The rapid growth of e-commerce in developing nations has been a catalyst to improving infrastructure.Despite the tremendous growth of e-commerce, the current supply-chain ecosystem in Indonesia is still poor and the sector lacks a number of key factors to support the ongoing growth. A World Bank report in 2018 mentioned that Indonesia’s Logistic Performance Index scored only 3.2 out of 6. Major issues that gave Indonesia the low ranking are lack of transportation infrastructure as well as red tape and complicated regulations, which result in a high-cost environment.As such, the country’s logistics sector is still behind its neighboring countries, such as Malaysia, Thailand and Vietnam, in terms of the sector’s competitiveness and efficiency. On the other hand, the highest-ranked country in ASEAN, Singapore, scored 4, with the highest score being timeliness and logistics competence. The Need for Greater EfficiencyBiggest problems include the nation’s inefficient clearance process and trade and transportation-related infrastructure. In terms of timeliness, Indonesia’s logistics are on par with Vietnam, which is the third-best within the ASEAN region with a 3.67 score. Even with a higher score than Indonesia, Vietnam will benefit from the demands that e-commerce puts on infrastructure. With e-commerce playing a key role in driving retail sales growth, the government will be incentivized to invest in projects that support e-commerce - and a big part of that is infrastructure. Warehouses Become Prime PropertyThe same can be said for nations around the world. From more sophisticated warehousing to improved last mile delivery, e-commerce is a force to be reckoned with.The growth in Indonesia’s e-commerce has continued to drive demand for better logistics space, which triggered more new developments. This prompted greater local and foreign investment in logistics.Big institutional investors like GIC and regional logistics developers such as LOGOS and ESR have expanded to Indonesia. After China, Indonesia is seen as the next big thing in Asia’s e-commerce market, and the logistics sector should benefit from it. It’s All About LogisticsThe development of technology and e-commerce has made a significant contribution to the improvement of logistics in both developed and growing nations. Without e-commerce, these complex logistics structures would never be implemented. One particular type of provider is an e-commerce enabler that provides end-to-end business management for online retailers. Fast Growing MarketsINDONESIA. In Indonesia the value of e-commerce was estimated to rise by 88 percent between 2015 and 2019 to a total of $21 billion. Google & Temasek forecast that the number will quadruple from $21 billion in 2019 to up to $82 billion by 2025. VIETNAM. Vietnam’s e-commerce market is forecast to climb 20 percent in the last quarter of 2020 to reach $12 billion by year end, according to a forecast by the Ministry of Industry and Trade (MoIT). The number of transactions rose 25 percent year-on-year during the first six months of 2020. The market size is expected to reach $35 billion by 2025, ranking third in Southeast Asia. MALAYSIA. Malaysia’s eCommerce market is worth US$ 4.3 billion, and is expected to double to $8.1 billion by the year 2024, at 14% CAGR. A report by Paypal found that Malaysians prefer online shopping primarily to save time and 90% of Malaysians expect their purchase to be delivered within a week. INDIA. E-commerce has transformed the way business is done in India. The Indian E-commerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. As of August 2020, the number of internet connections in India significantly increased to about 760 million, driven by the 'Digital India' programme.