Indonesia Freight and Logistics Market Size, Share, Growth, and Industry Analysis, By Type (Road Freight, Rail Freight, Air Freight, Sea Freight, Third-party Logistics, Cold Chain Logistics), By Application (E-commerce, Retail, Manufacturing, Distribution, Trade, Agriculture) and Regional Forecast From 2026 to 2035

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INDONESIA FREIGHT AND LOGISTICS MARKET OVERVIEW

The global Indonesia Freight and Logistics Market is estimated to be valued at approximately USD 5.38 Billion in 2026. The market is projected to reach USD 11.19 Billion by 2035, expanding at a CAGR of 6.61% from 2026 to 2035.Indonesia accounts for ~60% domestic share within ASEAN, with regional trade at ~25% and global at ~15%. Growth is driven by e-commerce and infrastructure investment.

The Freight and Logistics Market is highly critical in supporting the largest economy of Southeast Asia in Indonesia. With the high rate of urbanization, growth in e-commerce penetration and the rise of international trade, the sector has been recording progressive growth since last decade. This geographic location of Indonesia which extends to more than 17,000 islands gives huge opportunity and makes the logistics quite complex. Infrastructure incentives by the government such as the National Logistics Ecosystem (NLE) or the construction of large seaports and international airports are also desirable to facilitate the work of freight, reduce logistical expenditure, and provide better connection between islands. All these are making Indonesia a hub of logistics in the region particularly in sea trade routes.

The market is filled with road freight, sea transport, air transport, and rail. However the main transport modes are road and sea as the country is archipelagic in nature. Most of the focus sectors of demand are manufacturing, agriculture, automotive, FMCG and retail. The emergence of digital spaces and third-party logistics (3PL) providers is transforming activities, enhancing supply chain lucidity and efficiency. Nevertheless, primary issues that have been affecting the industry include congestion, poor rural connectivity, and poor regulation. With the still increasing Indonesia economy, along with the expanding digital and infrastructure development, there will be a vibrant long-term development of the freight and logistics sector.

KEY FINDINGS

• Market Size and Growth: Global Indonesia Freight and Logistics Market size is valued at USD 5.38 billion in 2026, expected to reach USD 11.19 billion by 2035, with a CAGR of 6.61% from 2026 to 2035.
• Key Market Driver: E-commerce growth drives 42%, domestic manufacturing expansion contributes 35%, increasing demand for integrated logistics services nationwide.
• Major Market Restraint: Poor infrastructure affects 38%, regulatory complexity impacts 26%, slowing efficient transportation and logistics operations across regions.
• Emerging Trends: Adoption of digital platforms represents 33%, cold chain logistics expansion covers 29%, and AI-based fleet management accounts for 24%.
• Regional Leadership: Java dominates 47%, Sumatra accounts for 21%, reflecting industrial hubs and high freight activity concentration.
• Competitive Landscape: Top five logistics providers control 44%, medium regional players contribute 30%, focusing on technology adoption and strategic partnerships.
• Market Segmentation: Road freight accounts for 39%, sea freight 28%, air freight 15%, rail freight 8%, third-party logistics 6%, cold chain logistics 4%.
• Recent Development: Expansion of port facilities increased 36%, while adoption of automated warehousing grew 22%, enhancing operational efficiency in Indonesia.

US TARIFF IMPACT

Indonesia Freight and Logistics Market Industry had an Overall Positive Effect Due to US Tariffs

The US tariff has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-2025. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand.

This is because tariffs imposed by the US, especially when trade is strained with China, have both a positive and negative impact on the freight and logistic market in Indonesia. On the one side, Indonesia has been experiencing the benefits of trade diversification due to diversifying industries outside China because they want to trade without facing the US tariffs. This transition has resulted in an increase in freight and logistics services to meet the freight demand, particularly in the industries such as textiles, electronics, and furniture and enhancing the export quantities and development of new logistic routes. Conversely, the tension period brought about by the unpredictable tariffs and world trade policy has led to massive disruption of supply chains and fluctuations in shipping price and freight timetables. Indirectly also affecting logistic efficiency and costs, some Indonesian exporters have to contend with tariffs on globally sourced elements of their input. Also, the demands to operate under the dynamics of trade regulations have encouraged logistics companies to improve their digital infrastructure and customs solutions. In general, US tariffs are a problem, but it is also an opportunity of Indonesia because with that, it would have the chance to enhance its position within the regional supply chain and logistics system.

LATEST TRENDS

Rising E-Commerce Adoption to Drive Market Growth

E-commerce, particularly in tier-2 and tier-3 cities has been growing very rapidly, which has become one of the recent and most significant impetuses behind the Indonesia Freight and Logistics Market. With the gradual increase of internet and smartphone penetration throughout the archipelago, increasingly more consumers are looking to do their shopping online and what this is doing to e-commerce sites in the country is driving them to reach out beyond the large urban centres. This change has created a huge demand on last-mile deliveries efficiency, cold-chain resource of perishable materials as well as vibrant warehousing facilities. Larger players such as Tokopedia, Shopee, and Lazada are engaging third-party logUSAistics (3PL) players to enhance speed, tracking, customer experience. The booming e-commerce is also urging the field of logistics to make investments in automation, route planning, and delivery networks optimization reinforced by AI, as well as combined delivery systems. Additionally, the government programs that aid digitalization and the involvement of MSMEs in online business have contributed to further acceleration. Consequently, e-commerce is not only transforming consumer behaviour but it is also causing process changes in Indonesia freight and logistics ecosystem with respect to transformation and innovation to become a long-term source of growth within the market.

• According to BPS – Statistics Indonesia, the amount of freight transported by domestic air transport reached 61.5 thousand tons in December 2024, rising 9.82% compared with November 2024 showing momentum in air cargo usage within the country. 

• Data from BPS – Statistics Indonesia show that from January to December 2024, sea transport freight volume was 379.2 million tons, representing a 1.45% increase over the previous year, indicating sustained high movement of goods by sea in the archipelago. 

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INDONESIA FREIGHT AND LOGISTICS MARKET SEGMENTATION

Based On Types

Based on Type, the Indonesia Freight and Logistics Market can be categorized into Road Freight, Rail Freight, Air Freight, Sea Freight, Third-party Logistics and Cold Chain Logistics.

• Road Freight: The fact that Indonesia has a large road system on the larger islands of, say, Java and Sumatra, means that they occupy the domestic logistics. It’s essential to short-haul and last mile deliveries, in particular, FMCG and e-commerce.

• Rail Freight: It remains underutilised though the recent investments in rail infrastructure by government are increasing the usage. It can provide cheap conveyance of bulk goods through longer routes that are inland.

• Air Freight: It’s suitable to safe delivery of high-value, time sensitive freight such as in the case of electronics and pharmaceuticals. The growth momentum was backed by increased e-commerce and connection to the airports.

• Sea Freight: Essential to trade between islands and across international borders as Indonesia is part of an archipelago. The efficiency is increasing as a result of port modernization projects such as Patimban and Kuala Tanjung.

• Third-party Logistics: Being in high demand, since firms outsource their knowledge to areas of warehousing, distribution, and technology-enabled logistic process. It’s key to scaling up supply chains of e-commerce and manufacturing.

• Cold Chain Logistics: It is growing fast as more companies demand frozen foods and vaccines as well as temperature sensitive products. Nevertheless, the company still encounters infrastructural and financial challenges.

Based On Applications

Based on Application, the Indonesia Freight and Logistics Market can be categorized into E-commerce, Retail, Manufacturing, Distribution, Trade and Agriculture.

• E-commerce: The fastest-growing piece, which increases the demand of express-delivery, warehousing and last-mile services. It is one of the first movers of logistics technology.

• Retail: Needs delivery in the same way, every time as in the case of large-scale supermarkets and omnichannel enterprises. The urban logistics hubs are being restructured due to the retail expansion.

• Manufacturing: Primary contributor to freight volume particularly the textiles, automotive and electronics. It requires long haul logistics and just-in-time supplies chain.

• Distribution: It is based in the middle of transporting goods in the fragmented geography of Indonesia. Those are cross-docking, hub-and-spoke models, and effective fleet management.

• Trade: The flow of international trade boosts the need of sea and air transportation, handling at the customs and logistic requirements at ports. Market dynamics are also boosted by trade agreements.

• Agriculture: Has a need of cold chain and rural delivery of perishable item. The remote farming still encounters infrastructure shortages.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Infrastructure Development and Government Initiatives to Boost the Market

Indonesia Freight and Logistics Market Growth is happening because of large scale infrastructure development and the government supported reforms. The National Logistics Ecosystem (NLE) is designed to harmonize shipment in logistics through the convergence of digital platforms, make the customs smoother, and the logistical expenses lower. Toll road, port (such as Patimban and Kuala Tanjung), and airport investments are improving inter-island and international connectivity. All these innovations are reducing transit times and improving the prospective and sustainability of logistics operations. In addition, government initiatives to modernize the transportation systems around eastern Indonesia are creating new areas of growth and accessibility into underserved areas. With an increase in quality of the infrastructure, the distribution operation can be scaled to the size of the business thus increasing the overall growth of the market.

• According to BPS – Statistics Indonesia, from January to June 2025, sea freight volumes increased by 22.40% year-on-year to 242.1 million tons, reflecting stronger throughput from key ports and enhanced logistics capacity. 

• BPS – Statistics Indonesia reports that rail freight transport volumes rose to 73.5 million tons from January to December 2024, a 9.42% increase, indicating growing use of inland rail logistics in complement to other modes. 

Growth of E-Commerce and Digitalization to Expand the Market

The thriving e-community industry in Indonesia is significant to the transformation of face of logistics needs. Social sites such as Tokopedia, Shopee, and Lazada are challenging the logistics companies to enhance delivery time, accuracy, and customer experience. They are growing last-mile delivery volumes and warehouse requirements due to the increasing online shopping levels in particular in tier-2 and rural cities. As a reaction, the logistics sector is integrating things such as AI to optimize routes, keep real-time track, and automate inventory management. The digital transition is also decreasing mistakes and allowing scaling at an inexpensive level. The e-commerce is becoming disruptive within the freight and logistics industry as the level of consumer e-commerce expectation and the digital innovation are increasing.

Restraining Factor

Underdeveloped Rural and Inter-Island Infrastructure to Potentially Impede the Market Growth

Lack of proper infrastructure such as in the rural and remote islands areas has been cited as one of the major bottlenecks in the Indonesian Freight and Logistics market. Although the transport infrastructure in main cities is well developed (such as Jakarta and Surabaya) with newly built roads and ports, the transport situation on many other islands internally is still poor with poor connections, outdated transport facilities and a lack of logistic services. This slows, makes it costly and increases unreliability in movement of goods especially agricultural and essential supplies. High transport and fuel costs in the regions also add undue burdens on supply chains. In addition, there are frequent delays and the absence of such cold chains gear used in perishable goods. Such lapses restrain the penetration of the market and present major bottlenecks to the nation spreading logistic output efficiency; which are cost-obstructing the even economic growth of the national scale in the expansive geography. 

• BPS – Statistics Indonesia data show that although total sea freight was high, the volume of freight transported by ships in June 2024 (30.15 million tons) was 4.03% lower than in June 2023, pointing to short-term volatility in sea cargo flows. 

• The same official BPS transport statistics indicate that freight transported by train in June 2025 fell 8.30% month-to-month to 6.0 million tons, highlighting fluctuations in inland freight movement. 

Expansion of Digital Logistics Platforms to create Opportunity for the Product in the Market

Opportunity

Indonesia logistics industry is a major opportunity through the digital transformation. Both startups and incumbents are allocating serious investments in technology-based logistics platforms, which have features of real-time tracking, route optimization, and fleet management, as well as end-to-end visibility. Due to the increasing growth in e-commerce and the rise in customer demands, digital tools were making it possible to manage complex delivery schedules and scale operations in an efficient manner.

Such platforms come in handy especially when it comes to last-mile delivery challenges and enhancing service in underserved areas. This potential is further enhanced by supporting digital innovation and integration of fintech by the government. Technology acts as an effective enabler of the competitiveness in the industry in the long run because the adoption of digitalization allows the companies that represent the logistics field to cut down the costs, enhance the transparency, and provide better customer service, which in turn would increase the Indonesia Freight and Logistics Market Share.

• BPS – Statistics Indonesia shows that domestic sea freight volumes from January to June 2025 reached 242.1 million tons, up 22.40% year-on-year, underscoring available capacity for expanded cargo logistics services via maritime networks. 

• From official BPS data, inland waterway freight and passenger traffic rose, with inland waterway passengers reaching 4.8 million in June 2025, a 25.35% increase from May, indicating rising intermodal use potential for logistics chains. 

Fragmented Supply Chain and Coordination Gaps could be a Potential Challenge for Consumers

Challenge

Indonesia is no exception and in fact its freight and logistical business is also confronted with a major challenge of dealing with a fractured supply chain environment. The geographic composition of the country (innumerable islands and participation of many stakeholders (transporters, ports, custom, warehouses) makes it problematic in terms of the coordination. Miscommunication, lack of standardization processes and sharing inconsistent information tends to cause delays, inaccurate information sharing and operational costs rise.

The smaller and medium logistics companies which make up most of the industry do not always have the technology or resources to be incorporated into the larger networks. This kind of disaggregation impacts the end-to-end visibility and reduces efficiency in time-sensitive or high-volume operations such as e-commerce and manufacturing. To address these coordination issues, there needs to be the creation of collaborative ecosystems, the reinforcement of better digital infrastructure, and harmonized regulation across segments in logistics.

• According to BPS – Statistics Indonesia, while some freight modes grew, freight transported by domestic air transport in June 2025 was 55.7 thousand tons, down 3.80% month-to-month, illustrating occasional downturns in aerial cargo volumes that logistics firms must manage. 

• BPS – Statistics Indonesia also shows that the volume of freight carried by train decreased by 8.30% in June 2025 compared with May, showing challenges in maintaining consistent rail freight performance. 

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INDONESIA FREIGHT AND LOGISTICS MARKET REGIONAL INSIGHTS

• North America

Although the Indonesia Freight and Logistics Market report focuses primarily on Indonesia’s domestic and regional trade flows, broader freight and logistics industry data suggest that North America is likely to account for around 24–25 % of the global logistics market over the 2026–2035 period, reflecting strong infrastructure and high demand for long‑haul freight services that also shape international trade corridors with ASEAN markets like Indonesia. North America, mainly the United States, assumes a strategic importance in influencing freight and logistics market in Indonesia by interaction in terms of freight and logistics ties, investments and supply chain restructuring. And with the US sourcing more products outside of China, Indonesia is turning out to be a manufacturing and sourcing destination of choice. The movement is amplifying the amount of sea and air freight between the two nations and leading to a rise in the need of logistics services. Moreover, the companies of United States Indonesia Freight and Logistics Market are making investments in 3PLs and digital logistics in Indonesia, and have brought modern storage infrastructure, cold chain, and other new systems into the country, as well as AI-based tracking systems. These partnerships are bringing modernity in the logistics industry in Indonesia and enhancing the level of operations. With the further incorporation of Indonesia to the world value chains, its links to North America will be crucial to its innovation and trade-based freight demand.

• Europe

Europe is expected to capture close to 22–25 % of the global freight and logistics market share across the 2026–2035 forecast, supported by established trade links, advanced supply chain networks, and increasing demand for sustainable logistics services that contribute to international freight movements involving Indonesian exports and imports.The increasing attention to trade and sustainability in Europe is disposing effects on the logistics market of Indonesia because of bilateral agreements, green investments in logistics, and technology transfers. The collaborations of the European Union with the ASEAN and separate logistics companies are encouraging going green by means of low-carbon transportation and digital supply chain platforms. European demand of Indonesian commodities, such as, textiles, palm oil, and electronics is generating long distance freight demands through oceanian and aero modes. Further, European logistic firms that have international presence are venturing into the market in Indonesia by means of joint venturing and enterprises, enhancing effectiveness and adherence to international standards. The focus on automation, circular logistics, and the supply chain transparency is contributing to the modernisation of operations in Indonesia. With increasing trade relations, the European focus on sustainability and regulating guidelines will influence freight policy in Indonesia to a great extent.

• Asia

The Asia Pacific region is projected to hold the largest share of the freight and logistics landscape approximately 40–42 % globally between 2026 and 2035a dominance that aligns with Indonesia’s growing role as a key logistics hub in Southeast Asia and the region’s expanding intra‑Asian trade and e‑commerce connectivity. The most influential regional player in the Indonesian freight and logistics market is Asia, which has good intra-Asian trade and regional manufacturing networks. As part of the key partners, China, Japan, South Korea, India, and ASEAN countries are closely incorporated into import-export operations in Indonesia. The Regional Comprehensive Economic Partnership (RCEP) is also enhancing the volume of trade, which is leading to the emergence of a greater need in the logistics system, both cross-border logistics and multimodal freight. Infrastructure facilities of Indonesia which include ports, railways and warehouses are also being developed by Asian investors who are assisting in linking bridge connections. Smart logistics and port digitalization are funded and delivered with technologies by the countries such as China and Japan. Asia has become a more than trade partner or the corner stone of the freight expansion in Indonesia in terms of proximity, economic integration, and cultural congruence with a great focus on speed, efficiency and resilience in the supply chains.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market through Innovation and Market Expansion

Indonesia Freight and Logistics Market is a highly competitive and diversified market where domestic and international companies stimulate innovations and expansion of the services. Among the main players on the market, it is possible to note JNE Express and TIKI, the two biggest local logistics giants that characterize themselves by vast local distribution channels and presence in last-mile delivery. POS Indonesia, the state-owned mail service, is also a key competitor, as the company increases the scope of its operations to the e-commerce logistics and warehousing. Multinational operators in logistics such as DHL, Fed-Ex, Kuehne + Nagel and DB Schenker have put major operation facilities in Indonesia with services that include air freight, sea freight, customs clearance and supply chain services. Wahana Prestasi Logistik and SAP Express are two local firms with blistering growth and presence in the 3PL and express segments. Moreover, online-retail-fuelled companies such as SiCepat and Ninja Xpress are expanding rapidly in order to fulfil the requirements of online shopping. Such players are investing in digital technologies, warehousing system, and automation in order to speed up and be more efficient, and all against the backdrop of competing to win the increasing Indonesian logistics need as its economy continues to transform.

• JNE Express (Indonesia): JNE Express operates within Indonesia’s logistics space where official data from BPS – Statistics Indonesia show freight transport systems moving hundreds of millions of tons annually across air, sea, and rail, reflecting the broad scale of logistics services in which JNE participates. 

• TIKI (Indonesia): TIKI provides freight and parcel delivery services that contribute to the domestic freight volume, set against BPS reports of 666.4 thousand tons of air freight moved during calendar 2024 as part of Indonesia’s integrated modal logistics system. 

List of Top Indonesia Freight And Logistics Companies

• JNE Express (Indonesia)
• TIKI (Indonesia)
• Wahana Express (Indonesia)
• Lion Parcel (Indonesia)
• SiCepat (Indonesia)
• J&T Express (Indonesia)
• Pos Indonesia (Indonesia)
• DHL Indonesia (Germany)
• FedEx Indonesia (U.S.)
• Maersk Indonesia (Denmark)

KEY INDUSTRY DEVELOPMENT

March 2025: One of the recent deals is on the digital logistics startup Envilog, who received a 30% investment by a large Jakarta-based bonded logistics provider called GL Terminal. The alliance will allow Envilog to expand its built-in digital (Customs, port, depot, and trucking operations) platform into Indonesia over other port cities. This is not only an effort to improve coordination in fragmented logistics chains but also a move to boost expansion strategies to Surabaya, Semarang and Belawan and finally Southeast Asia.

REPORT COVERAGE

Indonesia Freight and Logistics Market is shifting towards a new era of change because of good economic grounds, growth of infrastructure and fast development of e-commerce. Connectivity and lowering logistics cost are also being helped by government efforts such as the development of the National Logistics Ecosystem (NLE) and investment in ports, roads and airports. Demand of road, sea and the third party logistics services keeps increasing as Indonesia is a regional supply chain hub in Southeast Asia. The possibility of the relocation of the global supply chains out of China has given new possibilities to Indonesia to make them capture more trade flows as well as attract foreign investments in terms of manufacturing and logistics facilities.

Meanwhile, the digitalization is hastening the development of the sector. Efficiency, visibility, and coordination in supply chains are becoming more efficient by the growth of logistics technological startups and other digital freight platforms. Nevertheless, there are still problems such as underdeveloped remote area/infrastructure, fragmentation of the supply chain, and regulatory bottlenecks. Indonesia should not neglect the process of modernization of rural transport infrastructure and the implementation of smart logistic tools in the country so that it can reap all the benefits. Indonesia freight and logistics industry is a high-growth, long-term industry due to rising local consumption and cross-border trade and the surging foreigners in the country which makes it a major force in regional and global logistical processes.