The transportation, logistics, and micro, small and medium enterprises (MSMEs) sector are significant driving industries for national economic growth, the Indonesian Logistics and Forwarders Association (ALFI/ILFA) has said.
ALFI Chairman Yukki Nugrahawan Hanafi is optimistic about the sector growth this year (2023) in view of the government’s economic growth target. The government has projected that the national economic growth in 2023 would range from 5.1% to 5.3%, higher than the projected global economy in 2023, estimated to be 2.2% to 2.7%.
“Our optimism for 2023 is in terms of investment achievements in various industrial sectors in the country, including the transportation and logistics sector,” said Yukki, adding that though geopolitics in Europe still influenced the global economy, the economy in Europe still improved.
“Moreover, the investment target in Indonesia this year reaches IDR 1,400 trillion or exceeds 2022, which was recorded at 1,200 trillion,” said Yukki.
Quoting data from the Ministry of Investment/BKPM, Yukki said that the realization of domestic investment (PMDN) or foreign investment (PMA) in the Transportation, Warehousing, and Telecommunications sectors in 2022 was recorded at IDR 134.3 trillion. This ranked third, after Basic Metal, Metal Goods, Non-Machinery and Equipment Industries (Rp.171.2 trillion) and Mining (Rp 136.4 trillion).
However, realizing PMA/PMDN in the Transportation, Warehousing, and Telecommunications sectors in 2022 still exceeds other sectors, such as the Housing, Industrial Estate, and Office sectors amounting to IDR 109.4 trillion, and the Chemical and Pharmaceutical Industry sector, which was recorded at IDR 93.6 trillion.
“We should be grateful that the transportation, warehousing, and telecommunications sectors were included in the top five achievements in the realization of FDI/PMDN last year,” said Yukki.
In 2022, the realization of FDI and PMDN for the Transportation, Warehousing, and Telecommunications sectors reached US$ 4.1 billion and Rp.75.1 trillion, respectively.
Therefore, added Yukki, all parties need to collaborate and work together to continue to drive the momentum of national economic growth so that it can continue this year and in the following years.
Moreover, President Joko Widodo has also conveyed directions to speed up various investment permits and the development of upstream and downstream ecosystems for Electric Vehicles (EV) ranging from batteries to the EV-based automotive industry, 4-wheel or 2-wheel planning, ecosystem planning, as well as incentives that need to be given.
MSMEs Sector
Yukki stated the MSME sector was also experiencing significant growth. In 2022, investment in the MSME sector reached IDR 318.6 trillion.
The Ministry of Investment/BKPM noted five large MSME sectors in Indonesia in 2022: Trade and Repair, Other Services, Construction, Hotels and Restaurants, Plantation Food Crops, and Livestock. MSME locations were distributed in West Java, East Java, Banten, DKI Jakarta, and Central Java.
Previously, the Central Statistics Agency (BPS) noted that Indonesia’s economy in 2022 would grow by 5.31 percent, higher than the achievements in 2021, which experienced a growth of 3.70 percent.
From the production side, the highest growth occurred in the Transportation and Warehousing Business Field at 19.87 percent. While from the expenditure side, the highest growth was achieved by the Goods and Services Export Component of 16.28 percent.
