Indonesian Logistics Association (ALI) Chairman Zaldi Ilham Masita said that the growth “could be above 10%”, in an article posted on the ALI website on 30 July.

Masita elaborated why ALI is predicting strong growth – but also pointed out the challenges that need to be overcome.

He stated that despite the E-commerce business driving exponential growth in the last five years, the weak logistics standardization in the country made it difficult to implement automation systems that could increase productivity.

“Indonesia’s geography of 17,000 islands is a big challenge for newcomers from overseas.” he added.

The article also quoted Yuki Nugrahawan Hanafi, the Chairman of the Indonesian Logistics and Forwarders Association (ALFI), who predicted a 10+% growth. However, Yuki added that Indonesia’s logistics sector still had a number of issues to address before its full potential could be realized. Most important of which, according to him – were the logistics costs– which are very high in comparison to Malaysia and Thailand.

Yuki also added that all the stakeholders in Indonesia’s logistics industry must “prepare themselves for the Industry 4.o”. Referring to the so-called Fourth Industry Revolution – which will see manufacturing and distribution transformed by Artificial Intelligence, automation and bid data.