Online Shopping Boom Fuels Growth in the Logistics Sector's GDP

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22/02/2018 15:44 WIB

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The rise of e-commerce, social media, and internet-based transportation and shopping services has transformed consumer shopping habits from offline to online.

Warehouse Sector, Transportation Support, Postal and Courier Services PDB (2014-2017)

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Warehouse Sector, Transportation Support, Postal and Courier Services PDB (2014-2017)

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The surge in online shopping among Indonesians in recent years has fueled the growth of the logistics sector in the country. The emergence of e-commerce, social media, and internet-based transportation services has transformed consumer shopping habits from offline to online.

Data from the Central Statistics Agency (BPS) shows that the logistics sector's economy, based on the 2010 Gross Domestic Product (GDP) at current prices, grew by 13.58% in the fourth quarter of 2017 compared to the same quarter of the previous year (YoY). In fact, a growth trend has been observed from the first quarter of 2014 to the fourth quarter of 2017.

Similarly, the GDP of the warehousing sector, supporting transportation services, postal services, and couriers throughout 2017 also showed growth of 14.3%, reaching Rp 119.7 trillion (YoY). For context, the logistics sector's contribution to national GDP was only 0.75% in 2014, but increased to 0.88% in 2017.

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."