Click here to close now.




















Welcome!

Java IoT Authors: Nicholas Lee, VictorOps Blog, Esmeralda Swartz, Liz McMillan, 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/pages/Frost-Sullivan/

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

http://www.slideshare.net/FrostandSullivan

http://twitter.com/frost_sullivan

http://twitter.com/FROST_ID

SOURCE Frost & Sullivan

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
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.