Q3 2017, Logistics Sector Grows by 10 Percent

The Gross Domestic Product (GDP) of the logistics sector in the third quarter of 2017 grew by 10 percent compared to the same quarter of the previous year (YoY). Data from the Central Statistics Agency (Badan Pusat Statistik) recorded that the GDP of the warehousing and supporting transportation services; post and courier sector in the third quarter of this year reached Rp 16.87 trillion, compared to Rp 15.33 trillion in the third quarter of the previous year.

Throughout the period (Q1-Q3 2017), the logistics sector recorded growth above 7 percent and consistently outperformed domestic economic growth, which only grew by around 5 percent. In the third quarter of 2017, the growth of the logistics sub-sector also surpassed that of the transportation and warehousing sector, which grew by 8.45 percent. The growth of the logistics sector in the third quarter of 2017 was the highest in the last three years.

The emergence of online shopping, supported by improved transportation infrastructure, has driven the growth of the warehousing and supporting transportation services; post and courier sector to nearly 10 percent. Numerous discount promotions in anticipation of the end-of-year holidays, including Christmas and New Year 2018, could further boost the growth of the logistics sector at the end of this year's quarter.