Indonesia supply chain cost & Ecommerce
With more than 13,000 islands and a 5,000 km span from East to West, Indonesia brings challenges to any supply chain. With poor infrastructure, Indonesia spends 23% of the gross domestic product on logistics, the highest in the region. This compared to Vietnam (25%), Thailand (20%) and Malaysia (13%).
However, even with all the challenges, companies are making investments into Indonesia’s growing eCommerce business, fuelled by a large number of internet users making use of mobile phones. The companies range from courier companies, eCommerce (e.g. MatahariMall), eCommerce logistics (e.g. Thailand’s aCommerce), and online food delivery (e.g. HappyFresh). However, competition is fierce with rising supply chain cost and traditional courier and logistics companies will be left behind if they don’t catch up with technology, such as mobile apps.