Hence, local players have to work hard to survive and implement various strategies to grab a share of the market. While the majority of logistics companies are local, about 75 percent of the business volume is dominated by foreign companies. Meanwhile, Indonesian Logistics Association (ALI) records show that there are over 300 companies in Jakarta, while Association of Indonesian Forwarders and Expedition Companies (Gafeksi) data indicates that there are more than 3,000 such companies throughout the country. The Express Couriers Association of Indonesia (Asperindo) has noted that there are more than 900 companies in this business, but only 100 or so are registered with the association. Therefore, the number of players in this huge market is also increasing, including those that only offer basic services, such as courier, warehousing and distribution up to the most sophisticated services that provide integrated services called total logistics solutions. Meanwhile, full services - those include warehousing, consultation and shipment tracking - will grab 10 percent of the market share by 2012 with a volume totaling $280 million with a 22.5 percent growth in market share starting from 2005. The growth of advanced services is estimated to reach 16.7 percent from 2005 until 2012. This type of services is next to the classic services but include pickup, labeling and testing services. Logistics services that are categorized as advanced services are estimated to have a business volume valued at $550 million or 20 percent of the market share. Classic outsourced services cover warehousing, delivery management and distribution. In 2012, classic outsourced services will dominate the logistics market with a 70 percent share with a total volume value of $1.93 billion. Based on research by Frost & Sullivan Asia Pacific, the logistics market in Indonesia will reach an estimated value of US$2.76 billion in 2012, which is an average increase of 12.1 percent annually starting from 2008.
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