Indonesia Freight and Logistics Market - Growth, Trends, and Forecasts (2020 - 2025)

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, Healthcare and Pharmaceutical, and Other End Users)

Market Snapshot

Study Period:

2016-2025

Base Year:

2019

CAGR:

10.27 %

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Market Overview

The Indonesia freight and logistics market is expected to witness a CAGR of 10.27% during the forecast period (2020 - 2025).

The land transportation service industry in Indonesia may continue to develop gradually. Furthermore, this development is likely to be attributed to the ever-increasing demand, as the price of logistics is rapidly accelerating, which accounts for 29% of the burden on Indonesia’s GDP.

Logistics using land transportation services are still the mainstay of the transportation services industry, with around 90% of logistics in Indonesia involving land transportation. The limited number of vehicles becomes an obstacle, which can be overcome by the overload in the transportation of goods (Over Dimension and Overload - ODOL).

Road transport accounts for 70-80% of the total freight volume handled annually within the Indonesian borders. In value/currency terms, the share of the road freight market stayed between 40% and 50% of the total logistics market size.

Road transport is the lifeline for the movement of goods for such a large population. Areas, such as Java and Bali, depend mostly on road transport. In case of Bali, majority of freight movement is connected to the development of the hospitality industry’s projects and tourist consumption. Movement of goods within the small islands is more expensive than receiving the goods by sea from other islands and countries.

Scope of the Report

A complete background analysis of the Indonesia freight and logistics industry, which includes an assessment of the economy, emerging trends by segments and regional markets, significant changes in market dynamics, and market overview, is covered in the report. The report also covers the impact of COVID - 19 on the market.

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 has the largest population in Southeast Asia by far, and its e-commerce penetration is still very low, making it one of the hottest e-commerce markets in the world. Attracting both global and local companies’ interests, Indonesia now has a fast-growing e-commerce scene and is poised to become a global powerhouse.

E-commerce is expected to expand in 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.

The gross merchandise volume (GMV) for online transactions is predicted to reach USD 130 billion by the end of 2020. This growth of e-commerce is a major driver for the cross-border and domestic road freight logistics market growth.

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Increasing Trucks to support increasing demand for road freight transport

The population of freight trucks is expected to grow to 50% every year in the next few years. The growth was due to 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. Among the policies needed is monitoring the weighbridge, which is placed directly at the entrance and exit of the industrial area, given the flow of traffic in and out of trucks in places.

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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 10 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, are more than just logistics infrastructure providers.

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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 on 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 on 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 on E-commerce Fulfillment

    11. 4.11 Imapct of COVID-19 on the market

  5. 5. MARKET SEGMENTATION

    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

    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

  7. *List Not Exhaustive
  8. 7. INSIGHTS ON PROSPECTIVE CLIENTS FOR LOGISTICS SERVICE PROVIDERS

  9. 8. FUTURE OF THE MARKET

  10. 9. APPENDIX

    1. 9.1 GDP Distribution, by Activity

    2. 9.2 Insights on 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 on Key Export Destinations

    6. 9.6 Insights on Key Import Origin Countries

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