Indonesia Logistics Market to Boom

The Government has pledged to reduce the dwelling time at major ports such as the Jakarta International Container Terminal Port in Tanjung Priok, Jakarta and Tanjung Perak Port in East Java with establishment of an Indonesia National Single Window (INSW) system and logistic bounded areas to reduce tariffs. Under Maritime Highway Program, government has established Kuala Tanjung and Bitung ports as international hubs and begun to run scheduled ocean freighters on six routes connecting major cities to remote areas. Indonesia Government opened the retail and wholesale sectors to 100% foreign ownership in 2016 along with 34 more sectors but with a higher Income tax Rate. Due to COVID, People prefer online purchases more than Physical visit to the stores making E commerce and online retailing quite popular in Indonesia. For some sellers, the sales have been more than doubled especially for health and personal hygiene products.

Technologies such as GPS tracking, RFID Tags and control towers are being quite popular in Indonesia and are used by companies with additional costs as per the Client requirements. Other upcoming technologies include real time fuel management system, Platooning, ASRS, warehousing management system, cargo management systems and communication and information systems such as EDI which can be used to reduce paperwork and minimize time taken for compliance procedures.

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