Pos Indonesia to focus on logistics<\/p>\n
Rendi A. Witular, Jakarta<\/p>\n
State-owned mail company PT Pos Indonesia plans to focus on
\nthe logistics business for the domestic market due to a general
\ndownward trend in direct mail business, due to easier
\navailability of electronic mail or e-mail, the company's senior
\nofficial said.<\/p>\n
The company is also planning to sell some of its shares in
\ninternet service provider (ISP) subsidiary, PT Bhakti Wasantara
\nNet, via an initial public offering scheme (IPO) next year.<\/p>\n
Pos Indonesia president director Alinafiah said the company's
\ndecision to focus on domestic logistics management was primarily
\ndue to the sensational growth of the business, which has reached
\nan average growth of 100 percent in the past couple of years.<\/p>\n
\"Direct mail business will become an old song for us. We are
\nplanning to revise the position of our company to become a main
\nplayer in domestic logistics services,\" said Alinafiah after a
\nhearing with the House of Representatives Commission V for trade,
\nindustry and state companies.<\/p>\n
Alinafiah said revenue from the company's existing logistics
\nbusiness grew by almost three times to Rp 199.3 billion (US$23
\nmillion) in the first semester of this year, up from Rp 66.78
\nbillion in the same period last year.<\/p>\n
To support the expansion, Pos Indonesia plans to allocate some
\nRp 100 billion each year for enhancing infrastructure.<\/p>\n
\"We are optimistic that we can compete with the already
\nestablished players, given the fact that we offer better prices,\"
\nsaid Alinafiah.<\/p>\n
Pos Indonesia expects revenue from the expanded services to
\ncontribute around 40 percent of the company's total revenue
\ncomposition by 2007. At present, logistics management only
\naccounts for about 23.11 percent of the composition, with mail
\nand communication accounting for 57.43 percent and other business
\naccounting for the remaining 24.32 percent.<\/p>\n
Alinafiah reiterated that there was currently a decline in
\ngrowth in the regular mail business, which only grew by an
\naverage of 5 percent in the last couple of years. Alinafiah
\nrefused to disclose the precise growth figures in terms of
\nrevenue.<\/p>\n
Pos Indonesia is currently struggling to profit after it
\nposted a loss of Rp 20.38 billion last year. The company said
\nthat was mainly due to soaring operational costs, which resulted
\nin a decline in the number of mail users. The company recorded an
\noperational revenue of Rp 1.07 trillion last year.<\/p>\n
In 2002, the Bandung-headquartered company booked an
\noperational revenue of Rp 1.02 trillion and a net profit of Rp
\n41.83 billion.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pos-indonesia-to-focus-on-logistics-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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