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)