Indonesia's Logistics Updates: April 2024 Edition

Indonesian Economy in Q1 2024 Grows 5%

Ramadan and Eid al-Fitr in 2024 are expected to drive the Indonesian economy's growth in the first quarter (Q1) of 2024 to exceed 5%. Josua Pardede, the Bank Permata economist, predicts that the Indonesian economy in Q1/2024 will grow by around 5% to 5.1%. Josua explained that the Indonesian economy's growth in the first quarter of this year will be driven by several factors.?

Firstly, the increase in government spending, particularly in the distribution of social assistance and the implementation of elections. According to records, the national budget up to March 15, 2024, increased by 18.1% compared to the same period last year. This increase in government spending is expected to boost economic activity and stimulate consumer demand.

Secondly, the growth is due to the low-base effect, as the long Ramadan period, which was in April last year, has shifted to March this year. This shift has resulted in a shorter Ramadan period in 2024, which is expected to have a positive impact on economic growth. In addition, Ramadan and Eid al-Fitr are expected to contribute to economic growth by 0.14 to 0.25 percentage points.

However, the rising inflation trend due to rising food prices could be a hindrance to the Q1/2024 economic growth, as it may affect the purchasing power of the public. Factors such as bonuses, Religious Holiday Allowance (THR), and wage increases can counteract the decline in purchasing power due to inflation, particularly for the middle class. To maintain the growth momentum, the government should start designing policies to support the purchasing power of the middle class and quickly reduce food inflation.

(Read more on ekonomi.bisnis.com)

Indonesia's Q1 Economic Growth Boosts Business Opportunities

The Indonesian economy's growth of 5% in Q1 2024 has a significant impact on businesses operating in the country. The increase in government spending, particularly in the distribution of social assistance and the implementation of elections, will boost economic activity and stimulate consumer demand. This presents opportunities for businesses to expand their operations and increase their customer base. Additionally, the low-base effect, resulting from the shift of Ramadan and Eid al-Fitr, will contribute to economic growth, leading to increased consumer spending during these festive periods.

How Shipper Supports Businesses

We, at Shipper, support businesses in Indonesia to take advantage of the economic growth during the advantageous moments such as Ramadan and Eid al-Fitr. With end-to-end logistics and contract logistics services, Shipper helps businesses optimize their supply chain operations, ensuring timely delivery of goods and services to meet the increased demand during these festive periods.

Here's how we can support businesses:

1. End-to-End Logistics

Shipper's end-to-end logistics services cover various aspects of the supply chain, including transportation, warehousing, and distribution. By leveraging advanced technology and a vast network of logistics partners, Shipper ensures that businesses can efficiently move their goods from the source to the destination, minimizing the risk of delays and disruptions. This is particularly crucial during crucial moments such as Ramadan and Eid al-Fitr, when businesses experience a surge in demand for their products and services.

2. Contract Logistics Services

In addition to end-to-end logistics, Shipper also offers contract logistics services. These services help businesses expand their operations by providing them with a dedicated logistics team and infrastructure. This allows businesses to focus on their core competencies while Shipper handles their logistics needs, enabling them to scale their operations and reach a larger customer base during the festive periods.

Discover how Shipper can help your business thrive during the peak demand periods. Contact us today at shipper.id to learn more about our end-to-end logistics and contract logistics services.