The global freight forwarding association FIATA said it is optimistic about Indonesia’s logistics and supply chain sector in 2026, citing the industry’s resilience amid global disruptions this year and steady domestic demand.
The International Federation of Freight Forwarders Associations said Indonesia’s logistics sector continued to expand in 2025 despite heightened geopolitical tensions and trade conflicts that weighed on global supply chains.
“The sector has shown strong resilience this year, even as geopolitical risks and trade wars affected demand globally,” said Yukki Nugrahawan Hanafi, FIATA’s senior vice president and chairman of the advisory board of Indonesia’s logistics association ALFI.
“Logistics has continued to grow and contributed to Indonesia’s economic expansion of around 5%, providing a solid base going into 2026.”
Data from Indonesia’s statistics agency showed the logistics supply chain, including warehousing and transportation, grew by 9.01%, 8.52% and 8.62% in the last three quarters of 2025, contributing about 6.08% to gross domestic product.
Yukki said domestic factors would be the main drivers of growth next year, led by stronger household consumption and purchasing power, along with the government’s 2026 budget growth target of 5.4%.
He pointed to ongoing government initiatives such as the Red and White Cooperative programme, the free nutritious meals scheme, and liquidity injections into the banking system, which he said were expected to generate multiplier effects across the economy, including logistics.
Signs of strengthening consumption were already visible, Yukki said, noting that Indonesia’s manufacturing purchasing managers’ index rose to an expansionary level of 53.3 in November, while the consumer confidence index rebounded sharply in the second half of 2025.
“We believe this momentum will continue to support domestic spending and logistics demand next year,” he said.
However, FIATA cautioned that risks remain, particularly from renewed geopolitical tensions and rapid technological disruption.
“Despite strong domestic fundamentals, uncertainty following the trade war has reshaped the global economic ‘new normal’ and continues to fuel geopolitical conflict,” Yukki said.
“At the same time, artificial intelligence is being adopted rapidly in the logistics industry, especially by multinational companies. Indonesian logistics players need to adapt quickly to remain competitive,” he said further.