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Indonesia Freight and Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 150 Pages
  • August 2022
  • Region: Indonesia
  • Mordor Intelligence
  • ID: 4514810


  • Ceva Logistics AG
  • DB Schenker
  • Kuehne + Nagel
  • Pancaran Group
  • PT Kamadjaja Logistics
  • PT Puninar Jaya
The Indonesian freight and logistics market is anticipated to register a CAGR of 9% 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. 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.

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.

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.

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. Indonesia has one of the highest internet penetrations in the region, with nearly 72.87% in 2021.

The COVID-19 pandemic has turned out to be a boon for e-commerce in Southeast Asia, including Indonesia. The physical distancing requirement during the pandemic has paved the way for a more home-centric lifestyle. The pandemic has also prompted many micro, small, and medium enterprises (MSMEs) to shift to online platforms. It has been reported that the number of online transactions for groceries and takeaway food has grown significantly, especially during the lockdown period. Some marketplaces reported a significant increase in demand for essential products.

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. Online shoppers in Indonesia grew from 75 million pre-covid to 85 million people during the pandemic.

Due to the sudden surge in e-commerce, there is a demand for the delivery of products, which is directly propelling the growth of logistic services.

Growth of Exports and Imports are Driving the Freight Market

Indonesia is in good shape for economic recovery, provided the COVID-19 pandemic continues to be managed properly, with a GDP growth rebound of up to 3.7% in 2021 and projected at 5.94% in 2022. It booked record-high export and trade surpluses in 2021, bolstered once more by high coal and crude palm oil (CPO) prices, benefiting from a recovery in global trade.

Indonesia imported goods worth USD 91 billion (roughly just over IDR 1.2 quadrillion) in the first half of 2021. This corresponds to a growth of 28.4% compared to the same period last year, i.e., 2020, and is the highest value in recent years. This is an astonishingly positive trend, as the economy only grew by 3.1% in the first six months of 2021, which is well below the pre-crisis level.

Imports in the first half of 2021 were almost on par with the record year 2012 when goods worth around USD 191.7 billion were imported. This was during a lockdown in July and August that was likely to have dampened the demand for foreign goods.

At the same time, Indonesia exported goods worth USD 102.9 billion from January to June 2021, an increase of 34.8%. This could even exceed the high foreign trade surplus of last year for the year as a whole. Two-thirds of all foreign purchases today come from the East Asian region or ASEAN. North America, including Mexico, only accounts for 7%, and Europe accounts for hardly more than 5%.

The import of motor vehicles increased by almost 20% in 2021 compared to 2020. However, further growth opportunities are limited because the government is following a strict localization policy.

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. Due to a fragmented market, there is high competition and quite a number of mergers and acquisitions taking place in the market. In October 2020, Indonesia’s logistics startup Shipper acquired two local delivery companies, Porter and Pakde. The acquisitions enable Shipper to provide e-commerce sellers with warehousing and fulfillment solutions on top of its core shipping aggregator solution. In February 2021, Warung Pintar acquired the B2B logistic startup company Bizzy Digital. The acquisition will enable the companies to explore "synergies" from opposite ends of the supply chain.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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  • Ceva Logistics AG
  • DB Schenker
  • Kuehne + Nagel
  • Pancaran Group
  • PT Kamadjaja Logistics
  • PT Puninar Jaya

1 Introduction
1.1 Study Assumptions
1.2 Scope of the Study
2 Research Methodology3 Executive Summary
4 Market Insights and Dynamics
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Value Chain/Supply Chain Analysis
4.4 Technological Trends and Automation
4.5 Government Regulations and Key Initiatives
4.6 Insights into Commodity Flow Statistics and Regional Freight Flows
4.7 Porter's Five Forces Analysis
4.8 Insights into Integrated Logistics, Contract Logistics, 3PLs, and Project Logistics
4.9 Spotlight on Other Segments, such as CEP, Last-mile Delivery, and Cold Chain Logistics
4.10 Insights into E-commerce Fulfillment
4.11 Brief on Container Logistics in Indonesia
4.12 Impact of COVID-19 on the Market
5 Market Segmentation (Market Size by Value)
5.1 Function
5.1.1 Freight Transport Road Shipping Air Rail
5.1.2 Freight Forwarding
5.1.3 Warehousing
5.1.4 Value-added Services and Other Functions
5.2 End User
5.2.1 Manufacturing and Automotive
5.2.2 Oil and Gas, Mining, and Quarrying
5.2.3 Agriculture, Fishing, and Forestry
5.2.4 Construction
5.2.5 Distributive Trade
5.2.6 Other End Users
6 Competitive Landscape
6.1 Overview (Market Concentration Overview and Major Players)
6.2 Company Profiles
6.2.1 PT Samudera
6.2.2 PT Siba Surya
6.2.3 PT Kamadjaja Logistics
6.2.4 PT POS Indonesia
6.2.5 PT Jalur Nugraha Ekakurir (JNE)
6.2.6 PT Bhanda Ghara Reksa
6.2.7 PT Puninar Jaya
6.2.8 PT Multimodatrans Indonesia
6.2.9 PT Cardig Logistics Indonesia
6.2.10 CKB Logistics
6.2.11 Pancaran Group
6.2.12 PT Dunia Express Transindo
6.2.13 PT Bina Sinar Amity (BSA Logistics)
6.2.14 Linc Group - PT Cipta Mapan Logistic
6.2.15 Ceva Logistics AG
6.2.16 Nippon Yusen Kabushiki Kaisha (NYK)
6.2.17 Kerry Logistics Network Limited
6.2.18 Sinotrans Ltd
6.2.19 DB Schenker
6.2.20 Kuehne + Nagel
6.2.21 Pt. Agility International
6.2.22 Nippon Express Co. Ltd
6.2.23 Expeditors International Of Washington Inc.
6.2.24 Deutsche Post DHL Group
6.2.25 DSV Solutions Company Limited*
7 Insights into Prospective Clients for Logistic Service Providers8 Future of the Market
9 Appendix
9.1 GDP Distribution, by Activity
9.2 Insights into Capital Flows
9.3 E-commerce and Cross-border E-commerce in ASEAN (Market Size, Growth Rate, and Forecast)
9.4 E-commerce Sales in Indonesia, by Product
9.5 External Trade Statistics - Export and Import, by Product
9.6 Insights into Key Export Destinations
9.7 Insights into Key Import Origin Countries


A selection of companies mentioned in this report includes:

  • PT Samudera
  • PT Siba Surya
  • PT Kamadjaja Logistics
  • PT POS Indonesia
  • PT Jalur Nugraha Ekakurir (JNE)
  • PT Bhanda Ghara Reksa
  • PT Puninar Jaya
  • PT Multimodatrans Indonesia
  • PT Cardig Logistics Indonesia
  • CKB Logistics
  • Pancaran Group
  • PT Dunia Express Transindo
  • PT Bina Sinar Amity (BSA Logistics)
  • Linc Group - PT Cipta Mapan Logistic
  • Ceva Logistics AG
  • Nippon Yusen Kabushiki Kaisha (NYK)
  • Kerry Logistics Network Limited
  • Sinotrans Ltd
  • DB Schenker
  • Kuehne + Nagel
  • Pt. Agility International
  • Nippon Express Co. Ltd
  • Expeditors International Of Washington Inc.
  • Deutsche Post DHL Group
  • DSV Solutions Company Limited*