According to a Momentum Works report, logistics delivery costs in Indonesia are highly variable. In some areas, shipping costs are very low, while in others they are extremely high.
For example, the average cost of shipping goods from DKI Jakarta to West Papua reaches Rp128,608 per kilogram (kg). This price is almost double the cost of shipping to North Maluku, which is also located in Eastern Indonesia.
The following is a comparison of the average logistics delivery costs from DKI Jakarta to several provinces surveyed by Momentum Works in the first half of 2021:
1. West Papua: Rp128,608/kg
2. North Maluku: Rp69,009/kg
3. North Sulawesi: Rp62,736/kg
4. East Kalimantan: Rp62,736/kg
5. Aceh: Rp56,462/kg
6. South Sumatra: Rp36,073/kg
7. East Java: Rp28,231/kg
8. DKI Jakarta: Rp6,273/kg
Momentum Works attributes the wide variation in logistics delivery costs across Indonesia to geographical constraints, limited access to shipping in several areas, and unstable shipping volume and frequency.
Momentum Works also assesses that access to logistics delivery needs strengthening to support *e-commerce* growth.
"Building a logistics solution suitable for all areas is challenging. Local logistics service partners are needed in remote areas," stated Momentum Works in its report.