• Logistics in Indonesia is Supported by E-commerce

    Indonesia’s logistics service sector is predicted to continue to grow until the end of 2017. Growth is also felt for the perpetrators of Third Party Logistics (3PL) in Indonesia.

    Yukki Nugrahawan Hanafi, Chairman of the Indonesian Logistics and Forwaders Association (ALFI) predicts that by the end of 2017, transaction turnover in contract logistic services will be worth US $ 3.7 billion.

    That is, in Compound Annual Growth Rate (CAGR), the achievement grew by 11% for the period 2013-2017.

    Indeed, Yukki said, the development of domestic logistics on basic needs is stable only. “The current trend of society does not keep excessive stock so as according to need only,” he explained to Kontan.co.id, Friday (22/9).

    Predicted growth, is not recognized because Yukki rapid growth of e-commerce in Indonesia. The increase in orders affects the flow of distribution from ALFI members of 3,212 engaged in logistics services.

    “Finally logistics is part of the supply chain and customers now want to be fast-paced, especially to serve modern models of commerce or e-commerce,” Yukki added.

    Therefore, Yukki also predicts that the Express and Small Parcel sectors for the domestic market will reach US $ 6.75 billion by the end of 2017. This amount is far greater than for international service which is predicted to be only US $ 806 million.

    ———
    Sources: http://industri.kontan.co.id/news/logistik-di-indonesia-ditopang-e-commerce
    Translated by Aryputra Pande

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