JAKARTA. The logistics market in Indonesia grew significantly in a five-year period (2013 to 2018) by 45.95% to US$ 55.9 billion, thanks to a number of infrastructure projects developed by the Indonesian government.
Handiman Soetoyo, analyst at Mirae Asset Sekuritas, said that the contribution of the logistics market to Indonesia's Gross Domestic Product (GDP) in 2018 reached 5.5%. This makes Indonesia one of the countries with the largest logistics market in ASEAN.
In his research, Soetoyo mentioned that the company was supported by the National Medium-Term Development Plan (RPJMN) from 2015 to 2018, which focused on infrastructure. In 2020 to 2024, the government will still prioritize infrastructure development, especially in eastern Indonesia.
"Seeing what the government has achieved in the previous projects, we believe that infrastructure will improve Indonesia's logistics competitiveness," explained Soetoyo.
In addition, the Indonesian logistics market was also supported by e-commerce growth and Presidential Regulation No. 44 of 2019 concerning the elimination of the negative investment list. (KR/AR)