Across the industrial complex of business, commerce, industry, health, hospitality, manufacturing, and social services, and service, each have been categorized and segmented, to denote their interaction and connection and reliance on each other.
For example how the service industry is classified under the tertiary sector, because the tertiary sector offers services instead of goods, such as administrative services, banking and financial services, healthcare, hospitality, insurance, legal services, logistics, the media, restaurants, retail and wholesaling, telecommunications, tourism, and transportation. These industry classifications and interconnections will be discussed in depth in this blog:
In addition and including the tertiary sector, there are three other recognized industry sectors - primary, secondary, and quaternary. The following unpacks and defines key components of these industrial sectors:
The primary industry produces goods or products that are not processed, or are in their raw form, such as agriculture and fisheries, forestry, and livestock are considered to be core examples of the primary industry.
The secondary industry is the industry that processes the products generated by the primary industry, to produce finished, or ready-to-use products, such as construction, energy production, manufacturing, and processing.
The quaternary industry sector is based on science and technology, providing expertise and information - intellectual industries that offer information services such as computing, consulting, research, and development.
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The demographic construct of Indonesia is complex and complicated, exacerbated by its large population, which in 2025 sits at 283+ million, making the archipelago the world’s fourth largest country population-wise, behind India (1.450+ billion), China (1.419+ billion), and the United States of America (345+ million) and counting.
This demographic factor of Indonesia, of which there are 137+ million males to its 134+ million female population can be deconstructed and utilized to develop a variety of service industries. Moreover, geographically, Indonesia's demographics show that over 56% of the total population resides on the island of Java, with its West Java Province inhabited by 47+ million inhabitants, as opposed to the smallest population of this sprawling island nation found in Indonesia’s North Kalimantan, where 692+ thousand people live. Updated statistics from 2025, so change this graphic image to suit?
During the COVID-19 pandemic, the densely populated island nation of Indonesia saw an operational increase of a specific service industry - express delivery and logistical services, with Indonesia’s Indonesian Logistics Association (ALI) reporting that the flow of shipment through the archipelago increased by 40%. This marked increase was largely driven by the increased consumer and governmental demands for everyday consumer goods, medical equipment, and pharmaceuticals, heightened by the quarantines created to address the spread of the pandemic.
Mahendra Rianto, Chairman of the Indonesian Logistics Association (ALI), discussed with Jakarta media start-up Katadata, that the logistics industry could be divided into three delivery stages - first-mile, mid-mile, and last-mile delivery services, with the industry focused on supply chains and logistics. These delivery services are explained as follows:
1. First-mile delivery refers to transporting raw materials to factories to support the production process of goods;
2. Mid-mile delivery refers to the transportation of finished products from factories to retail stores; and
3. Last-mile delivery refers to the direct delivery of goods from retail stores to consumers.
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Moreover, Rianto noted that the most significant increase in the flow of goods and services occurred in the last-mile delivery stage, boasting a growth rate of between 30 and 40%.
This rapid increase was mainly because many pharmaceutical outlets marketed their products using e-commerce or other online and social media platforms. Consumers realized this increase by placing orders, with their direct delivery usually conducted by online motorcycle taxis.
However, Rianto also mentioned that there was a noticeable decline in the flow of goods and services by mid-mile and last-mile delivery services, particularly during the COVID-19 pandemic, the decrease being attributed to the lockdown protocols and regulations in several nations.
These explanations could be a deciding consideration for those entrepreneurs looking for business opportunities in the service industry, particularly in last-mile delivery-logistics service.
Indonesia’s ongoing e-commerce boom has significantly contributed to the growth of the logistics industry, particularly that of express delivery services. This increase was amplified during the COVID-19 pandemic because of the vital role that express delivery services played, the essential services contributing to and supporting the Indonesian economy.
This increase was confirmed by M. Feriadi, Chairman of the Indonesian Express Delivery Services Association (Asperindo), who revealed to Indonesia’s pioneering online media company Kompas.com that during the first semester of 2021, the national volume of express deliveries increased by around 30% when compared to the same period of 2020.
Indonesia’s logistics industry continues to grow unabated because traditional consumer shopping habits have shifted from conventional brick-and-mortar locations to the virtuality of online shopping via various e-commerce platforms, which in turn has led to a cognitive shift in delivery trends, from more inter-provincial shipment deliveries to more inner-city deliveries, a fact confirmed by M. Feriadi, Chairman of the Indonesian Express Delivery Services Association (Asperindo).
If, as an entrepreneur, you are considering entering and investing in logistics and service delivery, particularly local deliveries, you should investigate this opportunity in more detail.
If you are considering entering the logistics and delivery service industry, consider starting with local delivery services because there are many opportunities to become involved at this juncture and join the 367 members nationwide, already associated with the Express Delivery Services Association (Asperindo). However, to do so, you must invest in storage space and/ or warehouses, human resources, work tools, and a 24/7 operational system, which requires compatibility and readiness in information and communication technology (ICT).
The digitization and digitalization of Indonesia’s service industry are currently underway, as more service providers are transitioning their services to digital formats or are becoming digital platforms for product sales, such as online education and healthcare services, online courses, and telemedicine.
Bisnis.com, the online version of Bisnis Indonesia Daily, a member of Bisnis Indonesia Group of Media (BIG Media) and the largest Indonesian business navigator, and provider of financial news, market insights, and industry-related information, reported that the service delivery industry experienced rapid growth throughout the pandemic, with a 10.91% increase in the fourth quarter of 2020 (Q4/2020), compared to 9.78% in the same quarter of 2019.
These statistics have been supported by research conducted by Google, Temasek, a Singapore-based global investment company that has a stake in the well-being of the wider community, and Bain and Company, a Boston-based management consultant company, with their research indicating that 37% of digital service consumers were new users in the previous year, with 93% of them planning to continue using digital, digitized, and digitalized services in today’s post-pandemic world.
It has been anticipated that trade services will continue to develop as consumer shopping habits shift from traditional, brick-and-mortar entities to the virtuality and convenience of online shopping. This transition has been noted, with reports stating that since 2018, the number of digital consumers in Indonesia alone has increased by 35 million individuals, the number of visits to online stores increased by 30%, with consumer consumption increasing by 40% when compared to data from the previous financial year. These numbers were collated from Facebook (Meta) and management consulting company Bain and Company,
With a population of over 272 million people, the service industries of Indonesia have great opportunity and potential for development; business opportunities that can be started immediately, with little, or minimal outlay and expenditure.
Moreover, you do NOT need to be concerned or worry about the how's and why’s of digitization and digitalization, or the operational management of the services that you will market to the public.
Rather, you can join Teman Youtap to effectively manage your business with the Solusi Usaha application. For more information to get you started with your delivery system and logistics business, visit the Mulai Usaha website today.
Don’t delay and become a part of a dynamic network of like-minded go-getters, supported by Youtap, a pioneering Fintech ready to help you realize your business potential.
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