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Indonesia Freight and Logistics Market Size

The Indonesia Freight and Logistics Market is projected to experience significant growth, driven by strategic infrastructure developments and government initiatives aimed at enhancing the logistics ecosystem. The Indonesian government's comprehensive plan, which includes improving port efficiency and reducing logistics costs, is central to this expansion. Despite challenges posed by the pandemic, foreign direct investment in the transportation sector has remained robust, reflecting Indonesia's commitment to economic growth through international trade agreements. The completion of key infrastructure projects and the focus on maritime and air transportation enhancements are expected to further bolster the market's capacity and efficiency, aligning with the country's long-term vision for a strengthened domestic shipping industry.

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Market Size of indonesia freight and logistics Industry

Indonesia Freight and Logistics Market Summary
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svg icon Study Period 2017 - 2030
svg icon Market Size (2024) USD 122.2 Billion
svg icon Market Size (2030) USD 178.1 Billion
svg icon Largest Share by Logistics Function Freight Transport
svg icon CAGR (2024 - 2030) 6.48 %
svg icon Fastest Growing by Logistics Function Courier, Express, and Parcel (CEP)
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Indonesia Freight and Logistics Market Analysis

The Indonesia Freight and Logistics Market size is estimated at 122.2 billion USD in 2024, and is expected to reach 178.1 billion USD by 2030, growing at a CAGR of 6.48% during the forecast period (2024-2030).

122.2 Billion

Market Size in 2024 (USD)

178.1 Billion

Market Size in 2030 (USD)

5.63 %

CAGR (2017-2023)

6.48 %

CAGR (2024-2030)

Fastest Growing Market by Mode of Transport

8.25 %

Projected CAGR, Air, 2024-2030

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As of 2023, Indonesia had 251 existing airports. From 2020 to 2024, four new airports were completed and are now operational, supporting the growth of the air freight transport market.

Largest CEP Market by Destination

63.90 %

value share, Domestic, 2023

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E-commerce has been the key catalyst for the growth of the domestic CEP segment. The Indonesian e-commerce market grew from USD 43.3 billion in 2022 to USD 45.28 billion in 2023.

Largest Market by End User Industry

34.34 %

value share, Wholesale and Retail Trade, 2023

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Indonesia's retail market is one of the most promising in Asia, supported by an expanding middle class with better purchasing power. Retail sales grew 1.6% in Q4 2023, after growing by 1.4% in Q3 2023.

Largest Warehousing Market by Temperature Control

91.36 %

value share, Non-Temperature Controlled, 2023

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The expansion of the e-commerce industry and the increasing need for express services have been instrumental in driving the growth of non-temperature-controlled warehousing.

Fastest Growing Warehousing Market by Temperature Control

6.22 %

Projected CAGR, Temperature Controlled, 2024-2030

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The OTC pharmaceuticals market in Indonesia is expected to record a CAGR of 7.88% from 2024 to 2028, driving the demand for temperature-controlled warehousing.

Government investment in Indonesian infrastructure is anticipated to propel the market's growth

  • Infrastructure development has gained global traction in recent years. In line with this, the Indonesian government, under Presidential Instruction No. 5/2020, has devised a comprehensive plan to enhance the nation's logistics ecosystem. A key objective of this reform is to trim logistics costs from 24% to 17% of the GDP by 2024. A pivotal strategy in achieving this goal is bolstering port efficiency.
  • Despite the pandemic-induced slump in motor vehicle sales and production, FDI in Indonesia's vehicle and transportation sectors stood at USD 1,502 million in 2021, climbing further to USD 1,522 million in 2022. In a testament to its commitment to economic growth amidst the pandemic, Indonesia inked eight trade agreements in 2021. Notably, negotiations are underway for agreements such as the Indonesia-Chile FTA, Indonesia-EFTA FTA, Indonesia-South Korea FTA, Indonesia-US FTA, and Indonesia-EU FTA.
  • By Q1 2023, several infrastructure projects reached completion and commenced operations. The government, targeting 36 ferry ports by 2024, had already built 11. The maritime highway program, a key focus, witnessed ongoing optimization. Presently, 32 ships ply 32 routes, making stops at 114 ports, including those in Papua and West Papua. The government's sights are also set on enhancing air transportation infrastructure. It aims to construct 10 new airports, catering to 43 air routes, by the close of 2024. Looking ahead, the "Indonesia Emas" (Golden Indonesia) 2045 vision aspires to fortify the domestic shipping industry, aligning its capacity with optimal export-import dynamics.
Indonesia Freight and Logistics Market

Indonesia Freight and Logistics Industry Segmentation

Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Courier, Express, and Parcel (CEP), Freight Forwarding, Freight Transport, Warehousing and Storage are covered as segments by Logistics Function.

  • Infrastructure development has gained global traction in recent years. In line with this, the Indonesian government, under Presidential Instruction No. 5/2020, has devised a comprehensive plan to enhance the nation's logistics ecosystem. A key objective of this reform is to trim logistics costs from 24% to 17% of the GDP by 2024. A pivotal strategy in achieving this goal is bolstering port efficiency.
  • Despite the pandemic-induced slump in motor vehicle sales and production, FDI in Indonesia's vehicle and transportation sectors stood at USD 1,502 million in 2021, climbing further to USD 1,522 million in 2022. In a testament to its commitment to economic growth amidst the pandemic, Indonesia inked eight trade agreements in 2021. Notably, negotiations are underway for agreements such as the Indonesia-Chile FTA, Indonesia-EFTA FTA, Indonesia-South Korea FTA, Indonesia-US FTA, and Indonesia-EU FTA.
  • By Q1 2023, several infrastructure projects reached completion and commenced operations. The government, targeting 36 ferry ports by 2024, had already built 11. The maritime highway program, a key focus, witnessed ongoing optimization. Presently, 32 ships ply 32 routes, making stops at 114 ports, including those in Papua and West Papua. The government's sights are also set on enhancing air transportation infrastructure. It aims to construct 10 new airports, catering to 43 air routes, by the close of 2024. Looking ahead, the "Indonesia Emas" (Golden Indonesia) 2045 vision aspires to fortify the domestic shipping industry, aligning its capacity with optimal export-import dynamics.
End User Industry
Agriculture, Fishing, and Forestry
Construction
Manufacturing
Oil and Gas, Mining and Quarrying
Wholesale and Retail Trade
Others
Logistics Function
Courier, Express, and Parcel (CEP)
By Destination Type
Domestic
International
Freight Forwarding
By Mode Of Transport
Air
Sea and Inland Waterways
Others
Freight Transport
By Mode Of Transport
Air
Pipelines
Rail
Road
Sea and Inland Waterways
Warehousing and Storage
By Temperature Control
Non-Temperature Controlled
Temperature Controlled
Other Services
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Indonesia Freight and Logistics Market Size Summary

The Indonesia Freight and Logistics Market is poised for significant growth, driven by strategic infrastructure developments and government initiatives aimed at enhancing the logistics ecosystem. The Indonesian government has implemented comprehensive plans under Presidential Instruction No. 5/2020 to reduce logistics costs and improve port efficiency, aligning with its broader economic goals. Despite challenges such as the pandemic's impact on vehicle sales, foreign direct investment in the transportation sector has shown resilience, with Indonesia actively pursuing multiple trade agreements to bolster its economic ties. The country's infrastructure projects, including the maritime highway program and the construction of new airports, are integral to its vision of a robust logistics network, supporting the "Indonesia Emas" 2045 vision to optimize export-import dynamics.

The transportation and storage sector plays a crucial role in Indonesia's economy, facilitating the movement of goods and people across its vast archipelago. The sector has experienced remarkable growth, driven by increased community mobility and foreign tourist arrivals. Government investments in road infrastructure projects, particularly in preparation for the new capital city, underscore the focus on enhancing transportation capabilities. The market is characterized by fragmentation, with major players like DHL Group, Ninja Logistics, and others holding a modest share. Recent developments, such as acquisitions and the introduction of new freight services, highlight the ongoing efforts to strengthen international connectivity and improve logistics solutions. These initiatives are crucial for maintaining the sector's growth trajectory and meeting the rising demand for efficient freight and logistics services.

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Indonesia Freight and Logistics Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes 1. Market value in USD for all segments 2. Market volume for select segments viz. freight transport, CEP (courier, express, and parcel) and warehousing & storage 3.Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 End User Industry

      1. 1.1.1 Agriculture, Fishing, and Forestry

      2. 1.1.2 Construction

      3. 1.1.3 Manufacturing

      4. 1.1.4 Oil and Gas, Mining and Quarrying

      5. 1.1.5 Wholesale and Retail Trade

      6. 1.1.6 Others

    2. 1.2 Logistics Function

      1. 1.2.1 Courier, Express, and Parcel (CEP)

        1. 1.2.1.1 By Destination Type

          1. 1.2.1.1.1 Domestic

          2. 1.2.1.1.2 International

      2. 1.2.2 Freight Forwarding

        1. 1.2.2.1 By Mode Of Transport

          1. 1.2.2.1.1 Air

          2. 1.2.2.1.2 Sea and Inland Waterways

          3. 1.2.2.1.3 Others

      3. 1.2.3 Freight Transport

        1. 1.2.3.1 By Mode Of Transport

          1. 1.2.3.1.1 Air

          2. 1.2.3.1.2 Pipelines

          3. 1.2.3.1.3 Rail

          4. 1.2.3.1.4 Road

          5. 1.2.3.1.5 Sea and Inland Waterways

      4. 1.2.4 Warehousing and Storage

        1. 1.2.4.1 By Temperature Control

          1. 1.2.4.1.1 Non-Temperature Controlled

          2. 1.2.4.1.2 Temperature Controlled

      5. 1.2.5 Other Services

Indonesia Freight and Logistics Market Size FAQs

The Indonesia Freight and Logistics Market size is expected to reach USD 122.20 billion in 2024 and grow at a CAGR of 6.48% to reach USD 178.07 billion by 2030.

In 2024, the Indonesia Freight and Logistics Market size is expected to reach USD 122.20 billion.

Indonesia Freight & Logistics Market Report Snapshots

Indonesia Freight and Logistics Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030