Development of the Logistics Industry in 2023?

Liga Asuransi – Dear readers, at the beginning of this year we would like to invite you to see the logistics industry trends in 2023. 

As insurance brokers or insurance experts, we are very interested in the development of the logistics industry in 2023, so we can develop protection programs that suit your needs. . 

We hope this information can help you and the decision-makers in the logistics industry for business success this year.

If you are interested, please share with your colleagues so they also understand like you.

As we already know, in 2023 the threat of a global recession will still haunt the Indonesian economy. According to Sugi Purnoto, Indonesia’s Senior Supply Chain Consultant (SCI), he stated that the impact of the global recession on the logistics industry in Indonesia was very small. Thus, he predicts that the logistics sector in the country will continue to grow.

According to him, the logistics sector is predicted to grow by around 10-20% yoy. One of the logistics growth in Indonesia is influenced by domestic factors. Logistics activities in Indonesia are supported by Fast Moving Consumer Goods, in which population growth in Indonesia has increased to around 275 million people, so demand will also grow.

The industry driving logistics growth in 2023 is the retail sector, such as supermarkets and department stores. In addition, one of the drivers of logistics growth in 2023 will be from the automotive industry, where the players have prepared their newest products.

Industry in the health sector will also continue to grow in pharmaceuticals and medical devices, where it is currently known that people still consume vitamins and use masks. The export & import, chemical, and mining sectors are still growing.

This growth will be a very tight and attractive competition in the logistics field. Especially in the transport of consumer goods and non-mining goods. 

Logistics companies must quickly take steps to innovate, one of which is digitalization. This is useful so that companies can face this competition.

What are the opportunities and challenges in the Indonesian Logistics Sector in 2023?

The development of the logistics sector in Indonesia has been quite good since the pandemic. This is evident when entering 2022, the logistics sector is one of the sectors that has made quite a positive contribution to business and economic development in Indonesia.

Based on data from the Central Statistics Agency (BPS), the logistics sector has been known to grow consistently for three consecutive quarters since early 2022. 

BPS data shows the logistics sector experienced the highest growth compared to other sectors in the I-III 2022 quarters, a row of 15 .79 percent, 21.27 percent, and 25.81 percent.

From the existing growth, Supply Chain Indonesia (SCI) predicts that the contribution of the business sector or the transportation and warehousing sector to the Gross Domestic Product (GDP) will exceed Rp. 1,090.2 trillion in 2023. SCI also predicts that the logistics sector’s contribution by the end of 2022 will reach IDR 957.9 trillion after IDR 719.6 trillion in the previous year.

Knight Frank revealed several observations regarding the development of the logistics sector in 2023 which were released in the Asia Pacific 2023 Outlook report. He predicts that the logistics sector in Asia Pacific will remain resilient in facing challenges in 2023.

In his report, Knight Frank revealed several main trends regarding the growth of the logistics sector that might occur in 2023. 

These main trends are demand for the logistics sector, which is predicted to return to standard, high-quality assets that will continue to be scarce in the long term, and the existence of the life sciences sector as a bright spot for the logistics sector. 

It is hoped that this main trend will become an opportunity for the growth of the logistics sector to continue to face challenges in 2023.

With various opportunities and challenges in the logistics sector in 2023, the national logistics sector is expected to encourage the growth of various business fields, both through increasing volume and capacity competitiveness of each product and commodity.

Therefore, efforts to improve and develop the logistics sector are needed to strengthen the resilience of the national supply chain. There is a need for synergistic collaboration between logistics service providers and logistics service users, such as manufacturing and retail companies so that the logistics sector can continue to experience growth in 2023.

Potential and Constraints for the Development of the Logistics Industry in 2023

As we already know, logistics is a business that includes several components in it. Where the integration of information contained in a logistics business is transportation, inventory, warehousing, reverse logistics and activities related to product packaging.

Under these conditions, we can ensure that the logistics industry business can run well with a unified vision and mission among the existing components.

To be able to see how much business potential there is in the logistics industry, we only need to look at two components, namely demand and supply in a certain period.

By looking at these conditions, the transportation sector, which is a major part of the logistics industry, can work optimally.

If we refer to these two components related to the development of the logistics industry in 2023. So, there are interesting things and can be a reference to be able to see how much business potential exists in the logistics industry.

Based on existing data until June 2022, the total population of Indonesia is 275,361,267 people. With such a large population, we can be sure that the demand for the needs for the consumption of all Indonesian people is quite large.

Even though from a data point of view, we hope that with the high number of distribution channels that must be run by logistics service companies in Indonesia, a recession for the logistics industry will not occur.

However, special attention is needed for logistics industry players in Indonesia. That the logistics industry needs to strengthen by increasing efficiency related to the supply chain in order to reduce dependence on supplies from abroad.

In addition, insurance guarantees are needed in logistics operations. The insurance required is Marine Cargo Insurance. Logistics companies need to ensure that every item delivered is covered by insurance. 

For large and frequent shipments of goods, the most suitable insurance program is the Marine Open Policy (MOP). But keep in mind that the logistics company is only the organizer of the MOP while the insured or guaranteed is the owner of the goods, therefore the name of the owner of the goods must be included in the policy. 

To be able to arrange MOP insurance coverage for logistics companies by utilizing the services of an insurance brokerage company that is experienced in logistics.

The insurance broker will arrange the program based on the information provided by the logistics company, then arrange the best insurance program according to your needs. 

After that, the insurance broker will negotiate and choose the best insurance company. Insurance brokers are also responsible for handling claims if they occur.

Insurance brokers experienced in marine cargo insurance are L&G Insurance Brokers. Call now!

Source : 

• https://www.kompasiana.com/achmad94518/63688c6712d50f7e992e82a2/potential-dan-kendala-pengembangan-industri-logistik-tahun-2023 
• https://swa.co.id/swa/trends/industri-logistik-diprediksi-tumbuh-di-tengah-ancaman-resesi-2023 
• https://kfmap.asia/blog/peluang-dan-tantangan-sector-logistik-indonesia-di-2023/2363 

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