Trade is one of the key drivers of a nation’s economy. This sector not only determines consumption levels but also makes a major contribution to Indonesia’s economic growth.

Conversely, changes in consumer behavior also shape the growth of the trade sector. The rising demand for goods and services fuels the overall expansion of this sector.

Data from Indonesia’s Ministry of Finance (Feb 2023) shows household consumption climbed from 2% in 2021 to 4.9% in 2022.

This growth boosted the trade sector to 5.5%, while national GDP reached 5.3%—up from just 3.7% in 2021.

These figures confirm that trade is the “lifeblood” of Indonesia’s economy. With such vast potential—and modern lifestyles pushing consumption higher—trade remains one of the most attractive sectors.

Yet, trade success relies heavily on supporting sectors, particularly logistics, which ensure goods move smoothly, effectively, and efficiently.

Logistics Services Vs. Freight Forwarding: What’s the Difference?

Logistics is an inseparable part of the distribution chain. For businesses, particularly those involved in export-import and inter-island distribution, understanding the distinction between logistics and freight forwarding is crucial.

1. Logistics Services

Primarily focused on domestic or local deliveries.
Services include delivery time estimates, cost, route planning, and service coverage.
Offers door-to-door or door-to-port solutions to make things easier for customers.
Typically handles shipment under 10 tons.

2. Freight Forwarding

Specializes in international shipments (export-import).
Beyond shipping, freight forwarding covers warehousing, customs clearance, tax handling, and end-to-end logistics management.
Requires more complex licenses, such as Sea Freight Forwarding (EMKL) and Air Freight Forwarding (EMPU), as well as other regulatory documents.
Generally manages shipment above 10 tons.

Logistics and Freight Forwarding Market Trends

Indonesia’s logistics market is projected to grow at a CAGR of 4.45% to 6.84% from 2025 to 2033. Market value is expected to rise from USD 39 billion in 2024 to USD 57.7 billion by 2033. (Source: IMARC Group).

Meanwhile, Indonesia’s combined freight and logistics market is projected to grow from USD 119.45 billion in 2024 to USD 152.54 billion by 2031, at around 5% CAGR. (Source: Verified Market Research).

Globally, freight forwarding is forecast to grow from USD 207.1 billion in 2024 to USD 267,9 billion by 2029, at a CAGR of 5.6%. (Source: researchandmarkets.com).

In Indonesia, local freight forwarding is projected to exceed USD 700 million between 2024 and 2029, fueled by rising export-import flows to Asian markets. (Source: bonafideresearch.com).

The Importance of Choosing a Trusted Logistics Partner

Understanding these differences enables bussineses to select the most suitable logistics partner for their specific needs. Still, the accurate measure of success lies in the quality of the logistics provider.

One strong option is SELOG, a business line of PT Serasi Autoraya (SERA)—part of the Astra Group—with over 20 years of expertise in logistics.

SELOG delivers complete end-to-end logistics solutions, from Trucking, Shipping, and Freight Forwarding to Warehousing and Project Cargo.

Every SELOG service is powered by Astra Fleet Management Solution (AstraFMS), delivering convenience, efficiency, and cost-effectiveness.

With AstraFMS, SELOG offers advanced, IT-based solutions for managing fleets and transportation across Indonesia.

For more information, visit www.selog.astra.co.id or call us at (+6221) 26605333.

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