Postal firm starts mail order business
Postal firm starts mail order business
JAKARTA (JP): Minister of Tourism, Post and Telecommunications
Joop Ave yesterday kicked off the operation of `Belanja Lewat Pos',
a mail order service introduced by the state-owned postal service
Perusahaan Umum Pos dan Giro (PPG).
"The service, which cuts distribution lines, offers goods of
high quality at prices lower than those charged at marketplaces,"
he said.
PPG is cooperating with PT Surya Jati Hutama, an affiliate of
the Panutan Group, which is controlled by businessman Sigit
Harjojudanto, in operating the service under an agreement signed
here in September.
Surya Jati's chief commissioner, Ruthiani Soebijakto, said
recently that the company has invested about Rp 300 million
(US$138,000) to support the mail order service.
Buyers can make orders by including their payment for goods at
the nearest post office, which will send the orders Surya Jati on
the same day. Surya Jati will then pass the orders on to
suppliers, who will send the ordered goods to buyers through PPG.
The buyers are expected to receive the goods at their addresses
within three to 14 days. The goods can also be sent to other
addresses when the people ordering them want to give presents.
According to PPG's president, Marsoedi, a total of 3,851 post
offices all over the country will support the mail order service,
enabling customers from as far away as Aceh to order goods at set
prices for relatives in Irian Jaya, at the other end of the
archipelago.
Each of the post offices will provide brochures, lists of
goods and catalogs to help buyers choose goods, he said.
PPG's director of commerce, Cahyana, told reporters yesterday
that the new service is projected to help increase the company's
revenues by Rp 1 billion in 1995, Rp 2.12 billion in 1996, Rp
3.53 billion in 1997 and Rp 4.49 billion in 1998.
The company's revenues are expected to come from the
commission of 2.5 percent of the sales prices of goods and from
the service of conveying letters for the orders from buyers, as
well as the sending of parcels from suppliers to buyers.
Cahyana said suppliers will receive 80 percent of the sales
prices of their goods.
"In one month of our soft operation, beginning in late
September, PPG received 423 orders for goods worth Rp 60 million
($28,000)," Cahyana said, adding that the buyers mostly live in
small towns.
The mail order service is currently offering some 50 kinds of
goods, including housewares, fashions, handicrafts and canned
food and drinks, with prices ranging from Rp 10,000 (US$4.57) to
Rp 5 million each.
According to Cahyana, PPG will likely operate leased aircraft
to develop the mail order service, with a trial operation to link
Jakarta and Medan in North Sumatra. (icn)