FedEx pledges to maintain services in Indonesia

JAKARTA (JP): International courier company Federal Express (FedEx) said on Thursday it had no plans to reduce its five-day-a-week direct flights to Indonesia despite the country's gloomy economic outlook.

Harsha E. Joesoef, president of FedEx's Indonesian affiliate PT Repex Perdana International, said the company would maintain its flights in order to take advantage of the growing exports from the country.

FedEx has operated direct flights to Jakarta five times a week using Airbus A310 aircraft since April last year.

"Our cargo space was fully utilized last year as we could take over the cargo market left vacant by other airlines which have reduced their flights. This year we expect a bigger growth," he said at a media briefing.

Harsha said FedEx currently handles about 34 tons of freight every day, an increase from about 20 tons of daily freight last year.

He said the company would focus on transporting non-document cargo, such as export goods, as document transfers are predicted to drop with the rapid increase in the use of sophisticated technology such as the Internet and e-commerce.

"Technology has improved very rapidly. In the next three to five years original documents will not be used much in business anymore. People will use air express services to deliver their non-document goods. So it is an opportunity to strengthen our position as the most reliable company delivering goods."

Harsha said FedEx is proud of the fact that it is the only air courier which operates its own fleets, while other air courier companies rely on commercial airlines.

Dave Pearson, senior technical adviser at Repex, said air courier companies had to offer special deals to compete in the country's tight market.

"Exporters are seeking not only the fastest but also the most reliable air express service. We, Federal Express, are ready to provide them with such a service," he said.

But Pearson said FedEx had no plans to add flights or to open more branch offices in Indonesia in the near future.

"What we have now are already sufficient to support our current business. But if business continues growing, we will consider adding more flights or using bigger aircraft."

Harsha said FedEx would open a new "more integrated" warehouse in Jakarta's Soekarno-Hatta airport in the next six months, in addition to its existing warehouse.

The new warehouse would provide customs and clearance services, he said.

PT Repex Perdana/FedEx, which started operating in Indonesia in 1985, currently has services in 40 locations in Indonesia and employs 360 people. (gis)