Overview of logistics in Indonesia. Sep 2015 updated data 2018 available upon request

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1 Overview of logistics in Indonesia Sep 2015 updated data 2018 available upon request 1

2 Overview of Indonesia logistics Logistics in the Indonesia GDP Companies specialized in transportation account for 4.2% of the total GDP 2014 Road transport accounts for more than 50% of transportation company revenues 2014 Logistic operators only excludes insources logistic expenditure Transportation and storage; 4,20% Railways transport; 0,9% Agriculture, Forest and Fishing; 14% Mining; 10,50% Construction; 10,50% Communication ; 3,20% Services to transport; 12,1% Water Transport; 8,90% Road transport; 52,0% Manufacturing; 23,70% Air Transport; 26,2% Other Services; 33,60% Total: Trn IDR Total: 425 Trn IDR Note: updated numbers 2018 available upon request 2

3 Overview of Indonesia logistics Size of hidden logistics in Indonesia The bulk of logistic spending is insources by the companies Manufacturing, agriculture and trade internalise over 50% logistic costs of the total Size of the logistic market 2014 Hidden logistic costs allocation by sector Construction 11% Communication 3% Mining 11% Agriculture 15% Manufacturing 25% Other Services 23% Trade 12% 0 Transport companies Internalized logistic costs Total tranpsort and logistic market Total: 1391 Trn IDR Note: updated numbers 2018 available upon request 3

4 Trn IDR Overview of Indonesia logistics Size and nature of logistics costs The incidence of logistic cost on GDP increased by 1% in the last 5 years The weight of 3LP on total logistic market is increasing Total logistics costs market size and % of GDP 25% 100% Share of 3PLs vs. In house logistic % 17% 19% 20% 20% 20% 22% 23% ,0% 17,0% 17,1% 17,3% 17,6% 18,0% 20% 80% % % 10% 60% 50% 40% 30% 83% 81% 80% 80% 80% 78% 77% 400 5% 20% % 10% 0% In house logistic 3PLs % of GDP 3PL In house logistic Note: updated numbers 2018 available upon request 4

5 Overview of CG logistics value chain Sectors linked to consumer goods logistic Energy and Power Communication Resources Construction and infrastructure Trade Agriculture Manufacturing Other services CONSUMER GOODS Consumer goods categories Furniture White goods House Electronics Dry Food Other Apparel and Tools House and personal care Pharmaceutical Fresh Food In scope DRY LOGISTIC COLD LOGISTIC 5

6 IDR Tn Overview of CG logistics value chain How much is Consumer Goods logistic market worth? There are no public data on market size of consumer goods logistics. This an approximate sizing of the overall B2B and C2C market specifically for consumer goods. Consumer Goods logistic market size Not related to CG freight logistics Freight CG logistics Total IDR 116 Tn ,0 7,6 100% 90% 0,5 7,6 4, ,4 0,5 4,8 80% 70% 21, ,1 27,5 15,0 21,0 60% 50% 40% ,0 30% 67, % 10% 0 Total Services Air Rail Sea Road Passenger Courier CG trucking Other 0% Truck Courier Air Sea Rail Note: updated numbers 2018 available upon request 6

7 Overview of CG logistics value chain Major logistic differentiations between customer goods GOODS SIZE IS THEY KEY VARIANT FOR DIFFERENT LOGISTICS Container Only (large goods) Palletisation and Container (medium to small goods) Special small delivery (luxury small goods) Furniture House Dry Food Tools Furniture Apparel and White goods Electronics Apparel and House and personal care White goods (e.g. jewellery, watches) Two main areas of analysis: Analysis of logistic value chain Difference in traditional logistic and ecommerce logistic SPECIALIZED HIGH VALUE PRODUCT CARRIER Focus of this document 7

8 Ecommerce logistics analysis Difference between ecommerce and traditional retail Producer B2B logistic usually long haul Pre ordered stock transported through traditional logistic channels Delivery completed in: 24 to 48h large cities 6-10 days in rural areas Ecommerce logistic Online purchase click Customer purchase Primary Warehouse Transportation to customer Pick up services Delivery Hub Retailers may have dedicated space in ecommerce logistic warehouse B2C Prepare the goods for transportation to warehouse if needed B2C C2C CUSTOMERS Traditional retail Producer Long haul Primary Warehouse Short haul Shop Customer purchase Weeks to months for ordering cycle to complete Immediate purchase 8

9 CONTACT US LTC Partners Asia Summitmas II, Ground Floor Jl. Jendral Surdirman Kav Jakarta Indonesia T F info@ltcpasia.com 9