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Jakarta Post

Logistics companies struggle to realize growth potential

  • Rachmadea Aisyah

    The Jakarta Post

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Jakarta   /   Tue, May 7, 2019   /  03:11 pm
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GrabExpress provides fast package deliveries across the city. Tokopedia recently partnered with Grab to help deliver its vendors’ products to customers more efficiently. (./.)

Despite being a core factor of Indonesia’s flourishing e-commerce sector, logistic companies are still unable to meet the sharp growth of e-commerce businesses. As a result, online retailers still lack options for transporting their products, especially to outside Java. According to the Indonesian Logistics Association (ALI), the logistics sector is estimated to grow 12 percent this year, above the average growth of most business sectors, but it would be far below the growth of the e-commerce sector, which according to Bank Indonesia (BI), could be between 100 percent and 150 percent a year. ALI chairman Zaldy Ilham Masita said the e-commerce sector was not actually the biggest customer for logistics services as it made up only around 6 percent of the goods shipped by logistics companies. “Consumers used to only browse e-commerce platforms for fashion items and ...