Market Information

Prospect of Smart Logistics in Indonesia

The massive development of transportation infrastructure in Indonesia plays an important role in improving the development of logistics today.

Based on data from the Central Statistics Agency (BPS) until the second quarter of 2022, the transportation and warehousing or logistics sector in Indonesia grew by 21.27% (YoY). Indonesia’s Logistics and Warehousing Market is expected to reach US 74.9 billion in terms of revenues by the year 2023 (Ken Research).

Currently, Indonesia is focusing on the implementation of the fifth generation (5G) network with a target of 2024 to 2025. E-commerce trends will remain a vital channel for business projections in the coming year. As the transaction value in 2022 where the digital economy posted transactions of USD 53 billion or more than IDR 700 trillion in Indonesia.

Logistics 4.0 is the future of logistics and it is totally supported by the Indonesian government. The Implementation of Logistics 4.0, also known as smart logistics, plays an essential role in realizing efficient domestic trade. Indonesia’s 2025 logistics vision is ‘locally integrated, globally connected,’ which aligns with the development of the national logistics system into Logistics 4.0. The aim is to improve the domestic distribution system in all regions of the country to be connected and fully integrated.