Indonesian e-Commerce transactions are predicted to exceed IDR 700 trillion in 2023

Jakarta - The Indonesian Logistics Association (ALI) predicts that the national supply chain services business will grow 8% throughout this year, sustained by micro, small, and medium enterprise digitalisation. ALI Board of Experts Chairperson Nofrisel said that the logistics sector that supports micro, small, and medium enterprises (MSMEs) must grasp the opportunity.

grasp the opportunity. Besides that, the positive forecast for the logistics sector refers to Indonesia’s economic growth forecast in 2023 that is predicted to reach around 4.7%-5.3%.

“The Indonesian Logistics Association forecasts that logistics business in 2023 will grow around 5%-8%,” he said on Thursday (2/2). He explained that the growth of logistics services would rely on macro and sectoral economic growth.

He hopes that the logistics industry could innovate and take advantage of the opportunities that have yet to be fully utilised, such as regional economic potential and opportunities in the global value-added chain. Nofrisel also said that the government must resolve various issues regarding the regulations, especially the weak law enforcement. According to him, legal uncertainty in logistics services significantly hinders business development. “ALI hopes that there is collaboration and coordination in preparing the regulations and enforcing them as the logistics sector needs certainty,” Nofrisel said.

ALI Chairperson Mahendra Rianto stated that the government and the private sector must prepare suitable policies and strategies in the supply chain sector so that economic fundamentals remain strong. According to him, the government and other stakeholders must support industries that are oriented towards value-added products and services as well as efficiency improvement. “That can recover the state’s balance sheet to positive after some time,” Mahendra said. He reckoned that all parties needed to support the industries that produce commodities and products with high added value. Besides that, business players must also cut inefficient costs by simplifying regulations, implementing standardisations, and becoming more disciplined. He noted that the start-up business must be a lesson for stakeholders in the logistics sector. “We must learn so that we do not pin our hopes on something unsustainable,” he stated. He continued that he supported e-commerce to be one of Indonesia’s barometers that must be maintained with policies that favour and focus on the sellers.