Indonesian Maritime Logistics Industry Welcomes New Startup: Titip

Singapore-based venture builder Wright Partners launches Titip, a business-to-business (B2B) marketplace focused on maritime logistics.

Titip's Business Development Manager Fernando Budiargo expects this startup as a catalyst for improving Indonesia's logistics capabilities, aiming for greater efficiency and reduced costs. "We aim to enhance the efficiency of logistics operations and drive down costs," Fernando said.

Despite its vast potential, Indonesia's logistics industry still lags behind its neighboring countries. According to the World Bank’s 2023 Logistics Performance Index, Indonesia ranks 61st, trailing behind Malaysia (26th), Thailand (34th), and Vietnam (43rd).

Wright Partners highlights that logistics costs in Indonesia are among the highest in the world, accounting for 23.5 percent of the Gross Domestic Product (GDP), surpassing Thailand's 14 percent and Vietnam's 18 percent.

Wright Partners' analysis attributes these challenges to several factors, including a mismatch between supply and demand in logistics, resulting in suboptimal ship utilization rates. Additionally, inefficient documentation processes contribute to the problem.

Moreover, the lack of digitalization in the commodity logistics sector, especially for shipping from remote locations, presents further obstacles. Titip aims to address these issues and provide effective solutions.