FOR MARKETING PERSPECTIVE -- May 11 (Tuesday)<\/p>\n
RI remains important makert for major courier companies<\/p>\n
Rudijanto
\nContributor
\nJakarta<\/p>\n
While the country struggles to boost its exports, and prepares
\nfor its first-ever direct presidential election, the local market
\nremains promising for international and domestic courier and
\nexpress-delivery companies.<\/p>\n
Despite the predicted slight growth of the country's economy
\nto 4.5 percent this year from 4.1 percent last year by the Asian
\nDevelopment Bank (ADB), courier and express-delivery companies
\nhave every reason to remain upbeat.<\/p>\n
Chairman of the Association of Indonesian Express-Delivery
\nCompanies (Asperindo) Johari Zein was quoted by Bisnis Indonesia
\nas predicting that the domestic express-delivery business would
\nboom this year, due to strong demand from political parties and
\nthe General Elections Committee (KPU).<\/p>\n
Founded in 1986, Asperindo has over 500 private companies with
\n2000 branches across the nation. The association's members
\ncomprise three categories in line with their scope of operation,
\nnamely international-oriented, domestic-oriented and inter-city
\noriented companies.<\/p>\n
The general election is considered one of the biggest
\nlogistical operations in the nation's history. Johari earlier
\nexpected the election to increase the volume of services by
\nexpress-delivery companies by 20 percent.<\/p>\n
KPU appointed four major courier companies, namely state-owned
\nPT Pos Indonesia, PT Sentra, PT Pandu Siwi Sentosa and PT Aneka
\nJasa Putra Tama. While small players that provide inter-city
\nservices also enjoyed the high demand.<\/p>\n
\"Next to the Idul Fitri, Christmas and New Year holidays, the
\ngeneral election also provided a big opportunity for our business
\ndue to increasing demands for the faster delivery of documents
\nand goods,\" said M. Lestari, a branch manager of local inter-city
\ncourier company Jalur Nugraha Express as quoted by the Suara
\nMerdeka daily.<\/p>\n
Not only domestic players feel upbeat about business prospects
\nthis year, international giants, such as FedEx, consider
\nIndonesia part of the fast-moving Asia-Pacific region, and a very
\npromising market.<\/p>\n
\"FedEx views the Indonesian market as an excellent place to do
\nbusiness. The nation forms an integral part of our business in
\nAsia, and we believe that the Asia-Pacific region continues to be
\na magnet for export activities,\" said Ramesh Kumar Singham,
\nmanaging director of FedEx Express for Indonesia and Singapore.<\/p>\n
Like other major courier companies, the United Parcel Service
\n(UPS) is also upbeat about the prospects of the courier market in
\nIndonesia, one of the largest economies in the Asia Pacific.<\/p>\n
The United States-based UPS, which is one of the world's major
\ncourier companies and a global leader in supply chain solutions,
\nhas spent a lot of money both in technology and in opening new
\nbranches to take advantage of the growing courier market in the
\ncountry.<\/p>\n
Even though UPS's focus is on the international market,
\nbuilding branch offices in Indonesia's major cities is seen as an
\nimportant strategy to provide local businesspeople easy access to
\nits services.<\/p>\n
With new technology and a fleet expansion, UPS customers are
\nguaranteed that their packages will arrive on time. The company's
\nlatest technology also enables customers to track their packages
\nthrough UPS's website within a matter of seconds.<\/p>\n
Chairman of the National Economic Recovery Committee -- who is
\nalso the chairman of the Indonesian Employers Association
\n(Apindo) -- Sofjan Wanandi, expects exports will remain stagnant
\nthis year due to a lack of policy that supports a significant
\nincrease. Although, he believes the value of the country's
\nexports is still huge for courier and logistics companies.<\/p>\n
The country's central bank, Bank Indonesia (BI), estimates
\nexport figures in the first quarter this year to drop, due to
\nmainly a decline in oil and gas exports. However, BI expects non-
\noil and gas exports will still grow by 0.2 percent to US$12.02
\nbillion as compared to the same period of last year.<\/p>\n
Indonesian exports reached US$61.023 billion last year. This
\nexport figure shows a slight increase compared to 2001 and 2002,
\nwhen exports did not exceed US$60 billion. Last year's export
\nfigure was close to the country's export figure in 2000, which
\nwas US$62.124 billion.<\/p>\n
With the recent relatively smooth election for legislative
\nmembers, courier and logistics companies expect the presidential
\nelection will bring stability to the country, and thereby provide
\na good climate for the economy in general, including for exports.<\/p>\n
As part of the fast-growing Asia-Pacific region, Indonesia has
\na lot to offer. That is why FedEx firmly believes the country
\nwill play a significant role, especially given the role of
\nexports in the Indonesian economy.<\/p>\n
\"FedEx's business in Asia-Pacific for the third quarter of the
\n2003-2004 financial year recorded a 22 percent year-over-year
\ngrowth in daily package volume. This is a fantastic result that
\nhighlights not just the strength, but also the importance of this
\nregion for our international business,\" said Ramesh.<\/p>\n
As an international giant in the express-delivery and
\nlogistics service, FedEx is strengthening its position in
\nIndonesia. FedEx flies its own fleet of 643 aircraft and connects
\nIndonesia to the world through its daily flights.<\/p>\n
The company provides custodial control from pick up to
\ndelivery. This service is aimed at manufacturers with high value
\nand time sensitive products, who require a fast and reliable
\nservice to deliver their goods to the market.<\/p>\n
Other services include a time-definite, premium airfreight
\nservice for international shipments; the delivery of bulk
\nshipments from one point to multiple addresses in one country;
\nand the delivery of smaller packages, such as documents, for
\nitems requiring next-day delivery to 215 countries worldwide.<\/p>\n
Another international heavyweight player in express delivery
\nand logistics service -- DHL -- even considers Indonesia a vital
\ncomponent of the company's regional growth strategy. The company
\nsees the country's wealth of natural resources, huge population
\nand large business base as key factors that make Indonesia one of
\nthe biggest economies in the region.<\/p>\n
\"Having been in this country for more than 30 years now, we
\nknow that Indonesia will continue to remain a major economy in
\nthe region and that long-term growth prospects are excellent. A
\nnumber of sectors, such as manufacturing and export, are
\nregistering strong growth, and this presents us with very good
\nopportunities to further develop our business,\" said Edi
\nPrayitno, DHL's business development manager.<\/p>\n
Like FedEx, DHL also operates its own dedicated flight to and
\nfrom Singapore using a Boeing 727 freighter that has a capacity
\nof 23 tons. The aircraft flies four times a week in order to
\nprovide services for Indonesian businesses.<\/p>\n
With this great confidence in the Indonesian market, DHL has
\nlaunched a new service -- Express Pallet -- that offers a new
\nfixed-price packaging and transport solution designed to match
\nreal-time distribution systems, as well as specific packaging
\nconfigurations from 50 kilograms up to 100 kilograms.<\/p>\n
This new door-to-door service, which is available from
\nIndonesia to 220 destinations worldwide, is especially aimed at
\nindustries, such as automotive, clothing and textile, leather,
\nelectronics, as well as oil and gas. Initially, DHL Express
\nPallet is available outbound from Jakarta, Batam, Surabaya and
\nBali.<\/p>\n
The heart of DHL's Express Pallet is a strong, yet highly
\nversatile pallet box with a base measuring 790 mm by 790 mm. This
\nbox can be configured to accommodate shipments from 470 mm up to
\n810 mm in height. In its largest configuration (790 mm x 790 mm x
\n810mm) the DHL Express Pallet has a load capacity of 100
\nkilograms.<\/p>\n
Aware of the potential of the overseas delivery service, local
\ncompany PT Citra Van Titipan Kilat Indonesia (TIKI) has also
\nexpanded their international network. Last February, the company
\nsigned a strategic partnership agreement with Malaysia-based
\nNationwide Express Courier Services Berhad. Like Nationwide
\nExpress, TIKI is also strengthening its international express
\nservices. TIKI will continue to set up a number of indirect
\nalliances with selected express companies to serve their valuable
\nexisting and potential customers, as well as direct alliances
\nglobally.<\/p>\n
In spite of ADB's forecast of minute economic growth for this
\nyear and flat growth in 2005, local, as well as international
\nexpress-delivery and logistics companies, continue to deepen
\ntheir roots here. Being one of the biggest countries in the
\nAsia-Pacific region, the Indonesian market is simply hard to
\nignore; particularly in the long run.<\/p>",
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