FedEx pledges to maintain services in Indonesia

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)