Market Size of indonesia freight and logistics Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2030 |
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Market Size (2024) | USD 122.2 Billion |
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Market Size (2030) | USD 178.1 Billion |
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Largest Share by Logistics Function | Freight Transport |
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CAGR (2024 - 2030) | 6.48 % |
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Fastest Growing by Logistics Function | Courier, Express, and Parcel (CEP) |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Indonesia Freight and Logistics Market Analysis
The Indonesia Freight and Logistics Market size is estimated at 122.2 billion USD in 2024, and is expected to reach 178.1 billion USD by 2030, growing at a CAGR of 6.48% during the forecast period (2024-2030).
122.2 Billion
Market Size in 2024 (USD)
178.1 Billion
Market Size in 2030 (USD)
5.63 %
CAGR (2017-2023)
6.48 %
CAGR (2024-2030)
Fastest Growing Market by Mode of Transport
8.25 %
Projected CAGR, Air, 2024-2030
As of 2023, Indonesia had 251 existing airports. From 2020 to 2024, four new airports were completed and are now operational, supporting the growth of the air freight transport market.
Largest CEP Market by Destination
63.90 %
value share, Domestic, 2023
E-commerce has been the key catalyst for the growth of the domestic CEP segment. The Indonesian e-commerce market grew from USD 43.3 billion in 2022 to USD 45.28 billion in 2023.
Largest Market by End User Industry
34.34 %
value share, Wholesale and Retail Trade, 2023
Indonesia's retail market is one of the most promising in Asia, supported by an expanding middle class with better purchasing power. Retail sales grew 1.6% in Q4 2023, after growing by 1.4% in Q3 2023.
Largest Warehousing Market by Temperature Control
91.36 %
value share, Non-Temperature Controlled, 2023
The expansion of the e-commerce industry and the increasing need for express services have been instrumental in driving the growth of non-temperature-controlled warehousing.
Fastest Growing Warehousing Market by Temperature Control
6.22 %
Projected CAGR, Temperature Controlled, 2024-2030
The OTC pharmaceuticals market in Indonesia is expected to record a CAGR of 7.88% from 2024 to 2028, driving the demand for temperature-controlled warehousing.
Government investment in Indonesian infrastructure is anticipated to propel the market's growth
- Infrastructure development has gained global traction in recent years. In line with this, the Indonesian government, under Presidential Instruction No. 5/2020, has devised a comprehensive plan to enhance the nation's logistics ecosystem. A key objective of this reform is to trim logistics costs from 24% to 17% of the GDP by 2024. A pivotal strategy in achieving this goal is bolstering port efficiency.
- Despite the pandemic-induced slump in motor vehicle sales and production, FDI in Indonesia's vehicle and transportation sectors stood at USD 1,502 million in 2021, climbing further to USD 1,522 million in 2022. In a testament to its commitment to economic growth amidst the pandemic, Indonesia inked eight trade agreements in 2021. Notably, negotiations are underway for agreements such as the Indonesia-Chile FTA, Indonesia-EFTA FTA, Indonesia-South Korea FTA, Indonesia-US FTA, and Indonesia-EU FTA.
- By Q1 2023, several infrastructure projects reached completion and commenced operations. The government, targeting 36 ferry ports by 2024, had already built 11. The maritime highway program, a key focus, witnessed ongoing optimization. Presently, 32 ships ply 32 routes, making stops at 114 ports, including those in Papua and West Papua. The government's sights are also set on enhancing air transportation infrastructure. It aims to construct 10 new airports, catering to 43 air routes, by the close of 2024. Looking ahead, the "Indonesia Emas" (Golden Indonesia) 2045 vision aspires to fortify the domestic shipping industry, aligning its capacity with optimal export-import dynamics.
Understand The Key Trends Shaping This Market
