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Identifying Distribution Centre Location for Indonesia’s Export in Eastern and Southern Africa Market
Economic diplomacy is a key priority of Indonesia’s foreign policy, aimed at stimulating national economic growth by expanding exports, particularly to non-traditional markets. A study conducted by the Ministry of Foreign Affairs in collaboration with Indonesia Eximbank Institute identified Africa as a potential market based on indicators including economic growth, population, gross domestic product, imports, global competitiveness, and the business to consumer e-commerce index. Focusing on Eastern and Southern Africa, this paper seeks to determine the most suitable location for a distribution center to improve the availability and efficiency of Indonesia’s export supply chains. Establishing a regional distribution hub is expected to bring Indonesian products closer to destination markets, reduce logistics costs, and improve delivery efficiency. The findings indicate that South Africa offers the strongest performance as a distribution center location, supporting Indonesia’s efforts to expand its export presence in the region.
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