Transportation and Warehousing Sector Grew 8.2% in Semester I 2017

Amidst domestic economic stagnation, the transportation and warehousing sector managed to record 8.2 percent growth in the first half of 2017 compared to the first half of the previous year (YoY). Infrastructure development, service improvements, and the rise of online transportation and sales fueled the growth of the transportation and logistics sector.

The rail transport sub-sector recorded the highest growth, at 15.18 percent in the first half of the year (YoY), followed by air transport at 12.56 percent. All transportation and warehousing sub-sectors outperformed national Gross Domestic Product (GDP) growth except for the sea transport sub-sector, which only grew by 2.29 percent (YoY).

The transportation sector's GDP in the first half of 2017 reached Rp 196.1 trillion. The largest contribution came from the land transport sub-sector, amounting to Rp 109.14 trillion or 55.65 percent. Meanwhile, the warehousing and supporting services for transportation, post, and courier sub-sector contributed Rp 30.4 trillion or 15.52 percent of the transportation GDP.