Indonesia's Cargo Market Set for Significant Growth by 2025
Indonesia’s cargo market is expected to experience significant growth by 2025, driven by substantial government investment in infrastructure and the logistics sector. The market size is projected to reach approximately USD 152.54 billion by 2029, with a compound annual growth rate (CAGR) of 5.01% during 2024-2029. This growth is supported by the government’s strategic initiatives to improve logistics efficiency, which include reducing logistics costs from 24% to 17% of GDP by 2024.
In 2025, Indonesia’s GDP is forecasted to grow by 5.2%, with the government planning a budget of IDR 3,613.1 trillion (about USD 230 billion). This budget reflects a continued commitment to infrastructure development, which is crucial for sustaining the momentum in the freight and logistics market. The transportation and storage sectors have already shown impressive growth, with a year-on-year increase of 36.68% in 2022, largely due to increased mobility and investments in transportation infrastructure.
These factors indicate a robust outlook for the cargo market in Indonesia, positioning it as a key driver of economic growth in the coming years.