At LogiSYM Platinum Indonesia 2025, Intramega Global had the privilege to share our perspectives on how Indonesia’s logistics sector is evolving. 

Through the session “Futurescape: Trends and Reality in Logistics”, our Director, Andi Wibisono shared about Indonesia’s economic situation, operational challenges, the shifting role of warehouses, and the multifaceted transformation in shaping the future of logistics. 

If you couldn’t attend the event, no worries! 

Here are the five key highlights from the session.

#1 Manufacturing, Trade & Retail, and Agriculture Industries are Growing Despite Global Uncertainty

The current economic environment may be filled with uncertainty, yet according to Statistics Indonesia, several industries are growing strong in 2025:

A. Manufacturing Industry
Driven by increasing domestic and export demand:

• Food & Beverage: Grew 6.49%, boosted by demand for CPO and its derivatives
• Basic Metals: Grew 18.62%, high demand for iron & steel exports
• Chemicals & Pharmaceuticals: Grew 11.65%, due to the rising need for health-related raw materials 

B. Trade & Retail Industry

Local brands grew strongly post-pandemic:

• Retail Sales Index up 4.3% y-on-y, boosted by Food, Beverages, and Tobacco, Cultural and Recreational Goods, and Other Household Equipment
• Online transaction volume up 6.19% q-to-q 

C. Agriculture

Driven by an increase in domestic demand:

• Food Crops: Grew 9.94%, supported by the expansion of rice cultivation area
• Plantation Crops: Grew 4.56%, driven by higher production of palm oil and coffee
• Livestock: Grew 6.51%, increasing demand for chicken and eggs to support MBG program

2. Logistics Costs Remain Extremely High,A Wake-Up Call for Efficiency

One of the biggest challenges Indonesia faces is high logistics cost, currently recorded at 23% of GDP, that is 2x higher compared to developed country (8-10% of GDP) 

Several factors contribute to this: 

• Rising import costs as the Rupiah weakens 

• High reliance on manual operations, making it difficult for companies to optimize and forecast accurately 

• Lack of integrated logistics infrastructure, esp. in inter-island movements that leads to inefficiencies 

This is a wake-up call for Indonesia’s logistics to become more efficient. 

Because in today’s environment, every inefficiency in warehouse or supply chain operations directly impacts margins.

3. Warehouses Are Transforming into High-Speed Fulfillment Hubs

E-commerce in Indonesia is growing very rapidly, and e-commerce promises speed and accuracy to its consumers. Since traditional warehouses may not be able to meet these requirements, esp. In Indonesia who has a lot of islands and the demand is not coming from Java Island alone. We see there is an increasing number of e-commerce hubs that can serve last-mile deliveries. 

That’s why, warehouses are no longer static storage facilities. They are now becoming high-speed fulfillment center. To meet these demands, warehouses should improve modern warehouses, improving visibility, accuracy, space utilization, and operational efficiency. 

4. Manual Operations, Skill Gap, and Investment Concerns are Still the Major Barriers to Digital Transformation 

Although the need for modernization is clear, companies often face three major barriers:

A. Manual Operations

Manual processes are highly risk in human error, limit visibility, scattered data that can’t be analyzed, and create inefficiencies that often go unnoticed until they impact performance.

B. Workforce Skill Gap

Many operators are still adjusting to digital tools and semi-automated systems. This requires structured training and upskilling to ensure smooth adoption.

C. Investment Concerns

Digitalization is often still seen as a cost, especially when companies haven’t fully recognized how ROI can also be realized through better space utilization, higher productivity, better accuracy, and improved customer experience. 

As Andi Wibisono emphasized, a warehouse can create far more value when it goes beyond storing inventory to also function as an e-commerce fulfillment center and a consolidation hub for retail distribution. 

“This is where we turn a traditional warehouse to store goods to become a multifunctional facility that can create more value for the company. So then, the investment is not just cost but we can also look at it as a new value creation to the business.”

5. The Future of Warehousing

There are four major warehousing trends that you should focus on in the coming years: 

A. Data-Driven Operations & WMS Foundation 

Warehouses are shifting from manual spreadsheets to fully integrated systems. This moves operations from reactive, to predictive, and autonomous. 

To enable this transition, more companies are adopting WMS to achieve real-time inventory tracking and visibility, order accuracy, cycle counting, efficient outbound execution, and seamless integration with ERP and automation systems. 

B. Scalable Automation

As warehouse complexity increases, automation is no longer optional. It becomes essential. Companies can begin their automation journey in stages, starting from: 

• Human-assisted tools: forklifts, RF handhelds 

• Semi-automation: conveyors, Vertical Lift Modules (VLM), pick-to-light systems 

• Full automation: AMR/AGV fleets, ASRS, shuttle systems, A-Frame 

1. Real-Time Tracking Through RFID

RFID adoption continues to accelerate globally, with 58% of warehouse leaders planning to deploy RFID by 2028 and the RFID sensor market projected to reach USD 50 billion by 2033.

Common applications of RFID include pallet and tote-bin tracking, automated cycle counts, and shipment verification.

C. Space Optimization

With warehouse land and rental costs steadily rising, maximizing existing space becoming more important. Popular solutions include high-density storage (Storeganizer), mobile shelving, and Vertical Lift Storage, particularly valuable for high-SKU environments, piece-picking operations, and facilities with limited room for expansion. 

So, What’s Next? 

To stay competitive, companies must transform their warehouses into efficient, technology-enabled, and scalable operations. 

By adopting WMS, optimizing processes, enabling real-time tracking, and implementing the right level of automation, organizations can dramatically reduce costs, improve service levels, and build a more resilient supply chain for the future. 

Intramega Global is here to help you plan, design, and implement end-to-end intralogistics solutions, from WMS, RFID to automation. 

Book your warehouse assessment session here:  +62 811 9121 231