Forecasting A Growth Trend With Untapped USD30 Million Market Size of Logistics Tech Solution In Indonesia Through Global Market Fit Programme
Updated At 01/12/2022
Near the end of November 2022, GPSFleet was chosen to go to Jakarta, Indonesia to be part of the Global Market-Fit Programme Indonesia 2022 organized by Malaysian Research Accelerator for Technology Innovation (MRANTI) & KUMPUL. The purpose of this trip is to create impact and drive value to the ecosystem of Indonesia.
Throughout the trip, we have verified the logistic problems with the Association of Logistics Indonesia. In fact, the logistics in Indonesia are often reported as having the highest cost in Asia. According to The Jakarta Post, the Gross Domestic Product (GDP) in Indonesia is accounting for 24% compared to other countries which only have 5%.
The reason for the high logistic cost is due to Indonesia’s manual way of handling the logistic orders. In Indonesia, 90% of the order matching is done offline and 80% of the deliveries are done manually. It has arisen as a problem, particularly during the COVID-19 crisis. The order is increasing during the pandemic time, yet the inefficient management has failed to afford these rising volumes.
As a logistics tech solution provider, we has contributed our ideas on how to optimize the logistic workflow. Our CEO, Micheal specifically shared with the team the topic of Cloud Transport Management System (TMS). The goal behind this system is to digitally transform the logistics into a high-efficiency process. We suggested building a network to connect all logistics companies and broadcast the delivery job to outsourcing drivers to handle the volume of deliveries.
The benefits of the system are numerous.
The visitation to Indonesia has come to the conclusion that there is a growing need for logistics tech solutions in the Indonesian landscape. By 2025, a USD30 million worth of market opportunity is forecasted. The logistics industry in Indonesia will be the next sector to emerge, yet there slow logistic verification problem still need to be resolved to fully realize its potential. We are optimistic about the future of logistics in Indonesia and believe technology will shape value for all parties.
GPSFleet is looking for partners together to venture into the Indonesian market. We welcome any of you from businesses, technology, logistics, transportation, and any related sectors who hold the same vision to join as a part of us. Feel free to leave your contact information and let’s talk over a cup of tea!