ASEAN logistics systems demand will grow

Subject

ASEAN logistics systems demand and development.

Significance

Indonesia has eased barriers to foreign investment in transport and cargo services as competition grows in ASEAN's booming logistics market. On February 17, President Joko Widodo promised further investor-friendly reforms, decrying "excessive" regulation. Foreign expertise will be needed to help the region cope with overloaded freight systems and increasingly complex supply chains that are experiencing rapid growth due to closer economic ties, rising incomes and retail innovation.

Impacts

• Demand for more modern freight handling systems will accelerate foreign investment reforms within ASEAN.
• Most incoming investors will forge partnerships with domestic operators to tap into local knowledge.
• Congested infrastructure will spur growth in specialist innovative solutions, including third-party logistics services.