Indonesia Logistics Market Driven by Growing E-commerce Transactions, Surge in
Pharmaceutical Industry and Investment in Infrastructure: Ken Research
Growth in Retail and E-commerce Industry, Huge Import & Exports and Free Trade
Agreements with other nations were the key factors driving the growth in Indonesia Logistics
Market.
In 2016, the total retail market in Indonesia was accounted to be five times the size of
Singapore. Indonesia is projected to grow significantly in future with surge in brands and
companies considering e-commerce expansion. The expanding retail industry in the country
has majorly attributed to the growth in the market size of the logistics industry in Indonesia
with rise in demand of freight forwarding, warehousing and express logistics. The increase
in the retail stores, supermarkets and hypermarkets in the country has triggered the demand
for logistics and warehousing space. The e-commerce industry has been increasing in
Indonesia in past few years and this trend is expected to continue in future. This has led to
high demand of the logistics services impacting the logistics industry in a positive manner.
The import and export of the country lead to the expansion of the logistics industry by
increasing demand of freight forwarding and warehousing for the products to be traded.
The top export destination of Indonesia include the US, China, Japan, Singapore and India
and the top import destinations are China, Singapore, Japan, Indonesia and Thailand. The
increase in the values of imports and exports has made a positive impact on the freight
market owing to the rising demand of logistic services for transporting exported and
imported products. Major products which are exported from Indonesia are coal briquettes,
palm oil, petroleum gas, crude petroleum and rubber whereas top imports include refined
petroleum, broadcasting equipment, vehicle parts, crude petroleum and telephones. The top
import destinations include China, India, Singapore, Japan, Thailand, US, Australia,
Malaysia, Korea, Vietnam and others. Increase in trade with free trade agreements has led to