Indonesia's Transportation and Warehousing Sector Shows Strong Growth

Significant Contribution to National GDP

Indonesia's transportation and warehousing sector is on track to make a substantial contribution to the country's Gross Domestic Product (GDP) by the end of 2025. According to Coordinating Minister for Economic Affairs Airlangga Hartarto, the sector is projected to contribute Rp1,500 trillion to national GDP, representing approximately 9% of the total GDP. This projection marks an increase from the previous year's contribution of 8.69% in 2024.

Strong Growth in Q3-2025

The sector demonstrated robust growth in the third quarter of 2025, expanding by 8.62%. This growth rate is higher than the previous quarter's 8.52% and surpasses the national economic growth rate. The transportation and warehousing sector was the sixth largest contributor to economic growth in Q3-2025, accounting for 6.1% of total growth.

Challenges in Logistics Efficiency

Despite the positive growth, Indonesia faces significant challenges in logistics efficiency. In 2022, logistics costs accounted for 14.29% of the country's GDP, which is considered high compared to international standards. This inefficiency not only affects domestic economic performance but also impacts the competitiveness of Indonesian exports in the global market by increasing logistics costs.

Government Initiatives to Strengthen Logistics

To address these challenges, the Indonesian government is taking proactive measures. The government is currently processing a draft Presidential Regulation on Strengthening National Logistics, which aims to create a more effective, efficient, and globally competitive logistics system. The strategy includes three main pillars:

1. Infrastructure connectivity development
2. Digitalization and service integration
3. Capacity building for human resources and logistics service providers

Call for Stakeholder Collaboration

Minister Airlangga emphasized the need for collaboration among various stakeholders to achieve these goals. He called upon private sector innovation, global partnerships, and professional input to support the government's efforts. The minister stressed that transforming the logistics sector requires a collective effort and encouraged all stakeholders to be part of this significant transformation.

Future Prospects

The projected growth of the transportation and warehousing sector presents opportunities for economic expansion and improved logistics efficiency. With the government's comprehensive strategy and the collaboration of various stakeholders, Indonesia aims to enhance its logistics performance and strengthen its economic competitiveness globally.