Welcome!

Java Authors: Carmen Gonzalez, Elizabeth White, Liz McMillan, Jim Kaskade, Pat Romanski

News Feed Item

Frost & Sullivan Predicts Indonesia Logistics Industry to Grow 14.5% year-on-year in 2013

JAKARTA, Indonesia, April 11, 2013 /PRNewswire/ -- Frost & Sullivan is forecasting the Indonesian logistics industry to grow 14.5 per cent to IDR 1,634 trillion in 2013 as compared to an estimated IDR 1,427 trillion a year ago, fuelled by the Government's initiatives and development of the logistics industry and strong economic growth.

Mr. Gopal R, Global Vice President, Transportation & Logistics Practice at Frost & Sullivan said that the relocation and strong flows of capital are also expected to drive manufacturing activities in Indonesia and boost logistics demand.

He added that external trade for Indonesia is expected to see a moderate growth of 16.7 per cent to reach US$446 billion in 2013.

"Import/export forwarding, shipping and airfreight related businesses will benefit from sustainable growth of external trade activities," he said.

Mr. Gopal said that the growth of foreign direct investment (FDI) is expected to continue in 2013, with an estimated value of US$42.7 billion. He added that FDI realization in transport & storage sector reached US$ 2.8 billion in 2012, which was the second largest share out of overall FDI, after mining sector around US$ 4.3 billion. He also said that the strong FDI flow into the mining industry will continue to boost the industrial growth and offer business potential to transportation & logistics industry.

He predicts the transportation & logistics market in Indonesia to grow at a compound annual growth rate (CAGR) of 14.8 per cent for the forecast period 2013 to 2017. "However, underdeveloped infrastructure will slow down the growth if the bottleneck persists in the coming years," he said.

Mr. Gopal said that the result of poor connectivity, process and weak infrastructure is evident in many price differentials and transport problems in Indonesia.

He added that trade facilitation is still mainly 'paper-based systems', which increases the cost of logistics in addition to reduced efficiency. Other bottlenecks in the Indonesia transportation and logistics industry include goods to be exported leaving the ports too late and consequently do not reach the regional transshipment ports on time. He added that ships destined for local destinations are also frequently delayed.

'The Indonesian logistics market is highly fragmented with abundance of small to mid size companies in the market, even the big players are facing stiff competition from these companies," Mr. Gopal said. He added that the fragmented market pushes smaller logistics service providers to go for economic pricing strategy rather than focusing on service quality and breadth of services offered.

Freight movement in Indonesia

Mr. Gopal forecasts Indonesia's total ocean cargo volumes to increase 6.1 per cent to 1 billion tons in 2013 as compared to 943.1 million tons in 2012. He added that seaports handle more than 90 per cent of total non-road freight traffic in Indonesia.

He also said that the shipping industry could be affected by further global slowdown especially from the Euro zone crisis and decreasing demand from China. "However, it is expected to maintain a steady growth driven by the strong domestic demand and the availibility of new vessels particularly for oil and coal industries," he added.

Mr. Gopal said that cargo volume by rail is expected to increase 8 per cent to 25.5 million tons in 2013 as compared to 23.6 million tons in 2012. "The Government's plan accelerating the construction of the double track between Jakarta-Surabaya in Java and adding railway cars and locomotives in Java - Sumatera tracks will likely push the amount of freight transport capacity up to threefold along with reduction of burden on road as well as cutting down logistics cost and time," he added.

He expects airfreight volume to rise 19.6 per cent to reach 1.16 million tons from 970,000 tons in 2012. "There's significant potential for air cargo from seasonal perishables as well as time sensitive and high value components and equipment," he added.

Mr. Gopal also said that Soekarno Hatta Airport contributed approximately 36.7 percent of the total air cargo volume in the country.

Key industry trends

Mr. Gopal said that there is a higher inclination towards outsourcing a variety of value added services in the Indonesian market. He added that logistics service providers need to work toward more value-added services while strengthening the intermediate services.

He said that logistics end users are also moving towards integrated supply chains with professional service providers. He added that Indonesia is determined to become an important player in international trade & markets. The government focuses particularly on 6 key areas with the objectives of ensuring the availability of strategic commodities, promoting low cost economic activities and strengthening national competitiveness.

Mr. Gopal said that the ASEAN Economic Community (AEC) in 2015 will amplify the export value to ASEAN countries.

Moving Forward

Mr. Gopal said that logistics service providers in Indonesia should move towards offering specialized logistics solutions for specific industries such as FMCG, construction, service parts and mining as compared to the current basic logistics services with common value-added services.

He added that a logistics network of industrial centers should be developed on the outskirts of Jakarta for improved access to the Port of Tanjung Priok as the current high traffic congestion in Jakarta resulted in a longer lead time, shipment delay and an inefficient supply chain.

The Indonesia Government should also integrate transportation hubs – seaports, airports, terminals and distribution centers – with the transport network and develop state-of-the art logistics infrastructure for efficient distribution.

"Companies should also strengthen its human resources capabilities with professional and experienced logistics personnel along with market expansion," Mr. Gopal said.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.  
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible.  This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.  

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us: Start the discussion

Join Us: Join our community

Subscribe: Newsletter on "the next big thing"

Register: Gain access to visionary innovation

Media Contacts:
Dewi Nuraini
Sr. Corporate Communications - Indonesia
Phone : +62 21 571 0838
Mobile : +62856 7800 792
BB Pin : 25886C1C
Email : [email protected]

http://www.facebook.com/FrostandSullivan/

http://www.linkedin.com/companies/4506

http://www.slideshare.net/FrostandSullivan

http://twitter.com/frost_sullivan

http://twitter.com/FROST_ID

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo – to be held June 9-11, 2015, at the Javits Center in New York City, NY – is now accepting Hackathon proposals. Hackathon sponsorship benefits include general brand exposure and increasing engagement with the developer ecosystem. At Cloud Expo 2014 Silicon Valley, IBM held the Bluemix Developer Playground on November 5 and ElasticBox held the DevOps Hackathon on November 6. Both events took place on the expo floor. The Bluemix Developer Playground, for developers of all levels, highlighted the ease of use of...
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
There's Big Data, then there's really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at Big Data Expo®, Hannah Smalltree, Director at Treasure Data, discussed how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...