JAKARTA INDONESIA (ISL News) - Supply Chain Indonesia (SCI) projects that the transportation and warehousing sector in 2025 will contribute to Indonesia's gross domestic product (GDP) by IDR 1,623.65 trillion or grow by 12.53% (c-to-c).
Based on analysis of data from the Central Statistics Agency (BPS), the transportation and warehousing sector continues to grow above the average growth rate of the Indonesian economy.
This sector grew by 19.87 percent in 2022; by 13.96 percent in 2023; and is projected to be around 9.52 percent in 2024. Meanwhile, Indonesia's GDP grew by 5.31 percent in 2022 and by 5.05 percent in 2023.
Although the transportation sub-sector includes freight and passenger transportation, the growth of this sector can illustrate the performance of the logistics sector, which has indeed grown significantly and consistently in the 2022-2024 period.
SCI projects that in 2025 the transportation sub-sector will contribute IDR 1,276.66 trillion or grow by 11.09% (c-to-c) and the warehousing sub-sector will contribute IDR 346.99 trillion or grow by 18.26% (c-to-c).
SCI CEO Setijadi explained that the growth of freight transportation and warehousing in 2025 will be driven primarily by the processing industry, trade, as well as agriculture, forestry, and fisheries.
In the non-oil and gas processing industry, the logistics potential in 2025 will be dominated by the food and beverage industry, followed by the chemical and pharmaceutical industry, metal and electronic goods industry, transportation equipment industry, basic metal industry, and textile and apparel industry.
Setijadi explained that the development of Indonesia's logistics sector was also influenced by the global situation, especially the US-China trade war, as well as the Russia-Ukraine and Middle East geopolitical conflicts, which had an impact on the uncertainty and dynamics of the global supply chain.
SCI Recommendations
SCI again conveyed several key recommendations for improving and developing national logistics for stakeholders.
First, the completion and publication of the revision of Presidential Decree 26/2012 concerning the Blueprint for the Development of the National Logistics System, the formation of a logistics law, and the establishment of a permanent institution in the logistics sector.
Second, improving end-to-end logistics connectivity as a continuation of massive infrastructure development in the two previous government periods.
Third, strengthening the national commodity supply chain by developing potential domestic commodities in various regions.
Fourth, continuation of the downstreaming program, not only for mining commodities, but also agricultural, plantation, fisheries, and other commodities.
Fifth, improving the competence of human resources, processes and technology, as well as the work network and collaboration of logistics service provider companies.
Some of these efforts will have an impact on increasing logistics efficiency which is important to support the achievement of national economic growth targets.
(ISL News Editorial Team/SCI Public Relations/email: islnewstv@gmail.com).
