The Covid-19 pandemic has a bad impact on the business world. However, the e-commerce sector is still growing exponentially. This condition has an impact on the growth of the logistics sector.

Savills World Research Indonesia assesses that since its inception, e-commerce has shocked the local retail industry. This is driven by the rapid development of internet and mobile technology, this sector has experienced tremendous growth over the last decade.

"The e-commerce sector requires more logistics space compared to traditional retail because most of the retailer's inventory is stored in warehouses," said Director of Research Consultancy Savills Indonesia, Anton Sitorus, in a written statement, Wednesday (12/30/2020).

In addition, added Anton, online retailers tend to have more products in their inventory. "Thus, it requires relatively larger investors who can accommodate changing business trends," he added.

Anton said, despite experiencing tremendous growth, the current e-commerce and logistics sector in Indonesia is still far behind with neighboring countries. In fact, Indonesia's Logistics Performance Index only scores 3.2 out of 6.

However, Indonesia's e-commerce growth continues to drive demand for better logistics space, which is fueling more new developments. This has attracted a number of local companies as well as foreign and international investors and developers vying for first-mover profits.

Source :  https://www.beritasatu.com/ekonomi/714789/geliat-ecommerce-dorong-pertumbuhan-sektor-logistik