INDONESIA FREIGHT AND LOGISTICS MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2021-2026)

The Indonesia Freight and Logistics Market is segmented by Function (Freight Transport, Freight Forwarding, Warehousing, and Value-added Services and Other Services) and End User (Manufacturing and Automotive, Oil and Gas, Mining, and Quarrying, Agriculture, Fishing, and Forestry, Construction, Distributive Trade, and Other End Users).

Market Snapshot

Indonesia freight and logistics market
Study Period:

2017- 2026

Base Year:

2020

CAGR:

>7 %

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Market Overview

The Indonesian freight and logistics market (henceforth, referred to as the market studied) was valued at USD 81.30 billion in 2020, and it is expected to reach more than USD 135 billion by 2026, registering a growth rate of more than 7% during the forecast period.

Indonesia has been severely affected by the COVID-19 crisis. The lack of a centralized and adequate government response has led to uncoordinated responses, including a lockdown on Jakarta and business-as-usual in mines and the agricultural sector. According to the Indonesian Logistics Association (ALI), logistics companies have experienced an approximately 50% decline in overall business performance since the COVID-19 outbreak hit Indonesia in early March 2020. It is reported that logistics volume has been down by 60-70% across the board due to emergency measures taken by the government to prevent COVID-19 transmission. Business-to-consumer (B2C) and customer-to-customer (C2C) delivery services had experienced growth despite the outbreak, but the increase was too small to compensate for the sharp drop in the business-to-business (B2B) segment. The B2C and C2C segments recorded growth due to the increase in demand for food, perishables, and medical supply deliveries despite large-scale social restrictions.

Post COVID-19, as the industry positions itself for recovery and growth, technology will increasingly play a major role to enable all stakeholders, including shippers, transporters, warehouse owners, and vendors, to become more efficient in responding to changing market realities. Although logistics is the heart of domestic and international trade, uncertainty remains a huge problem in Indonesia’s supply chain, exacerbated by the country’s unique archipelagic makeup of 17,000 islands, which means goods cannot be transported using trucks on land alone. A multimodal system, using land and sea transportation as well as warehouses, is needed to reach remote areas of each island.

Logistics using land transportation services are still the mainstay of the transportation services industry. Road transport accounts for 70-80% of the total freight volume that is handled annually within Indonesia’s borders. In value/currency terms, the share of the road freight market has stayed between 40-50% of the total logistics market size.

The shipping industry holds a major role in Indonesia’s trade since 90% of Indonesia’s export commodities are delivered via water transportation. Shipping lines face operational issues, such as port inefficiencies, causing increased waiting and turnaround time, and risks of labor disputes.

Scope of the Report

Freight refers to any type of goods, items, or commodities that are transported in bulk via air transport, surface transport, or sea/ocean transport. Logistics refers to the overall process of managing how resources are acquired, stored, and transported to their final destination.

The Indonesian freight and logistics market is segmented by function (freight transport, freight forwarding, warehousing, and value-added services and other services) and end user (manufacturing and automotive, oil and gas, mining, and quarrying, agriculture, fishing, and forestry, construction, distributive trade, and other end users). The report offers market size and forecasts for the Indonesian freight and logistics market in value (USD billion) for all the above segments.

By Function
Freight Transport
Road
Sea and Inland Water
Air
Rail
Freight Forwarding
Warehousing
Value-added Services and Other Functions
By End User
Manufacturing and Automotive
Oil and Gas, Mining, and Quarrying
Agriculture, Fishing, and Forestry
Construction
Distributive Trade (Wholesale and Retail Segments - FMCG included)
Other End Users (Telecommunications and Pharmaceuticals)

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Key Market Trends

Growing E-commerce in the Country

Indonesia is a promising e-commerce market in Asia-Pacific, with several local and global players competing in the market. Rising internet penetration, increasing digitalization, and the proliferation of websites have been driving e-commerce growth. The COVID-19 pandemic has further accelerated e-commerce sales in Indonesia.

E-commerce is expected to expand in the high double digits in the future in Indonesia. Although the market is not as mature as e-commerce in Malaysia or Singapore, the Indonesian population of more than 260 million makes the absolute numbers of growth in the country high, with millions of new online shoppers every year.

According to Industry reports, Indonesia is the largest and fastest-growing internet economy in Southeast Asia. It is expected to account for 50% of all e-commerce transactions in Southeast Asia by 2025.

Indonesia Freight and Logistics Market Trend1

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Increasing Trucks to Support the Increasing Demand for Road Freight Transport

The population of freight trucks is expected to grow over the forecast period driven by the support of the improvement of toll road infrastructure and the expansion of factories of large companies.

The performance of these business services will be even greater if inter-modal synergies, namely cooperation between trucking service companies and ship and railroad transportation companies, also occur because the process of shipping goods will reach a wider area between regions and islands.

However, government policy support is needed to facilitate truck transport mobility, so that the intensity and volume of trips also increase. 

Indonesia Freight and Logistics Market trend2

Competitive Landscape

The Indonesian freight and logistics industry does not have a high level of industry concentration, especially with regard to the international players. International players are responsible for approximately 30% of the market size. The remaining 70% is made up of local players. Within the 70%, the concentration is medium, and even the ten largest players do not make up for more than 30% of the local market. This can be attributed to the fact that the large players are more focused on freight transport and logistics infrastructure, and hence, they are more than just logistics infrastructure providers. Some of the key players in the market include Samudera, Siba Surya, Kamadjaja Logistics, and CKB Logistics, among others.

Recent Developments

In March 2021, Dimerco commenced operations at Indonesia’s first and only eCommerce Bonded Logistics Center (BLC). The 10,000+ sq m bonded warehouse is the first of its kind in the region. It will provide an integrated, multimodal transport service to customers and deliver significant benefits, including faster e-commerce fulfillment and reduced costs.

In May 2020, Pos Indonesia launched the QPosinAja application as a form of concern for the Indonesian people in meeting the needs of sending goods, especially when the PSBB (Large-Scale Social Restrictions) took place. Through this application, consumers can easily deliver goods without leaving the house.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Value Chain/Supply Chain Analysis

    4. 4.4 Technological Trends and Automation

    5. 4.5 Government Regulations and Key Initiatives

    6. 4.6 Insights into Commodity Flow Statistics and Regional Freight Flows

    7. 4.7 Industry Attractiveness - Porter’s Five Forces Analysis

      1. 4.7.1 Threat of New Entrants

      2. 4.7.2 Bargaining Power of Buyers/Consumers

      3. 4.7.3 Bargaining Power of Suppliers

      4. 4.7.4 Threat of Substitute Products

      5. 4.7.5 Intensity of Competitive Rivalry

    8. 4.8 Insights into Integrated Logistics, Contract Logistics, 3PLs, and Project Logistics

    9. 4.9 Spotlight on Other Segments, such as CEP, Last Mile Delivery, and Cold Chain Logistics

    10. 4.10 Insights into E-commerce Fulfillment

    11. 4.11 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION (Market Size by Value)

    1. 5.1 By Function

      1. 5.1.1 Freight Transport

        1. 5.1.1.1 Road

        2. 5.1.1.2 Sea and Inland Water

        3. 5.1.1.3 Air

        4. 5.1.1.4 Rail

      2. 5.1.2 Freight Forwarding

      3. 5.1.3 Warehousing

      4. 5.1.4 Value-added Services and Other Functions

    2. 5.2 By End User

      1. 5.2.1 Manufacturing and Automotive

      2. 5.2.2 Oil and Gas, Mining, and Quarrying

      3. 5.2.3 Agriculture, Fishing, and Forestry

      4. 5.2.4 Construction

      5. 5.2.5 Distributive Trade (Wholesale and Retail Segments - FMCG included)

      6. 5.2.6 Other End Users (Telecommunications and Pharmaceuticals)

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Concentration Overview, Major Players)

    2. 6.2 Company Profiles

      1. 6.2.1 PT. Samudera

      2. 6.2.2 PT. Siba Surya

      3. 6.2.3 PT. Kamadjaja Logistics

      4. 6.2.4 PT. POS Indonesia

      5. 6.2.5 PT Jalur Nugraha Ekakurir (JNE)

      6. 6.2.6 PT Bhanda Ghara Reksa

      7. 6.2.7 PT. Puninar Jaya

      8. 6.2.8 PT. Multimodatrans Indonesia

      9. 6.2.9 PT. Cardig Logistics Indonesia

      10. 6.2.10 CKB Logistics

      11. 6.2.11 Pancaran Group

      12. 6.2.12 PT. Dunia Express Transindo

      13. 6.2.13 PT. Bina Sinar Amity (BSA Logistics)

      14. 6.2.14 Linc Group - PT. Cipta Mapan Logistic

      15. 6.2.15 Ceva Holdings LLC

      16. 6.2.16 Nippon Yusen

      17. 6.2.17 Kerry Logistics Network Limited

      18. 6.2.18 Sinotrans Ltd

      19. 6.2.19 DB Schenker

      20. 6.2.20 Kuehne + Nagel

      21. 6.2.21 Pt. Agility International

      22. 6.2.22 Nippon Express Co. Ltd

      23. 6.2.23 Expeditors International of Washington Inc.

      24. 6.2.24 Deutsche Post DHL Group

      25. 6.2.25 DSV Solutions Company Limited

    3. *List Not Exhaustive
  7. 7. INSIGHTS INTO PROSPECTIVE CLIENTS FOR LOGISTICS SERVICE PROVIDERS

  8. 8. FUTURE OF THE MARKET

  9. 9. APPENDIX

    1. 9.1 GDP Distribution, by Activity

    2. 9.2 Insights into Capital Flows

    3. 9.3 Economic Statistics - Transport and Storage Sector, Contribution to Economy

    4. 9.4 External Trade Statistics - Export and Import, by Product

    5. 9.5 Insights into Key Export Destinations

    6. 9.6 Insights into Key Import Origin Countries

**Subject to Availability

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Frequently Asked Questions

The Indonesia Freight and Logistics Market market is studied from 2017 - 2026.

The Indonesia Freight and Logistics Market is growing at a CAGR of >7% over the next 5 years.

  • Deutsche Post DHL Group
  • CEVA Logistics
  • PT Samudera
  • PT Siba Surya
  • PT Bhanda Ghara Reksa

Are the major companies operating in Indonesia Freight and Logistics Market.

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