Indonesia with 17,504 islands and the highest GDP in Southeast Asia, promising huge potential for Logistics and Transportation.
Inter-moda playing a big part where combination airfreight, shipping and trucking required to distribution goods to all over islands and places in Indonesia.
As we know in 2016, Indonesia president, Joko Widodo, double down the infrastructure spending and building ports rapidly. Indonesian government allocated IDR 387.3 Trillion (~ USD $29.8 billion) for infrastructure development, up from IDR 317.1 trillion in the 2016 budget.
With many potential and bright future do to rapid development, Indonesia logistics market size in 2017 showing good progress and bad problem in the same time. Here are the breakdown for the detail:
Logistics cost accomodate for 25% from total GDP Indonesia. This numbers still very high and prove in-efficient in logistics and transportation distribution.
As we see in the ranking, India, China and Indonesia are the highest Logistics Market Size and Growth in Asia.
Trucks accomodate high percentage on goods distribution. There are 7 Million truck registered in Indonesia and estimated 10-30% are owned by 3PL services.
The trucking utilization very low and under utilized. As comparison, Europe truck utilization 200,000 km / year, Thailand is 150,000 km / year and Indonesia is 50,000 km / year.
With 1 M Km as total full-utilization, Europe takes 5 years, Thailand is 7-8 year and Indonesia is about 20 years. Infrastructure and truck regulation play huge part on truck utilization.
Services Trade Restrictiveness
Logistics services also one of restricted area where high regulation and limited overseas investment are allowed in the stake of company.
Shipping and Containers
Based on the government data, there are about 1,200 ship-owners and 2,266 freight-forwarder in Indonesia who playing part on containers distribution in Domestic, Export and Import.
Indonesia have Tanjung Priok as the most busiest port that handle 7.5 Million TEU which nearly 1/4 than Singapore Port.
Logistics Growth and Segmentation in Indonesia
Indonesia still have more potential with 11% CAGR and high freight movement. Inter-city shipping and transportation will be the key indicator on the growth of logistics market.
Logistics market size in Indonesia expected to be boom in 2020 where e-commerce also playing part in contribute USD $ 6,963 M in 2017.
This definitely will boost the growth and will double-down as the infrastructure ready developed by Indonesia Government.
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