Indonesia’s Transport and Logistics Industry Continues to Grow until 2029
Indonesia’s transport and logistics industry is estimated to be growing at a CAGR of 5.26% from the period of 2023 to 2029. The market size is expected to increase from USD 112.18 billion in 2023 to USD 152.54 billion in 2029.
To improve the national logistics performance, the Indonesian government has developed an action plan by reducing logistics cost from 24% to 17% of the GDP in 2024. Indonesia also aims to reach its infrastructure investment goal of USD 429 billion by 2024 and facilitate the transportation of goods by road in coming years, especially because road is Indonesia’s fastest growing segment by mode of transport.
E-commerce industry also significantly contributes to the growth of Indonesia’s transport and logistics industry. The expansion of e-commerce industry in Indonesia is expected to be growing at a CAGR of 10.41% from the period of 2023 to 2027, with the demand for express services keep increasing. Aside from that, the cold storage services industry also experiences significant growth especially in the Greater Jakarta area with the projected CAGR of 7.98%.
Therefore, Indonesia has become one of the most sought-after markets globally for e-commerce and logistics industry, with large local players and global heavyweights competing for this enormous growing market.