By : Riza Roidila Mufti
Jakarta /
Mon, March 16, 2020 / 04:14 pm
Trans-Sulawesi railway
construction activities in Pekkae village, Barru regency, South Sulawesi, are
pictured in this 2018 file photo. (Antara/Abriawan Abhe)
Indonesia’s
logistics sector recorded 10.5 percent growth last year supported by high
growth in railway and sea transportation, as well as warehousing, but the COVID-19
pandemic is likely to disrupt growth for
2020 as businesses limit operations worldwide.
Independent advisory Supply Chain Indonesia (SCI) reported on Monday that the domestic logistics sector was now valued
at Rp 881.7 trillion, representing 5.6 percent of Indonesia’s gross domestic
product (GDP). The sector’s 10.5
percent growth last year marks an acceleration from 8.52
percent in 2018. The logistics
sector covers rail, road, sea, river and air transportation, as well as
warehousing, courier and postal services.
The transportation subsector
contributed around 83 percent of the overall logistics sector, valued at Rp
728.5 trillion. The remaining 17 percent was contributed by the warehousing
subsector with a Rp 153.1 trillion valuation in 2019, a 16.7 percent rise from
the previous year.
“Based on Indonesia’s economic
data in the past three years, the SCI projects that Indonesia’s
logistics sector will grow around 12.7 percent in 2020 with a contribution to GDP of Rp 993.9 trillion,” SCI chairman Setijadi said in a statement obtained by The Jakarta Post. The transportation subsector is predicted
to grow by 8.2 percent and warehousing by 11.3 percent.
“The 2020 projection will be
revised because of the COVID-19 disease that has had a significant effect on
global trade and logistics activities, including in Indonesia.”
Read also: Indonesia's
domestically driven economy could be blessing in disguise amid outbreak: ADB
Around 27 percent of Indonesia’s
non-oil and gas imports come from China and 16.7 percent of Indonesia’s exports
go to China, the SCI noted.
In
2019, road transportation contributed 54 percent to the whole transportation subsector, followed by air transportation (35.4 percent), sea
transportation (6.9 percent), river and lake ferrying (2.4 percent) and
railways (1.7 percent).
“Although road transportation
contributed the most, the highest growth rate in 2019 was railway transportation [15.57 percent] and sea transportation [12.12 percent],” the SCI’s
statement reads. Road transportation grew 10.36 percent, river and lake ferry
transportation at 6.64 percent and air transportation 6.96 percent.
Source : The Jakarta Post,
16.03.20.
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