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Indonesian logistics firms ride e-commerce boom to survive pandemic
Courier start-ups received more than US$182 million in funding last year as an e-commerce boom boosted parts of the logistics sector.
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A man works in a Shipper warehouse in Indonesia. (Courtesy of Shipper/-)
D
espite suffering a free fall in revenue in the early days of the pandemic, some logistics companies have managed to survive by taking advantage of a boom in online shopping brought about by government mobility restrictions.
The Indonesian Logistics Association (ALI) reported that logistics volumes were down 60 to 70 percent across the board from before the onset of COVID-19.
But logistics firms that catered to e-commerce fulfillment and shipping saw up to a 40 percent increase in business in 2020, and their growth continued into the first quarter of 2021.
“The situation is real, such as for fast moving consumer goods (FMCG) and pharmaceutical products, which have entered online channels,” ALI chairman Mahendra Riyanto told The Jakarta Post on Friday.
Logistics firms that focus on other industries, such as electronics and automotive equipment, however, have not seen a rebound. The sector overall remains in a contraction.
Read also: Logistics down by more than 50% amid pandemic
Indonesian e-commerce grew nearly 65 percent last year as 85 million people in the country began shopping online, according to management consulting firm Redseer. In response to the increase in demand, e-commerce players tapped into in-house delivery solutions.
