Indonesia logistics market to reach $240 billion in 5 years

Indonesia logistics market to reach $240 billion in 5 years
Indonesia logistics market to reach $240 billion in 5 years

Indonesia Logistics Market is currently in the growth stage with presence of various organized and unorganized players consisting of a combination of shipping and international freight forwarders, courier providers which are mainly engaged in land transportation and total logistics services providers that operate a multimodal transport model.

JAKARTA (alfijak): Players are taking up and diversifying into 3PL segment to enhance their market share. Presently, there are more than 155 logistics and warehouse service providers in Indonesia.

The freight forwarding market size has increased with the boost in air freight and sea freight, the development of transportation infrastructure and increase in number of freight forwarders, increasing industrial activities, growing FMCG market and rising e-commerce industry.

Road freight has the highest share owing to the high number of deliveries that take place through road network. Air freight had the second largest share in the country freight forwarding market.

Asian Countries flow corridor is the largest contributor in terms of revenue in the freight forwarding market owing to free trade agreement.

The leading players in the industry are DHL, CEVA Logistics, Yusen Logistics, Agility Logistics and others. The freight forwarding market is forecasted to dominate the Indonesia logistics market in future

Air express logistics has dominated the Indonesia express logistics with 61.0% revenue market share during 2016 owing to major international shipments falling in this category.

B2B segment has dominated the express logistics market in Indonesia during 2016.

The major players of Express logistic in Indonesia include DHL, FEDEX, First Logistics and JNE Express.

High growth rate can be advocated from the growth expected in the e-commerce industry, rise in the demand of perishable goods and the increased use of express delivery by people in case of personal and corporate documents and last mile delivery.

According to the report by Ken Research titled “Indonesia Logistics and Warehousing Market by Sector (Freight Forwarding, Warehousing, VAS), by Domestic and International Services – Outlook to 2021“, a noteworthy CAGR of 7.9% in revenue in Indonesia Logistics Market is expected in next 5 years till 2021.

Freight Forwarding is expected to be the fastest growing segment in future with an expected CAGR of 9.2% from 2016-2021. (

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