Sample - Indonesia Freight and Logistics Market (2021-2026) - Mordor Intelligence1625641663523
Sample - Indonesia Freight and Logistics Market (2021-2026) - Mordor Intelligence1625641663523
Sample - Indonesia Freight and Logistics Market (2021-2026) - Mordor Intelligence1625641663523
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1.1 Study Assumptions and Market Definition 4.11 Container Logistics in Indonesia
2. RESEARCH METHODOLOGY 4.11.2 Dynamics (Driving Factors and Restraints), and Key
Value-added Services
3. EXECUTIVE SUMMARY
4.11.3 Spotlight on Container Logistics Players
4. MARKET INSIGHTS AND DYNAMICS
4.11.4 Spotlight on Container Shipping Lines
4.1 Market Overview
4.11.5 Future Outlook
4.2 Market Dynamics
4.12 Impact of COVID-19 on the Market
4.2.1 Drivers
5. MARKET SEGMENTATION ANALYSIS (MARKET SIZE (2017-
4.2.2 Restraints
2026), GROWTH, TRENDS, AND FORECAST)
4.2.3 Opportunities
5.1 By Function
4.3 Value Chain/Supply Chain Analysis
5.1.1 Freight Transport
4.4 Technological Trends and Automation
5.1.1.1 Road
4.5 Government Regulations and Key Initiatives
5.1.1.2 Shipping
4.6 Insights on Commodity Flow Statistics and Regional Freight Flows
5.1.1.3 Air
4.7 Porter’s Five Forces Analysis
5.1.1.4 Rail
4.8 Insights on Integrated Logistics, Contract Logistics, 3PLs, and Project
5.1.2 Freight Forwarding
Logistics
5.1.3 Warehousing
4.9 Spotlight on Other Segments, such as CEP, Last Mile Delivery, and
Cold Chain Logistics 5.1.4 Value Added Services and Other Services
5.2.2 Oil and Gas, Mining, and Quarrying 6.2.13 PT Bina Sinar Amity (BSA Logistics)
5.2.3 Agriculture, Fishing, and Forestry 6.2.14 Linc Group - PT Cipta Mapan Logistic
6.2.5 PT Jalur Nugraha Ekakurir (JNE) 6.2.25 DSV Solutions Company Limited
6.2.6 PT Bhanda Ghara Reksa 7. INSIGHTS ON PROSPECTIVE CLIENTS FOR LOGISTICS SERVICE
The base currency considered is USD. Conversion of other currencies to USD The Indonesian freight and logistics market report provides insights on
is considered based on the average exchange rate for the respective review market dynamics, value chain/supply chain analysis, technological trends
period years. The exchange rate conversion for the forecast period is and automation, government regulations and key initiatives, commodity
determined according to the base year’s conversion rates flow statistics and regional freight flows. The report also includes Porter’s
five forces analysis, insights on integrated logistics, contract logistics, 3PLs,
The base year is identified based on the availability of annual reports and
and project logistics, spotlight on other segments, such as CEP, last mile
secondary information. The base year considered for this study is 2020.
delivery, cold chain logistics, insights on e-commerce fulfillment, and the
The review period considered for this study is 2017-2020. The CAGR is for
impact of the COVID-19 pandemic on the market.
the forecast period, 2021-2026.
The report covers qualitative and quantitative information on segmentation
Distribution of primary interviews conducted is based on the regional share
by function (freight transport, freight forwarding, warehousing, value-added
of the market and the presence of key players in each region.
services, and other services) and end-user industry (manufacturing
As a result of data triangulation through multiple methodologies and (including automotive), oil and gas, mining, and quarrying, agriculture,
approaches, the weighted averages of resulting estimates are considered to fishing, and forestry, construction, distributive trade, pharmaceutical and
be the final values. healthcare, and other end-user industries.
◼ Construction
◼ Distributive Trade
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Finalize report content and establish a Report delivery with high quality market insights, competitive landscape, etc.,
deliverable format as per the proposed content
• Financial Journals
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Analysis
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• Thought Leader Briefings Define Objective and Scope
2. Analyze and
Collate Suppliers, OEMs, Raw Material Suppliers,
Secondary Research Research Process
Different and Customers’ Perspective
Perspectives
Identify and Assess Top Companies and their
Primary Research Best Practices
3. Interview
• CEOs/CFOs Participants
• Board Members
✓ Outcome – Top-performing Companies,
• Research Heads based on Revenue Generated
• Strategic Decision-makers ✓ Overall Understanding of the Market,
Industry Experts, Consultants, Industry Trends, and Events
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Plant Managers, and
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Strategists
Company Annual Reports Solution Vendors Industry Experts Compilation of Insights from
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Government Publications Government Certification Subject-matter Experts Report
Agencies
In-house Experts
This phase involves a thorough synthesis of existing publications across the ◼ At Mordor, we pool in industry experts across the value chain, to gather first-hand
web to gather meaningful insights on the current situation of the market, insights on the market studied. In addition to these knowledgeable industry veterans
technological developments, and any other market-related information. The or retired experts, consultants and freelancers are a call away to collaborate with
sources include, but are not limited to: Mordor on any assignment that requires real-time industry insights.
◼ Scientific papers, journals, and publications ◼ We are also equipped to conduct market surveys to gather qualitative insights and
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of the commodity, if available ◼ Primary research is used, both, to validate the data points obtained from secondary
◼ Industry and government websites for blogs, magazines, and other research and to fill the data gaps after secondary research. Data gathered during the
publications primary research phase are useful to arrive at critical insights, both qualitative and
quantitative; these insights can be used to ascertain the following:
◼ Conference proceedings and association publications
◼ Critical market dynamics (drivers, restraints, future, and regulations) and their
◼ Investor presentations, technical brochures, annual reports, press releases,
impact
transcripts of key personnel interviews, and other strategic publications by
several competitors in the market ◼ Market distribution across various segments
◼ Product information, including technical specifications, approvals, patents, ◼ Market entry for new companies and insights on competitive landscape
etc.
MODES OF PRIMARY RESEARCH
◼ Public sources (OECD, IMF, World Bank, Statistics Indonesia (Badan Pusat
Statistik), Ministry of Transportation, Trade Associations, etc.)
•and Other
◼ Paid sources (Questel Orbit, Factiva, Bloomberg, Seeking Alpha, etc.) Modes of
Primary
Telephonic Email Chat Virtual Research
◼ Other sources, including journals, articles, etc. (for prices and usage Interviews Interviews Interviews Council
Surveys
patterns)
REPORT After the data is curated, analysts populate the report. From data and forecasts,
WRITING insights are drawn to visualize the entire ecosystem in a single report.
FREIGHT AND LOGISTICS MARKET The Indonesian freight and logistics market (henceforth, referred to as the
Revenue in USD billion, Indonesia, 2017-2026 market studied) is estimated to be valued at USD XX billion in 2020, and it is
expected to reach USD XX billion by 2026, witnessing a CAGR of XX% during
XX%
CAGR
the forecast period of 2021-2026.
The high logistics cost remains one of the challenges for the logistics sector.
The companies operating in the Indonesian trucking industry are currently
focusing on integrating technology, such as online trucking platforms, which
helps them in finding clients and reducing empty hauls.
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 billion (year-on-year comparison).
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.11.1 Overview
Indonesia’s logistics sector recorded solid growth in 2019, supported by high growth in railway and sea
transportation, as well as warehousing, but the COVID-19 pandemic has disrupted the growth for 2020 as
businesses limit global operations.
The trucking business has the potential to develop more rapidly by utilizing the development of ICT
through digitizing logistics or e-commerce.
The challenge is that Indonesia's logistics capacity is still limited, such that it cannot keep up with the
rapid development of e-commerce.
A large fleet of trucks is needed, with urban truck transportation being constrained by traffic congestion
and restrictions on road access.
The high operational costs of trucking are caused by low efficiency and productivity, as well as returns and
return shipping.
Both the vibrant e-commerce sector and the improvements to Indonesia’s infrastructure seemed to have
naturally led to the growth of the warehousing sector.
One major example has been the launch of the first e-commerce dedicated Bonded Logistic Center (PLB)
by PT Uniair Indotama Cargo. Sanctioned by the Indonesian government, the warehouse was touted as a
one-stop solution for Indonesian businesses looking to export their products overseas.
It is reported that logistics volume has been down by 60% to 70% across the board due to emergency measures taken by the government to prevent COVID-19
transmission.
Business-to-consumer (B2C) and customer-to-customer (C2C) delivery services had experienced growth despite the outbreak, but the increase was too small to
compensate for the sharp drop in the business-to-business (B2B) segment.
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.
Motor Vehicle production in Indonesia in 2020 fell 46.6% due to the impact of the COVID-19 pandemic. All brands have witnessed decline, while Nissan & Renault
were completely out of production.
Motor Vehicle production in Indonesia in 2020 was recorded at only 690,150 units or 599,697 less (-46.5 percent) compared to the 2019 achievement of 1,289. 847
units. Gaikindo recorded 19 automotive brands as manufacturers assembling in Indonesia in 2019. However, only 17 of them are still in production in 2020.
As of the third quarter of 2020, the average rent for warehouse and distribution spaces in Tangerang was about IDR 83 thousand per square feet per annum.
Tangerang is the closest location to Indonesia's capital city and financial center, Jakarta. It is not surprising that the average rent there is much higher compared to the
other outlying areas.
In January 2021, there were 52,910 cars moving from factories to dealerships. Reduced 7.3 percent from December last year. Several manufacturers such as Daihatsu,
Mitsubishi Fuso, Mercedes-Benz, Hyundai, and several others recorded positive percentages.
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.
Besides the integration of FTZ authorities, the government is planning to establish six special economic zones (KEK) within the Batam FTZ. It has also approved the
establishment of maintenance, repair, and operations (MRO) at the Hang Nadim KEK and the Nongsa Digital Park KEK with an estimated investments of IDR 6.2 trillion
and IDR 16 trillion, respectively.
Additional investment incentives, such as 100 percent corporate tax holiday, value added tax (VAT) and luxury tax exemptions for imported goods and import duty
deferment for raw materials, will be provided for companies operating inside the KEK.
In the past few years, technological innovation in Indonesia’s problem-ridden logistics sector has largely come from players in the express delivery and trucking space.
However, the coming years could see the rise of other logistics verticals, as investors continue to look for game-changers and potential winners in the industry.
With Indonesia’s growing middle-class population driving the rapid growth in consumption and e-commerce, coupled with the limited supply of modern logistics
facilities in Jakarta, the Indonesian logistics property sector is seeing strong demand,
In Jan 2021, state port operator PT Pelabuhan Indonesia II signed an agreement with BP Batam, the authority of the Batam FTZ, to develop Batu Ampar Port, with work
slated to begin this year.
The development will see the container stacking area of the port expanded from the current 2 hectares to 12 ha, while the container loading and unloading
performance would see an upgrade to 20 containers per hour from an average of 5 containers per hour.
Under prevailing Indonesian law, the same business entity can control both rail infrastructure and rail operations over that infrastructure. Currently, PT Kereta Api
Indonesia (Persero) (PT KAI), a state-owned enterprise (SOE), and its subsidiaries are the only entities engaged in the rail infrastructure and rail operations industry,
although other entities are free to enter the industry providing that certain requirements are met.
The rapid development of Indonesia’s logistic system in terms of freight transport and infrastructure connections opens opportunities to reduce emissions and
improve transport efficiency.
The Indonesian Government is guiding all sectors towards digitalization, making ‘Indonesia 4.0’, and rail is no exception. Guidance to provide future planning until
2030 is set out in the Indonesia National Railway Master Plan (INRMP), Minister of Transportation Regulation No. KP.2128/2018.
The logistical transportation using trains has a lot of potential to be continuously improved. Starting from facilities and infrastructure, to rates that are considered
cheaper. In terms of logistic transportation rates using trains are much cheaper than trucks, which are only IDR 1,500 / kg with a minimum shipping limit of 5 kg.
The increase in the delivery of food and horticulture during the pandemic has become an input for PT Kereta Api Indonesia (PT KAI) as the operator by providing new
facilities, namely refrigeration so that these items remain durable and fresh to their destination.
PT KAI has continued to increase revenue from the freight transportation business line. Despite the growth in the passenger transportation business, the freight
transportation business is now the main source of income.
4.2.1 DRIVERS
GOVERNMENT INITIATIVES & PLANS TO SUPPORT INFRASTRUCTURE:
In late 2019, the government announced the completion of the Palapa Ring project, a priority infrastructure project that aimed to provide access to 4G internet services
to more than 500 regencies across the country.
According to the government, the project’s completion would pave the way for smarter cities, new start-ups, more household entrepreneurs, and most critically, boost
the overall digital economy to the targeted USD 100 billion by 2025.
Huge investments in new airports and Special Economic Zones have been made by the government through public-private partnerships to reduce the high logistics
cost and ease the transportation process. The development of toll roads and rail links is providing industry stakeholders with some additional comfort and confidence.
The transportation ministry has allotted USD 1.36 million to fund land programs focused on Riau Islands and Papau. Also, IDR 436 billion has been allotted from the
state budget to subsidize the maritime highway program, which is a subsidized cargo program by the government.
Also, the government plans to issue sukuk (sharia-compliant bonds) worth USD 1.96 billion in 2021 to finance the country’s costly infrastructure projects and spur
economic growth.
It will use the proceeds to finance 870 development projects to be managed by 11 ministries, including the Transportation Ministry, the Defense Ministry, as well as the
Public Works and Housing Ministry (PUPR).
The biggest allocation would be made to the transportation sector, as the Transportation Ministry and the PUPR are tasked with strengthening connectivity and logistics
in 2021. The funds would go toward infrastructure projects such as national parks, bridges, laboratories, schools, and airports.
The government had also spent 91% of the IDR 23.29 trillion raised from sukuk to finance infrastructure spending in 2020, when the economy plunged into a recession
for the first time in two decades. It had earmarked IDR 414 trillion in the 2021 state budget for construction and infrastructure projects.
4.2.1 DRIVERS
Shopee Tokopedia Bukalapak Lazada Indonesia Blibli Orami Bhinneka Ralali JD.id Sociolla
Note: Complete data will be enclosed in full report
4.2.1 DRIVERS
The logistics industry trends are dependent on significant changes driven by the implementation of technology-driven innovations in the business processes. The
next-generation logistics management solutions are moving towards making the global supply chains more customer-centric and sustainable.
From artificial intelligence (AI) to blockchain, and big data to robotics, logistics players are on a constant mission to understand and implement new and
developing technologies in the most effective and efficient ways possible
With the outbreak of COVID-19, several logistics companies faced challenges such as supply-chain capacity constraints and governmental restrictions, which, led
to the suspension of key services in some routes, and freight capacity and cost pressure issues.
Blockchain has the power to transform almost every element of this industry. Connected fleets powered by the internet of everything is already an industry buzz-
term.
Such a fleet needs a higher level of security and blockchain is a matchless solution in this regard. Blockchain technology can dramatically improve the efficiency
and reliability of supply chains in the logistics industry.
E-commerce, retail and automotive are driving soaring automation demand in the Indonesia as companies strive to survive in a competitive market by reducing
human error, increasing productivity and boosting efficiency in warehousing (including sorting and distribution centres) and distribution.
Providing flexibility and scalability across an entire organization, the Cloud creates abundant opportunities to capitalize on new business lines such as ‘virtual
freight forwarding’, an online system that matches shipments with available transportation providers.
Cloud-based SaaS solutions for logistics companies allow for pay-per-use models that require low capital investment. This minimizes the risk and cost of
maintaining the IT infrastructure.
Detailed Analysis on Technological Trends will be Provided in Full Report
XX
XX
INTENSITY OF
COMPETITIVE RIVALRY
BARGAINING
XX
BARGAINING POWER OF POWER OF
CUSTOMERS (BUYERS) SUPPLIERS
XX
XX
4.9 SPOTLIGHT ON OTHER SEGMENTS, SUCH AS CEP, LAST MILE DELIVERY, COLD CHAIN
LOGISTICS
The logistics industry in Indonesia has experienced a significant growth in specialized shipping, especially in the cold-chain segment. Growing by 4-6 percent annually
before the COVID-19 pandemic, the cold-chain logistics was predicted to boost its annual growth to 8-10 percent by 2025 and become the 7th largest cold-chain
market globally in 2030, according to the Indonesian Logistics and Forwarders Association.
This growth rate is driven by the growing population of e-Commerce connoisseurs who currently tend to choose to shop online, including for their basic needs such as
food, beverages, and the like.
In addition, cold chain growth was also triggered by increased shipping activities for the pharmaceutical industry, agricultural commodities, and goods. The increase in
demand for frozen food and beverages and the rise of domestic franchises were also factors in themselves contributing to the growing cold chain industry in
Indonesia.
Furthermore, the increasing demand for perishable products and fast delivery has also contributed to express and cold chain logistics activities leading to the high
demand for warehousing facilities in Indonesia.
Some initiatives in partnering with private logistics players have been announced by several government departments in handling cold-chain logistics. The ministry of
maritime affairs and fisheries, for one, announced an initiative to collaborate with private players in the development of logistics infrastructure and transportation for
goods requiring cold-chain handling, such as edible fishery products.
Growing involvement in the government’s COVID-19 vaccination program by private cold-chain providers can also be highly anticipated. The minister of health
mentioned that a partnership with private cold-chain players was already planned to enhance the cold-chain capacity to accommodate 626 million vaccine doses as
the kick-off of the COVID-19 vaccination program boosted the demand for cold-chain capacity, in addition to the existing capacity that accommodates the other
national vaccination programs, such as for rubella and smallpox.
Detailed Analysis will be Provided in Full Report
28 SAMPLE - INDONESIA FREIGHT AND LOGISTICS MARKET (2021-2026)
4. MARKET INSIGHTS AND DYNAMICS
4.9 SPOTLIGHT ON OTHER SEGMENTS, SUCH AS CEP, LAST MILE DELIVERY, COLD CHAIN
LOGISTICS
The cold chain logistics market in Indonesia is now being worked on by several leading companies, including; Diamond Cold Storage, Kiat Ananda Cold Storage, MGM
Bosco, Dua Putera Perkasa, GAC Samudera, and Adib Cold Logistics.
The character of cold chain logistics in Indonesia is mostly Business to business (B2B), although the demand for business to customer (B2C) is quite a lot lately.
March 2021 - J&T Express collaborates with Trigana Air to launch an air freighter or special ATR type cargo aircraft to deliver
goods or packages. The aircraft with a capacity of 15 tons will deliver goods via air and is destined for the Sumatra region.
There are two routes to be addressed, namely Jakarta-Medan and Jakarta-Batam. This aircraft is also planned to operate at
least once a day. The launch of this air freighter aims to improve service. This is also to balance the courier business with the
e-commerce business that has been growing during the pandemic.
4.9 SPOTLIGHT ON OTHER SEGMENTS, SUCH AS CEP, LAST MILE DELIVERY, COLD CHAIN
LOGISTICS
June 2020 - National flag carrier Garuda Indonesia, through its logistics subsidiary PT Aerojasa Cargo, has launched an
app-based courier service to develop its cargo business amid weakened passenger demand. The app, called KirimAja,
will enable customers to order deliveries of goods, from fashion to electronic products, to cities that are listed as flight
destinations of the airline or its low-cost carrier subsidiary, Citilink. It will also serve deliveries in Greater Jakarta.
The COVID-19 pandemic has forced players in the market to be more adaptive and creative in accelerating the
development of new business opportunities in the new normal era, and the company has developed a logistics business
with KirimAja The app, which is available for download both on Apple and Android devices, also includes features such
as real-time tracking, tracing, reservation, booking management, payments via virtual accounts and delivery fee
checking.
The service is similar to the one offered by the flag carrier’s former logistics subsidiary, PT Garuda Tauberes Indonesia,
before the subsidiary was then merged with other subsidiaries following the state-owned enterprises minister’s order.
KirimAja will also involve delivery agents grouped under the company’s so-called Sohib KirimAja community
May 2021 - Lion Parcel courier company (PT Lion Express) recorded a growth of about 30% of transactions during the first quarter of 2021.
In the midst of a national economic slowdown, the company managed to record 30 percent increase in transactions in the first quarter of
2021. The increase in numbers was mainly supported by transactions from Lion Parcel agent partners. This is evidenced by the innovation of
Lion Parcel products that always prioritize the needs of the community, such as the SIKAT program (Half a Kilo Savings) and BIGPACK special
delivery over 10 kilograms, both of which were launched at the beginning of Ramadan and made based on the needs of the community. In
addition, transactions from the Lion Parcel application which continued to increase also contributed to the increase in this first quarter. Until
the first quarter of 2021, Lion Parcel transactions via the application have increased by 155 percent compared to the year 2020.
30 SAMPLE - INDONESIA FREIGHT AND LOGISTICS MARKET (2021-2026)
4. MARKET INSIGHTS AND DYNAMICS
The Indonesian Logistics Association (ALI) assessed that logistics volumes were down 60 to 70 percent across the board from before the onset of COVID-19. But
logistics firms that catered to e-commerce fulfillment and shipping saw up to a 40 percent increase in business in 2020, and their growth continued into the first
quarter of 2021. Logistics firms that focus on other industries, such as electronics and automotive equipment, however, have not seen a rebound.
The sector overall remains in a contraction. Indonesian e-commerce grew nearly 65 percent last year as 85 million people in the country began shopping online. In
response to the increase in demand, e-commerce players tapped into in-house delivery solutions.
The rapid adoption of online shopping has enticed investors to pour funds into logistics start-ups. There were at least eight rounds of funding for Indonesian logistics
start-ups last year, totaling more than USD 182 million. Most of the funding has been given to early-stage firms, showing investors' confidence that such companies
will take off.
New investments were also made in both third-party logistics (3PL) companies and fourth-party logistics (4PL) companies. Companies in the 3PL segment allow
businesses to outsource parts of their supply chain, such as warehousing, order fulfillment and delivery to end-consumers, while 4PL players manage all aspects of the
supply chain with their own assets but can also aggregate 3PL players into their services.
Most of the funding has been given to early-stage firms, showing investors' confidence that such companies will take off. New investments were also made in both
third-party logistics (3PL) companies and fourth-party logistics (4PL) companies.
The COVID-19 pandemic which has been running for almost a year has disrupted all industries in Indonesia, including the logistics industry . Business actors must also
take quick steps to adapt to survive the pandemic.
Disruption in the logistics industry itself can be seen in the reduced cargo loading from trailers and containers. This can occur due to transportation restrictions and
companies having to enforce higher security. As a result, disrupted supply chains have resulted in a decrease in container volumes in various regions.
When analyzing the Indonesian logistics companies, at present, some companies are still in the recovery stage and some are still in the survival stage.
However, regardless of where the logistics company is at the moment, the fact is that people's consumption patterns have changed from offline to online. So, this must
be anticipated by logistics industry players. Because future trends will refer to staying in the home economy or online shopping patterns, starting from shopping for
groceries, food delivery services, telecommunications, and others.
Logistics has an important role in the current pandemic conditions. Experts say this is the importance of industry players having to innovate as soon as possible.
Because in fact, the demand for certain goods that want to be distributed still exists, what changes is how to access them.
In response to the pandemic and changing consumer habits, experts agreed that the digitization process had to be carried out so that the companies could keep up
with the changing trends in public consumption.
For instance, Cikarang Dry Port itself is already walking in that direction, and according to experts, this is already in the right advancement. It should be noted,
Cikarang Dry Port is a subsidiary of the Jababeka Group located in Kota Jababeka Cikarang with the aim of facilitating the logistical needs of industrial tenants for
export-import logistics.
Most businesses in the halal logistics sector experienced a negative impact due to the COVID-19 pandemic in the fourth quarter of 2020.
Based on a survey by Bank Indonesia (BI), as many as 75% of businesses in the halal logistics sector admitted to having experienced the negative impact of the
pandemic. The biggest negative impact is decreased demand and decreased sales turnover, as well as loss of consumers and disruption of the distribution process.
Although the majority of respondents experienced negative impacts, 60% of respondents admitted that they did not reduce employees.
On the other hand, it was noted that as many as 15% of business actors in the halal logistics sector claimed not to have been affected by the pandemic. In fact, as
many as 10% of business actors have even received a positive impact from the pandemic.
The Indonesian Truck Entrepreneurs Association (Aptrindo) said it was experiencing a contraction with only about 40% of the fleet of around 43,000 trucks operating
during the pandemic. Aptrindo's Central Executive Board assessed that this has also reduced turnover by 90%, which made it difficult for several companies to pay for
truck loans.
Before the pandemic, or to be precise in 2019, sales of the truck fleet itself increased by 7% or as many as 93,594 units Not only that, the market potential for logistics
services also grew by 15.29% and the realization of investment in goods transportation reached a value of IDR 139 trillion in 2019.
After the pandemic, the manufacturing industry took a hit and trucking industry was affected. Manufacturing is the main consumer of truck logistics, and it
experienced the same contraction of around 50% until the second quarter of 2020.
With current conditions, trucking logistic companies are trying to go digital so that businesses can survive and compete in the future. Meanwhile, in 2021, the
businesses that have been carried out are expected to be able to run 60% to 70%.
5.1.1.1 Road
5.1.1.2 Shipping
5.1.1.3 Air
5.1.1.4 Rail
5.1.3 Warehousing
Function 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 CAGR (%)
xx
Freight Transport XX XX XX XX XX XX XX XX XX XX XX
xx Freight Forwarding XX XX XX XX XX XX XX XX XX XX XX
Warehousing XX XX XX XX XX XX XX XX XX XX XX
xx
Value-added Services and
XX XX XX XX XX XX XX XX XX XX XX
xx Other Services
Freight Transport
Freight Forwarding
Warehousing
Value-added Services and Other Services
Road XX XX XX XX XX XX XX XX XX XX XX
xx xx
Rail XX XX XX XX XX XX XX XX XX XX XX
Air XX XX XX XX XX XX XX XX XX XX XX
xx
Sea & Inland XX XX XX XX XX XX XX XX XX XX XX
xx
5.1.1.1 ROAD
The road segment of the Indonesian freight and logistics market was
FREIGHT AND LOGISTICS MARKET
Revenue in USD billion, Road, Indonesia, 2017-2026 valued at USD XX billion in 2020, and it is expected to reach USD XX billion
by 2026, registering a growth rate of xx% during the forecast period.
XX%
CAGR
The trucking service business opportunity in Indonesia is considered to
have the potential to continue to grow along with changes in lifestyle,
economic growth, and geographical conditions. As a result, the market for
commercial vehicles ranging from light to heavy trucks in the country is
still promising.
With a population of around 270 million people or approximately 40% of
the total population of the Southeast Asian region (ASEAN) plus 5%
economic growth (before the corona virus crisis), Indonesia has a high level
of consumption.
Moreover, geographically, since the distribution of residential centers is far
apart, the distribution process is still very much needed. This given, the
distribution and logistics business, especially trucking, has enormous
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 potential in the country.
5.1.1.1 ROAD
The potential for the trucking market or trucking services also comes from export and import forwarding activities as well as shipping. It is believed that productive
activities will continue to grow because external trade activities will continue to be sustainable.
One of the businesses that has the potential to spark demand for trucking services is the proliferation of minimarkets, followed by the construction of distribution
centers, likewise with the e-commerce business that has penetrated various parts of the country.
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.
However, the limited number of vehicles becomes an obstacle so that overload in transportation of goods (Over Dimension and Over Load "ODOL") is always a solution
to overcome the limitations of vehicle loads.
As reported in December 2020, the Ministry of Transportation (Kemenhub) has revealed a series of negative impacts of the milling of overloaded trucks or over
dimension overload (ODOL) trucks on the roads. One of them affects the competitiveness of the national logistics industry.
The Director of Road Transportation Infrastructure at the Ministry of Transportation said that ODOL trucks cannot enter the ASEAN Free Trade Area (AFTA), and hence,
reduce international competitiveness because they cannot pass through state border crossings ( PLBN ). ODOL vehicle can also shorten the life of the vehicle and cause
excessive air pollution.
Further, in order to reduce physical damage to roads, the government, through the Ministry of Transportation, plans to implement an Indonesia policy of free vehicles
with over-dimension and overloading (ODOL) loads in 2023, with the hope that this policy will not erode industrial competitiveness.
5.1.1.1 ROAD
The Ministry of Transportation (Kemhub) through the Directorate General of Land Transportation (Ditjen
Hubdat) continues to encourage Indonesia to be free of vehicles with overloading (over dimension and
overloading or / ODOL) by 2023. This policy was issued following the emergence of various problems such as
traffic accidents, damage to infrastructure roads, bridges and ports, and high infrastructure maintenance costs.
Moreover, a number of industries expressed their unpreparedness to implement zero ODOL by 2023 and hoped
to postpone it until 2025. This is considering the difficult situation experienced by all industries that have been
hit as a result of the COVID-19 pandemic. Therefore, a transition time is needed so that the industry needs to
prepare new types of trucks that will be considered as additional investment.
The cement industry is one that will be affected by the application of this zero ODOL. As of December 2020, the
Indonesian Cement Association (ASI) reported that according to calculations, there would be an increase in
logistics costs by 50% to 60%. That will be caused by the impact of implementing zero ODOL from the overload
side, not the over-dimension.
Another impact that follows is the increase in selling prices to consumers. This is certainly not in accordance
with the objectives of the Job Creation Law, which wants to boost investment by reducing logistics costs, which
currently have a ratio of 24% to the country’s GDP (as reported in December 2020. With the application of zero
ODOL it will rise again. So it is counterproductive to President Joko Widodo's (Jokowi) plan to reduce logistics
costs to GDP.
5.1.1.1 ROAD
The additional fleet due to zero ODOL was quite significant. With zero ODOL, the average load reduction is
about 80%. This condition requires quite a lot of additional fleets and fleet providers requiring invest in large
amounts followed by the addition of drivers as well.
Given this, as reported in April 2021, automotive manufacturers are presenting trucks with more load axles to
keep them large and free from the risk of ODOL regulations. PT Hino Motors Sales Indonesia (HMSI) released
the Hino Ranger FLX 260 JW (8 × 2) medium duty truck at the Hino Total Support Center, Jatake.
This truck has a length of 11,950 mm with a wheelbase of 1,850 + 3,880 + 1,350 millimeters and a 32 ton
GVW equipped with a full air braking system for more gripping braking. This truck is equipped with a rear
camera to help the driver see conditions at the rear when backing through the rear-view mirror in the cabin
and is also equipped with additional side under mirrors to overcome blind spots.
The COVID-19 pandemic devastated the performance of the freight transportation business by land. As
reported by the industry experts, the decrease in turnover was up to 90%.
The Indonesian Truck Entrepreneurs Association (Aptrindo) in the third quarter of 2020 said that it
experienced a sharp contraction because only about 40% of the fleet of around 43,000 trucks operating
during the pandemic.
5.1.1.1 ROAD
Aptrindo is working on collaborating with warehousing platforms, transportation, implementing a limited single stakeholder profile, expanding the application of
Integrated Single Risk Management (ISRM), to Inaportnet collaboration into the Indonesia National Single Window (INSW) portal, which is also being worked on by the
Ministry of Transportation.
The transportation and warehousing industry asked the government and state-owned companies to provide incentives to support the current industry. The incentives
provided can sustain the growth of the storage industry for 2021. The Indonesian Truck Entrepreneurs Association (Aptrindo), together with the Indonesian Logistics
and Forwarders Association (ALFI), was working together to modify transport trucks as a saving measure.
Digitalization through the national logistics ecosystem (ecolognas) is expected to be a truck utilization solution. The target is that by 2021, 70% of trucking is
connected, 2022 is 100%. This is a roadmap for digitization in the field of land transportation.
As reported in November 2020, the Indonesian Truck Entrepreneurs Association (Aptrindo) conveyed several recommendations for the development of the Patimban
Port located in Subang, West Java. One of them is the creation of a special route for trucks carrying goods or logistics trucks to and from the port. This is considered
important to reduce congestion on the port access toll road.
The special lane provision can later be integrated with the use of available toll roads connected to industrial estates. That way, access to and from the Patimban port
can free overcrowding and increase the productivity of logistics companies.
Aptrindo also recommended that Patimban port activities not only focus on the automotive industry but also other industries, considering that the industry in West
Java and the path through which Patimban access goes are not only the automotive industry.
5.1.1.1 ROAD
GROSS DOMESTIC PRODUCT AT CURRENT MARKET PRICES FROM LAND ANNUAL NUMBER OF TRUCKS
TRANSPORT In units, Indonesia, 2014-2019
Value in in trillion Indonesian rupiah, Indonesia, 2014-2019
2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019
SOURCE: xx SOURCE: xx
Note: Complete data will be enclosed in full report
42 SAMPLE - INDONESIA FREIGHT AND LOGISTICS MARKET (2021-2026)
5. MARKET SEGMENTATION | 5.1 BY FUNCTION | 5.1.1 BY FREIGHT TRANSPORT
5.1.1.2 SHIPPING
FREIGHT AND LOGISTICS MARKET The shipping segment of the Indonesian freight and logistics market
Revenue in USD billion, Shipping, Indonesia, 2017-2026 was valued at USD xx billion in 2020, and it is expected to reach USD xx
xx% billion by 2026, registering a growth rate of xx% during the forecast
CAGR period.
During the adaptation period for new habits facing the COVID-19
pandemic, the Ministry of Transportation continues to implement one
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 of the marine transportation programs in knitting diversity, by creating
economic equality and equity, namely the Sea Highway.
5.1.1.2 SHIPPING
Chairman of the DPP Indonesian Logistics and Forwarder Association (ALFI) Yukki Nugrahawan Hanafi, emphasized that port costs in Indonesia must be more efficient
in accordance with the commodities handled. The port must also be a more effective gateway to the economy and provide added value to goods sent through the port.
The Sea Toll Program was from 2015 to 2020 and has operated 26 sea toll freight routes, 110 pioneer shipping routes, and 6 livestock ship routes.
As stated by the Minister of Transportation, one of the programs related to efforts to increase connectivity between regions in Indonesia for economic equality is the
Sea Highway. The Sea Toll Program has contributed and benefited in reducing price disparities, especially in the Eastern Region of Indonesia as well as increasing
economic equality throughout Indonesia.
The government, through the Directorate General of Sea Transportation of the Ministry of Transportation, continues to strive to connect/build connectivity in the Eastern
Indonesia region, especially in outermost, remote, underdeveloped areas, and it hoped that economic growth can be evenly distributed.
In accordance with the strategic issue of marine transportation for 2020-2024, the Ministry of Transportation will focus on preparing facilities and infrastructure to
support logistical connectivity, then carry out integration and equity so that all parts of Indonesia can enjoy accessibility by sea.
Starting from ports, to date there are a total of 636 ports consisting of 28 main ports, 164 collection ports, 166 regional feeder ports, and 278 local feeder ports. Then,
there are 1,321 port location plans with 55 terminals that are part of public ports. The government is promoting connectivity between ports and industrial networks. The
ports will be developed to be bigger so that large cargo ships can dock.
Sea Highway
Sea highway is the provision of a logistics distribution system using large ships that connect ports on main routes or main routes. The main sea toll routes are
Nanggroe Aceh Darussalam, Jakarta, Surabaya, Nusa Tenggara, Maluku, to Papua. Meanwhile, the distribution to other islands uses smaller ships compared to
the fleets on the main route.
5.1.1.2 SHIPPING
SOURCE: UNCTAD Stats Note: Complete data will be enclosed in full report
5.2.4 Construction
Manufacturing (including
XX XX XX XX XX XX XX XX XX XX XX
Automotive)
Construction XX XX XX XX XX XX XX XX XX XX XX
FREIGHT AND LOGISTICS MARKET The manufacturing segment of the Indonesian freight and logistics market
Revenue in USD billion, Manufacturing (including Automotive), Indonesia, was valued at USD XX billion in 2020, and it is expected to reach USD XX
2017 - 2026
billion by 2026, registering a CAGR of XX% during the forecast period of
XX%
2021-2026.
CAGR
In 2020, Indonesia’s manufacturing activity rose to its highest level since July
2014, as the sector continued its gradual recovery from the pandemic-
induced downturn for four consecutive months, although domestic demand
is expected to remain slow and extended restrictions still pose risks going
forward.
◼ In February 2021, US electric vehicle maker Tesla proposed joining Indonesia's plans to create an EV battery supply
chain within the country. Indonesia accounts for 23% of global nickel reserves, the world’s biggest.
◼ Nickel is a key material in EV batteries, and the government is hoping the reserves, along with investments from
the world's leading battery and chemical companies, can help position the country as a key player in the global
electric vehicle market. The government is also keen to make the archipelago a hub for production of electric
vehicles.
◼ Factory activity hit another record high in April 2021, with Indonesian businesses benefiting from easing of supply chain disruptions and an uptick in global
trade.
◼ Growth in the manufacturing sector is expected to boost the demand for express delivery and logistics services. The express deliveries of industrial products
are vital in avoiding stock shortages. The government has ambitious plans to propel the country into the top ten biggest economies in the world by 2030,
with manufacturing at the heart of this goal.
◼ The Indonesian automotive industry has become an important pillar of the country’s manufacturing sector, as many of the world’s well-known car
corporations have reopened manufacturing plants or expanded production capacity.
6.2.19 DB Schenker
6.2.1 PT SAMUDERA
◼ The company operates through three business segments: Shipping and Agency, Logistics and Founded in 1964
◼ The company also offers a range of shipping agency services, such as inland transport,
(021) 5480088, 5347210, 5304185, 5494993
container depot, warehouse, and feeder transportation for both domestic and international
routes and terminals.
PT SAMUDERA INDONESIA
Revenue in USD million, 2017-2020
USD 490.83 USD 66.22
40
million Revenue million Gross
Business Units
(2020) Profit (2020)
USD 574.14
4100
million Total
Employees
Assets (2020) 2017 2018 2019 2020
1.86%
16.29%
3.64%
25.05%
2.15%
48.25%
33.31%
76.65%
Indonesia South east Asia (except indonesia) Shipping and Logistics Logistic and terminal
Others Elimination
Middle east and India Others
6.2.1 PT SAMUDERA
Samudera Shipping Samudera Terminal
The company has over 50 years of experience in the shipping industry, Samudera Terminal caters to the business needs for containers and
including container, dry bulk, liquid, gas shipping, offshore support, and multipurpose terminal management, and it is a provider of port equipment
ship management services. and maintenance.
PT Cumawis
6.2.1 PT SAMUDERA
Samudera Logistics Samudera Agencies
Samudera Logistics provides integrated goods delivery services of various nature, This business line is the forerunner of Samudera Indonesia establishment
sizes, and modes of transport to final destinations. The company has built up a and was founded back in 1953. The company’s agency business is now
variety of logistics and supporting facilities to sustain integrated services. known as Samudera Agencies.
PT Silkargo Indonesia
6.2.1 PT SAMUDERA
PT Samudera Perdana: Founded in 1975, the group is engaged in the business of transportation of goods on land for general cargo and project cargo. The group
has six types of land transportation services for container cargo, bulk cargo, container repositioning, cargo distribution, project cargo transportation, and port
transportation and it is operating in several regions in Indonesia. The group offers trucking services between cities and between provinces throughout Indonesia.
In containerized cargo transportation, the company provides inland transportation for both import-export and inter-island containerized cargo with main route from
ports to designated warehouses or factories, which belong to cargo owners.
PT Taraka Jaya Samudera: It was established in 2013 to increase the company's penetration in response to the growing need for land transportation services in
Indonesia. In managing its business, the company focuses its activities on providing land transportation services for the project cargo and heavy machinery segment.
PT Samudera Banten Logistik: The company, which was established in 2016, provides logistical services, such as inland trucking, cargo loading, custom clearance,
stuffing, packing, and palleting.
In 2017, Samudera Indonesia acquired Adib Cold Logistics (ACL) through its joint venture, Samudera JWD Logistics. ACL has 8,000 square meter of total land area and
5,000 square meter of building facility. This subsidiary offers cold logistics services, including refrigerated storage and transport.
TARAKAN DUMAI
SURABAYA CIREBON
SEMARANG CILEGON
SAMARINDA CIKAMPEK
PONTIANAK BEKASI
PEKANBARU BATAM
PALEMBANG BANJARMASIN
PALARAN BANDUNG
PADANG BANDAR
LAMPUNG
MEDAN
BALIKPAPAN
MAKASSAR
JEMBER
JAMBI
JAKARTA
6.2.1 PT SAMUDERA
MAY Samudera Indonesia together with the Agency for the MARCH
2021 2021
Assessment and Application of Technology (BPPT) and the
Sepuluh Nopember Institute of Technology (ITS) collaborated
for LNG ship innovation research. The focus of this ship
building is to achieve competitive and affordable distribution
costs so that in the end alternative energy such as LNG can be
utilized by people in remote areas of Indonesia,
61
8. FUTURE OF THE MARKET
The logistics sector in Indonesia is expected to grow in future with a dip in 2020 due to lockdown for few months that disrupted the Imports and Export
Movements by all Modes which is expected to revive back in 2021. Tech startups are filling the gap and capturing new business opportunities. Several key
technologies deployed by logistics startups include radio frequency identification (RFID), GPS, cloud computing, and data analytics.
New concepts such as micro-warehousing as done by Crewdible and cross-border e-commerce fulfilment AllSome are gaining popularity in Indonesian market.
The pharma logistics segment and the e-commerce logistics segment are expected to drive growth in the future, given the expected increase in medical products
requirements post COVID-19 and continuous funding in Express companies such as SiCepat Ekspres and Aggregator such as Kargo in Indonesia.
The population of freight trucks is expected to grow to 50% every year in the next few years. The growth was due to the support of the improvement of toll road
infrastructure and the expansion of factories of large companies. The performance of these business services will be even greater if inter-modal synergies, namely
cooperation between trucking service companies and ship and railroad transportation companies, also occur, because the process of shipping goods will reach a
wider area between regions and islands.
However, government policy support is needed to facilitate truck transport mobility, so that the intensity and volume of trips also increase. Among the policies
needed is monitoring the weighbridge, which is placed directly at the entrance and exit of the industrial area, given the flow of traffic in and out of trucks in
places.
The development of the manufacturing sector is led by the Making Indonesia 4.0 initiative which aims to integrate advanced technologies including artificial
intelligence and the Internet of Things into supply chain and logistics operations to increase efficiency.
Processing Industry XX XX XX
Construction XX XX XX
Source: Central Bureau of Statistics, BPS – Statistics Indonesia Note: Complete data will be enclosed in full report
64 SAMPLE - INDONESIA FREIGHT AND LOGISTICS MARKET (2021-2026)
9. APPENDIX
Basic Metal Industry, Metal Goods, Electricity, Gas and Water Transportation, Warehouse and Housing, Industrial Estates and Offices Chemical and Pharmaceutical Industry
Non-Machinery and Its Equipment Telecommunication
Source: Statista
Note: Complete data will be enclosed in full report
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