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Industry and trade play an important part in Indonesia’s economic growth. However, these sectors also require support from the other sectors to continue growing, one of which is logistics transport.
Moreover, in the early days of his administration, President Prabowo Subianto targeted an economic growth rate of 8%. For this reason, the support of logistics transport is vital.
The recent Eid al-Fitr holiday period revealed that logistics transport was the largest contributor to economic growth. The 15-day restriction on transportation operations, from March 24 to April 8, 2025, had a significant impact.
Quoting from kompas.com, the Chairman of Aptrindo revealed that the restriction on freight transportation during the Eid period caused losses of up to Rp5 trillion.
“In addition, the international trust in us (Indonesia) will decrease because we already agreed on the export schedule. If there are restrictions, it will come to a standstill because there is a prohibition,” he said, as reported by kompas.com, Tuesday (18/3/2025)
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So, to what extent are the industrial and trade sectors dependent on logistics transportation? Check out the explanation below.
Without logistics transport, the industrial sector will certainly be unable to distribute final products to consumers, resulting in product accumulation. This also impacts sea transportation, particularly in terms of demurrage and dwelling time, which industry players must carefully manage.
Disrupted logistics transport will increase dwelling time at ports. In turn, it could trigger a domino effect that disrupts the distribution of export and import goods, ultimately hindering economic growth.
Demurrage costs also result from shipping delays, leading to substantial penalties for the industrial and transportation sectors, all due to the lengthy process of goods entering and exiting the port.
This condition can certainly worsen the national logistics index, which decreases industry players’ trust and negatively impacts the country’s economy.
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Currently, land logistics transport dominates up to 90 percent of the total logistics in the country. Meanwhile, sea and air transportation take up the remaining portion.
Therefore, it’s clear that to achieve economic growth targets, the smooth operation of the industrial and trade sectors must be maximized through logistics transport as one of the key supporters.
Choosing a reliable logistics partner is thus vital to ensure a smooth and efficient distribution process. One of the service providers that could be a good choice is SELOG.
With more than 20 years of experience, SELOG is here to offer a variety of comprehensive and end-to-end logistics service needs. From the Trucking, Shipping Services, Freight Forwarding, Warehousing, also Project Cargo.
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For land transportation, SELOG’s trucking services include Last Mile, Long Haul, and Less Than Truckload (LTL), accommodating deliveries to remote locations with a diverse fleet, from Blind Vans to CDE Trucks.
SELOG’s services are also supported by the latest digital technology, which is not only convenient but also effective and efficient for businesses, including the Astra Fleet Management Solution (AstraFMS) and Warehouse Management System (WMS).
These technologies allow businesses to track delivery vehicles in real time, ensuring vehicle and driver safety, while optimizing the processes of goods receipt, storage, stock management, retrieval, packaging, and delivery.