Indonesia - Freight logistics Market by Service, Application, Type - Forecast and Analysis 2024-2028

Indonesia Freight Logistics Market 2024-2028 

The Indonesia - freight logistics market size is forecast to increase by USD 25.57 billion, at a CAGR of 7.7% between 2023 and 2028. The freight logistics market in Indonesia experiences robust expansion, driven by several key factors. Export-import activities have surged, fueled by the country's strategic location and favorable trade policies. The manufacturing sector's growth is another significant contributor, as increased production necessitates efficient logistics solutions for raw materials and finished goods. Moreover, the demand for timely delivery of perishable and medical supplies continues to rise, necessitating advanced logistics capabilities to ensure their integrity and availability. These factors collectively propel the freight logistics market in Indonesia forward, making it a dynamic and vital sector for the nation's economy.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics

The freight logistics market in Indonesia encompasses various sectors, including Fishing, Forestry, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Courier, Pharmaceuticals, Industrial, Cold Storage, Domestic Shipment, and International Shipment. This market plays a crucial role in facilitating trade relations between Indonesia and its global partners. In the Fishing industry, logistics providers ensure the timely and efficient transportation of seafood products to domestic and international markets. Forestry sector relies on logistics for the transportation of raw materials and finished products. The Oil and Gas sector requires specialized logistics services for the transportation of heavy equipment and drilling materials.

Moreover, the mining and Quarrying sector benefits from logistics solutions for the transportation of minerals and other resources. Wholesale and Retail Trade sector relies on logistics for the distribution of goods to various retail outlets. Courier services cater to the urgent delivery needs of businesses and individuals. Subsidized fuels and pharmaceuticals industries require temperature-controlled logistics solutions for the transportation of their products. Industrial sector relies on logistics for the transportation of raw materials and finished goods. Cold storage facilities are essential for the preservation of perishable goods during transportation. Domestic and international shipments require efficient logistics solutions for timely and cost-effective delivery. Tracking and inventory management systems are crucial for ensuring the smooth flow of goods and maintaining accurate records. The textiles industry also benefits from logistics services for the transportation of raw materials and finished products.

Key Market Driver

The growing export-import activities are the key factor driving market growth. As a result of higher oil prices, rising industry demand, and businesses expanding operations, imports increased by 30.85% (YOY) to USD 21.97 billion in March 2022, driven mostly by a rise in raw materials and capital goods. In November 2021, exports reached a record high of USD 22.84 billion, while imports reached a record high of USD 21.35 billion.

Moreover, rising global commodity prices are expected to have a positive impact on Indonesia's trade during the forecast period, as rising prices of export commodities such as coal and CPO outweigh the rising costs of imports, especially crude oil. As of March 2022, China remains Indonesia's largest export destination, with non-oil and gas exports worth USD 5.48 billion. Therefore, increasing import and export activities in the country will increase the demand for supply chain and logistics improvements, driving the growth of the Indonesian freight logistics market during the forecast period.

Significant Market Trends

The growing e-commerce industry is the main trend driving the growth of the Indonesian freight logistics market. Indonesia's population is over 260 million, and although the country's absolute growth rate is high, with millions of new online shoppers visiting each year, the e-commerce industry is not as developed as Malaysia or Singapore. Over the past few years, fundamental developments in the sector and the national economy have mostly been responsible for the country's e-commerce market expansion.

Moreover, among the key factors, the accessibility of inexpensive mobile phones and the Internet has increased consumer penetration and allowed them to use a variety of e-commerce platforms more easily than accessing an offline and physical store. Indonesia has one of the highest Internet penetrations in the region, with nearly 72.87% in 2021. Thus, rising e-commerce activities in the country will spur the demand for improved and technologically advanced logistics and supply chain solutions, which, in turn, will boost the growth of the freight logistics market in Indonesia during the forecast period.

Major Market Challenge

High infrastructure cost is a challenge that affects market growth. High investments in infrastructure are required to ship goods through intermodal transportation. Investments include the installation of gantry cranes and other heavy-duty cranes necessary to lift the containers at different ports while changing the mode of transport. For instance, whenever the container arrives at a seaport, it needs to be transferred on either a flatbed, rail, or truck.

In addition, necessary investments for rail and road access are also required. Also, roads are necessary so that trucks can easily access these ports. The high investments are often delayed and time-consuming, thus harming the demand for freight logistics. Hence, these high infrastructure cost requirements are expected to impede the growth of the market during the forecast period.

Indonesia Freight Logistics Market Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Indonesia Freight Logistics Market Customer Landscape

Who are the Major Indonesia Freight Logistics Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• DB Schenker: The company offers freight logistics such as air freight, ocean freight, contract logistics solutions, and others.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• BSA Logistics Indonesia
• Deutsche Post AG
• Dimerco Express Corp.
• DSV AS
• Dunex Inc.
• Kuehne Nagel Management AG
• LNJ Logistics
• Logistics Plus Inc.
• Nippon Yusen Kabushiki Kaisha
• Pancaran Group
• POS Indonesia
• PT CIPTA KRIDA BAHARI
• PT. Cipta Mapan Logistik
• PT. Kamadjaja Logistics
• PT. Multimodatrans Indonesia
• PT. Siba Surya
• PT. Tiki Jalur Nugraha Ekakurir
• Puninar Logistics
• Rhenus SE and Co. KG

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

What is the Largest-Growing Segments in the Indonesia Freight Logistics Market?

The transportation segment is estimated to witness significant growth during the forecast period. The paid process of carrying goods, cargo, and other things from one location to another using wheeled vehicles is known as freight transportation. There are three major types of freight transportation available for shippers in Indonesia, which include air freight, sea freight, and road freight. Given the industry's significant import and export activity with Asian nations such as China and India, sea and land freight movements dominate the freight transportation segment in Indonesia. 

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The transportation segment was the largest segment and was valued at  USD 24.09 billion in 2018. Due to Indonesia's geographical limitations, land cannot be used for international freight. The Indonesian road freight transport sector mostly comprises industries such as construction, textiles and apparel, machinery and equipment, electrical items, non-containerized commodities, electronics, and automobiles. Hence, such factors will facilitate Indonesia - freight logistics market growth during the forecast period.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments. 

• Deployment Outlook
  • Transportation
  • Warehousing
  • Others

• Application Outlook 
  • Manufacturing
  • Automotive
  • Consumer goods
  • Retail industry
  • Agriculture and others

• Region Outlook 
  • 3PL
  • 4PL

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Market Analyst Overview

The freight logistics market in Indonesia is a vital component of the country's growing economy, encompassing various sectors such as parcel and freight forwarding, warehousing and storage, and the broader logistics ecosystem. This market is driven by several key factors, including port efficiency, foreign direct investment, and the development of transportation infrastructure in sectors like vehicle and transportation, ferry ports, and air transportation, air freight. Indonesia's manufacturing, agriculture, and pharmaceuticals industries are significant growth enablers for the freight logistics market. The market also caters to customer service needs and resource allocation, while addressing concerns related to carbon footprint and energy-efficient transportation solutions.

Moreover, key players in the market include providers of trucking services, maritime freight, international freight transportation, and advanced technology solutions for optimization of routes and fuel consumption. The market is further influenced by trade agreements, foreign investment, and eco-friendly transportation solutions, such as electric trucks and blockchain technology for transparency and security in transactions.

Additionally, the market is impacted by various industries like fishing and forestry, oil and gas, and rail and road transport,road logistics. Disaster management and shipping facilities are also essential considerations for the freight logistics market in Indonesia. Overall, the market is poised for growth, driven by the country's economic development and the increasing demand for efficient and reliable logistics solutions.

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What are the Key Data Covered in this Market Forecast Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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