Indonesia: Investments in Logistics Increase Despite Declining Financing

• May 18, 2017

TEMPO.CO, Jakarta – The decline in the logistic sector financing appears to have insignificant impacts on investments in infrastructure projects.

Indonesian Forwarder and Logistics Association (ALFI) chairman Yukki Nugrahawan Hanafi said that there is actually an increase in the realization of infrastructure developments.

“The optimization of and investment in the e-logistics sector are improving,” Yukki said as quoted by Bisnis.com on Thursday, May 18, 2017.

The investment is potentially caused by a rise in demands in the domestic logistics sector. Compared to the growth of the logistics sector in other ASEAN nations, Yukki went on, Indonesia is better. Yukki explained that other countries show a declining volatility. For instance, Singapore’s logistics contracts only stood at 7.3 percent, and those of Thailand and Philippine stood at 11.3 percent and 9.7 percent, respectively, in the period of 2013-2017. 

The high demands in the Indonesian market were thanks to the rise of the e-commerce business.

“This condition could indirectly reflect that the market paradigm of the logistics service market has started to shift to the domestic market,” Yukki said.

Source: https://en.tempo.co/read/news/2017/05/18/056876560/Investments-in-Logistics-Increase-Despite-Declining-Financing