Indonesia’s Logistics Market Could Double or Triple in 2019
Indonesia’s logistics market may double or even triple in size by 2019 on the back of government funding for transport and infrastructure investment, according to a UK-based global logistics research firm.
Transport Intelligence recently published its ndings that the country’s shipping market would grow by up to 14.7 percent annually until 2019.
Contract logistic, which includes outsourced supply chains, warehousing, inventory and distribution,could also increase by the same amount annually over the period.
The combined domestic and international express logistic market could be worth 9.2 billion Euro by 2019 from 2.9 billion Euro now.
Indonesia’s low land and labor costs, huge domestic market and easy access to neighboring Asean (Association of Southeast Asian Nations) markets could make it a highly attractive location for manufacturers seeking alternatives to China in the near future.
Indonesia Launches Warehouse-Sharing Scheme to Cut Logistics Costs
Indonesia has launched a warehouse-sharing scheme aimed at improving competitiveness by reducing the cost of moving goods around the sprawling archipelago.
The scheme was inaugurated by President Joko Widodo, whose administration has announced a run of measures to revive the economy since September last year, including o ering incentives to rms to share warehouses situated in bonded zones.
"We want our logistic costs the same with our neighbor or at least near theirs. If we don't manage to do that, don't even dream of competing," said the President.
