During the pandemic, almost all business sectors experienced a decline in profits and even had to go out of business. In dealing with this, the Indonesian government continues to try to restore the business sector affected by the pandemic. One of them is the logistics sector which continues to receive support from the Transportation Research and Development Agency of the Ministry of Transportation in order to recover.

During the pandemic, logistics has become the backbone for other sectors that require the distribution of goods, especially when everyone is doing activities from home. New adjustments and strategies are needed between global supply chains with adaptation, digitization, readiness for the sustainability of the logistics system during a pandemic. To encourage this logistics recovery, policies and full support from the government as a regulator are needed so that the process of distributing goods can be carried out quickly and precisely. Therefore, it is necessary to prepare a mature logistics distribution system, through the support of the roles of various parties in order to realize the acceleration of logistics distribution and new business opportunities in this pandemic era.

Based on data from the Statistics Indonesia (BPS), the growth of the logistics sector (transportation and warehousing business) in Q1/2020 was 1.27% (y-on-y). In the first half of 2019, the logistics sector grew by 5.45%. With this figure, the logistics sector contributed to the GDP in Q1/2020 by 5.17%. There was a decrease in contribution compared to Q1/2019 which was recorded at 5.53%. The logistics sector includes the sub-sector of warehousing and transportation support services, as well as postal and courier services. The logistics sector also includes the transportation sub-sector per mode, namely rail; land; sea; air; and rivers, lakes, and crossings.

The decline in the logistics sector was due to the Covid-19 pandemic which had an impact on the decline in demand for goods and commodities, as well as industrial activity. Household consumption, which contributes the most to GDP, experienced a decrease in growth from 5.02% in Q1/2019 to 2.84% in Q1/2020. The decline in the volume of the logistics sector was also influenced by the negative growth of Indonesia’s exports and imports. Exports grew by -6.37% and imports by -11.89% (q-to-q). The decline in exports and imports occurred because the Indonesian industry was part of the global supply chain affected by the Covid-19 pandemic. The large decline in imports also shows the dependence of Indonesian industry on the supply of capital goods and raw materials from overseas.

In addition, the main challenge for the national logistics sector is a very conventional business model. For this reason, the presence of the National Logistic Ecosystem (NLE) is expected to simplify business processes in the logistics sector. The Land Transport Organization (Organda) said that before the current government era, logistical constraints were always related to infrastructure, today, the government has built infrastructure such as roads or ports.

In addition, the logistics sector barriers are not only centred on infrastructure, but also several other obstacles because of the COVID-19 pandemic,  the lack of adaptation to an online/application-based system so that the business model is still very conventional. The movement of goods between modes also has no good standardization so that it is not integrated. It makes the hard copy system is still used; consumers are still asking for a wet stamp. In fact, now it has allowed all documents to be done digitally as is done by various e-commerce. In the midst of the COVID-19 pandemic where businesses as much as possible have to reduce physical contact, it will certainly cause the process to be hampered and take longer than usual. This causes the delivery of goods may take longer than usual.

However, when compared to other sectors, the logistics sector is one sector that is reaping a business boom in mid-2020 to early 2021. This condition, one of which is triggered by an increase in people’s digital activities when adapting to pandemic conditions, including online shopping.

Citing data from the Ministry of Finance, e-commerce purchases increased 18.1% to IDR 98.3 million transactions with a total transaction value of 9.9% to IDR 20.7 trillion. The logistics segment is relatively stable during the Covid-19 pandemic. The Indonesian Logistics and Forwarders Association (ALFI) admits that logistics activities that can survive and even experience positive growth are e-commerce logistics services and courier services.

Estimating better logistics business activity in 2021, it is expected to grow to 7%. The growth estimation is still not as expected when compared to the growth rate in years prior to the Covid-19 pandemic which could reach above 10%. The logistics business condition in Q1/2021 experienced growth, mainly supported by consumption. In addition, investment in the logistics sector has also returned due to optimism that the Covid 19 vaccination has been distributed.

During the pandemic, almost all business sectors experienced a decline in profits and even had to go out of business. In dealing with this, the Indonesian government continues to try to restore the business sector affected by the pandemic. One of them is the logistics sector which continues to receive support from the Transportation Research and Development Agency of the Ministry of Transportation in order to recover.

During the pandemic, logistics has become the backbone for other sectors that require the distribution of goods, especially when everyone is doing activities from home. New adjustments and strategies are needed between global supply chains with adaptation, digitization, readiness for the sustainability of the logistics system during a pandemic. To encourage this logistics recovery, policies and full support from the government as a regulator are needed so that the process of distributing goods can be carried out quickly and precisely. Therefore, it is necessary to prepare a mature logistics distribution system, through the support of the roles of various parties in order to realize the acceleration of logistics distribution and new business opportunities in this pandemic era.

Based on data from the Statistics Indonesia (BPS), the growth of the logistics sector (transportation and warehousing business) in Q1/2020 was 1.27% (y-on-y). In the first half of 2019, the logistics sector grew by 5.45%. With this figure, the logistics sector contributed to the GDP in Q1/2020 by 5.17%. There was a decrease in contribution compared to Q1/2019 which was recorded at 5.53%. The logistics sector includes the sub-sector of warehousing and transportation support services, as well as postal and courier services. The logistics sector also includes the transportation sub-sector per mode, namely rail; land; sea; air; and rivers, lakes, and crossings.

The decline in the logistics sector was due to the Covid-19 pandemic which had an impact on the decline in demand for goods and commodities, as well as industrial activity. Household consumption, which contributes the most to GDP, experienced a decrease in growth from 5.02% in Q1/2019 to 2.84% in Q1/2020. The decline in the volume of the logistics sector was also influenced by the negative growth of Indonesia’s exports and imports. Exports grew by -6.37% and imports by -11.89% (q-to-q). The decline in exports and imports occurred because the Indonesian industry was part of the global supply chain affected by the Covid-19 pandemic. The large decline in imports also shows the dependence of Indonesian industry on the supply of capital goods and raw materials from overseas.

In addition, the main challenge for the national logistics sector is a very conventional business model. For this reason, the presence of the National Logistic Ecosystem (NLE) is expected to simplify business processes in the logistics sector. The Land Transport Organization (Organda) said that before the current government era, logistical constraints were always related to infrastructure, today, the government has built infrastructure such as roads or ports.

In addition, the logistics sector barriers are not only centred on infrastructure, but also several other obstacles because of the COVID-19 pandemic,  the lack of adaptation to an online/application-based system so that the business model is still very conventional. The movement of goods between modes also has no good standardization so that it is not integrated. It makes the hard copy system is still used; consumers are still asking for a wet stamp. In fact, now it has allowed all documents to be done digitally as is done by various e-commerce. In the midst of the COVID-19 pandemic where businesses as much as possible have to reduce physical contact, it will certainly cause the process to be hampered and take longer than usual. This causes the delivery of goods may take longer than usual.

However, when compared to other sectors, the logistics sector is one sector that is reaping a business boom in mid-2020 to early 2021. This condition, one of which is triggered by an increase in people’s digital activities when adapting to pandemic conditions, including online shopping.

Citing data from the Ministry of Finance, e-commerce purchases increased 18.1% to IDR 98.3 million transactions with a total transaction value of 9.9% to IDR 20.7 trillion. The logistics segment is relatively stable during the Covid-19 pandemic. The Indonesian Logistics and Forwarders Association (ALFI) admits that logistics activities that can survive and even experience positive growth are e-commerce logistics services and courier services.

Estimating better logistics business activity in 2021, it is expected to grow to 7%. The growth estimation is still not as expected when compared to the growth rate in years prior to the Covid-19 pandemic which could reach above 10%. The logistics business condition in Q1/2021 experienced growth, mainly supported by consumption. In addition, investment in the logistics sector has also returned due to optimism that the Covid 19 vaccination has been distributed.