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The First Quarter of 2019 Booming Logistics Sector Investment, Foreign Dominant

Chika JIC - Tuesday 14th 2019


The realization of investment in the transportation, warehousing and telecommunications sectors that represent the transportation sector and supporting the logistics grew significantly in the first quarter of 2019 to Rp37.3 trillion compared to the first quarter of 2018 which was only Rp14.7 trillion. This realization is dominated by foreign investment which has quadrupled.

The data released by the Indonesia Investment Coordinating Board (BKPM) shows that the realization of investment in the transportation sector and logistics grew significantly, especially from foreign investment, which only US$ 327.9 million in the first quarter of 2018 increased to US$ 1.64 billion in the first quarter of 2019. Acting Deputy of Investment Implementation Control, Farah Ratnadewi Indriani said, this sector was mainly growing due to the realization of toll road construction activities.

Supply Chain Indonesia (SCI) rate, investment in the logistics sector will continue to attract over the next few years, especially for foreign investors. SCI General Chair Setijadi said, the realization of investment in the sector that represents the logistic jumped significantly, especially because of the pull of Indonesia's logistics sector in the form of large volumes or values and high growth rates. foreign investors in the sector logistic increased in line with the revised Negative Investment List which opened wider foreign investment. Meanwhile, another driving factor is the growth of e-commerce businesses that require the support of logistical facilities such as warehouses and transportation fleets.