The Indonesian logistics industry is set to grow by 14.5 percent in 2013 on the strength of government initiatives, increased manufacturing activities and a growing economy, according to analysts at Frost & Sullivan.
External trade could reach $446 billion this year, a 16.7 percent growth rate.
Foreign direct investment in Indonesia will grow to $42.7 billion, with a large amount of that going into the mining industry. This mining money will help boost industrial growth and, as a result, increase transportation activity across all modes.
Indonesia does, however, face a few challenges. Weak infrastructure, poor connectivity and the proliferation of paper-based processes resulting in reduced efficiency and increased costs. Focusing on the ports, ships routinely leave for their destinations behind schedule.
Meanwhile, the country’s rail volumes are expected to increase by 8 percent to 25.5 million tons and ocean cargo volumes will grow by 6.1 percent this year, finishing 2013 at 1 billon tons. Air freight carriers are the big winners, however, as Frost & Sullivan analysts predict a 19.6-percent rise in volumes to 1.16 million tons. – Jon Ross
Analyst: Indonesian logistics to grow 14.5% in 2013
