TRANSPORT & LOGISTIC MARKET IN INDONESIA
- The Indonesian Logistics Association (ALI) is optimistic. It is hoped by the ALI that the logistics sector could post double digit growth rates in 2016 – in the region of 10-12%. The domestic market size is estimated at $163.4 billion.
- Indonesia joins ASEAN Economic Community (AEC). By joining the AEC, cross-border cargo should become an easier prospect in Indonesia – a very pleasant prospect for logistics suppliers. One major positive aspect of Indonesia’s AEC membership is a further reduction in logistics costs.
- As much as $450 billion is being poured into essential infrastructure upgrades until at least 2020. Connectivity and the nation’s economy go hand in hand. As much as 17% of an Indonesian company’s total expenditures are absorbed by logistics. Transportation costs account for 24% of Indonesia’s $861 billion economy, hence the government’s colossal infrastructure spending programme.
- The Asia Times report 2017 is set to be a blisteringly active year for Indonesian infrastructure construction. A wide range of projects are slated to begin or be completed this year including 55 seaports and 13 airports. Jakarta is planning on allocating an extra $30 billion to its country-wide projects across the next 12 months. Highway and toll road construction is essential for transport and logistics in Indonesia.
- According to the report by Ken Research, a noteworthy CAGR of 7.9% in revenue in Indonesia Logistics Market is expected in next 5 years till 2021 and warehouse space requirement is estimated to be increased by over 240,000 sqm in the year 2021.
- Freight Forwarding is expected to be the fastest growing segment in future with an expected CAGR of 9.2% from 2016-2021.
- The express delivery logistics has witnessed a tremendous growth in Indonesia and global E-commerce logistics costs are expected to have a 17% CAGR through 2020.