logistics/Supply Chain Industry Associations
Time Period Captured in the Report:
Historical: 2015 to 2019
Future: 2019 to 2025
Iron bird transport
Bhanda Ghara Reska
Pancaran Darat Transport
Global Jet Express
MGM bosco logistics
Kiat ananda cold storage
Wahana Cold storage
Central Cold storage
Key Topics Covered in the Report: -
Indonesia logistics Market size by Revenues
Indonesia logistics Market Segmentation By type of Service (Freight Forwarding, warehousing, Courier, Express and parcel Market and Value added services) By Revenues
Market Segmentation by Modes of Freight (Including Domestic and International Cargo travelled for each Mode of freight, FTK travelled)
Market size of Warehousing (Revenue, Total warehousing Space Average Occupancy, Revenues, Average Price per sqm per Month)
Warehousing Revenue by Type of Warehouses (Industrial/ Retail, Agricultural, Cold Storages, ICD/CFS)
Courier, Express and Parcel Market (Domestic/ International Revenues, Average Price per Domestic and International Shipments, Total Domestic/ International Shipments)
E commerce logistics Market size in Indonesia
Top Companies dealing in each Service and Sub Service (Land freight, Sea freight, Air freight By Volume, warehousing companies by warehousing Space, Express companies by International/ Domestic Revenues)
Top Companies by revenues dealing in each Vertical ( E-commerce, Retail , Automotive and Pharma logistics)
Competition Analysis of Major Logistics Players in Indonesia by Revenues
Competition Analysis of Major Logistics Players in Indonesia ( including Volume, Average warehousing Space, Fleets, Average Occupancy rate, Network, Client Retention, Industries catered, Services offered, Technology, Certifications, Strength)
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Ankur Gupta, Head Marketing & Communications