The rapid growth of Indonesia’s logistics has intensified the demand for robust logistics capabilities, particularly among third-party logistics (3PL) providers. Despite their strategic role in enabling supply chain performance and customer satisfaction, limited empirical research has investigated how these capabilities are built, maintained, and challenged in emerging market contexts. This study aims to explore the key dimensions of logistics capability within Indonesian 3PL firms. Using a qualitative exploratory design, we applied the Gioia methodology to analyze data from semi-structured interviews with senior managers from five large Indonesian 3PL companies. Our findings reveal six interconnected dimensions of logistics capability: operational logistics, customer orientation, information management, internal integration, innovation, and green logistics & compliance. These capabilities are underpinned by firm resources such as skilled human capital, advanced IT systems, and logistics infrastructure. However, their development is often constrained by external and internal pressures, including regulatory uncertainty, uneven infrastructure development, digital transformation gaps, workforce shortages, and the fragmented structure of the Indonesian logistics market. This study offers a context-sensitive understanding of logistics capability in practice, shedding light on how firms in emerging economies navigate institutional and operational complexities. Drawing from the resource-based view and dynamic capabilities theory, this research contributes to logistics scholarship and managerial practice. The insights are valuable for logistics practitioners aiming to enhance performance and policymakers designing frameworks to support capability development in the evolving 3PL sector of Indonesia.