PT Pos seeks alliances with private companies

PT Pos seeks alliances with private companies

JAKARTA (JP): In a bid to expand nondocument forwarding
services, state-owned postal service company PT Pos Indonesia is
seeking business alliances with private firms, a company
executive announced on Monday.

PT Pos's president, Alinafiah, said the postal company had
received cooperation proposals from many firms, but that a
decision on the matter was yet to be made.

"We are still looking for the right partner... nevertheless,
we are still completing our business plan. The establishment of
the business alliance will likely have to wait until the
government releases the blueprint for the postal sector," he said
at a ceremony to commemorate world postal day.

PT Pos currently cooperates with state-owned airline Merpati
Nusantara for domestic deliveries, and with national flag carrier
Garuda Indonesia and several foreign airlines, including Japan
Airlines, for overseas services.

Alinafiah said the future business alliance would benefit the
company's nondocument forwarding business.

He said the company would, however, maintain the postal
service as its core business.

The postal service contributes up to 60 percent of PT Pos's
annual revenue, followed by nondocument handling with up to 25
percent.

Alinafiah said PT Pos's businesses had continued to grow since
the government changed its status in 1995 to one with a limited
liability.

He said that before the change, PT Pos's government mission
had often led to substantial inefficiencies.

PT Pos spokesman Sabarudin said the company's revenue grew
between 20 percent and 25 percent from 1995 to 1998, figures
which exceeded far the 7 percent and 12 percent growth between
1990 to 1994.

"We posted approximately Rp 80 billion in profits last year.
We are targeting a return of at least Rp 86 billion this year,
some 38 percent of which was realized in the first half,"
Sabarudin said.

He said PT Pos's postal service had not been undermined by the
recent mushrooming of local and foreign private courier services.

Local firms are currently allowed to offer document and
package delivery services, but can only operate up to the
district level. Foreign couriers are also permitted to offer
services here through collaboration with local firms.

Sabarudin said PT Pos still dominated the country's postal
service by holding no less than 50 percent of the local market
share.

"We provide cheaper prices and fast delivery. Our domestic
coverage is obviously more extensive ... (Foreign providers) will
be unable to compete with us in the (local) postal service," he
said, adding that PT Pos handled about 860 million letters and
documents in 1998.

Sabarudin said PT Pos currently held about 26 percent of the
local nondocument forwarding market.

He said that due to the prolonged economic crisis, the company
recently canceled a plan to operate an aircraft to support its
overseas postal and cargo handling businesses.

Alinafiah said PT Pos was now promoting the use of technology
to help boost the quality and competitiveness of its products and
services in anticipation of a likely future government decision
to liberalize the sector.

He said the government was currently working on a blueprint
for the postal sector. He said it's main object was to liberalize
the sector in accordance with the World Trade Organization's free
trade agreements. (cst)