Sinar Mas unit to form CDT business

JAKARTA (JP): Integrated logistics companies PT Bina Sinar Amity and PT Bina Sinar Utama plan to establish the country's first customs distribution terminal in the Cakung area of North Jakarta next year, a company official has announced.

The director of both companies, Jo Liat Tjiang, said on Monday that the terminal, also called a bonded warehouse, would help importers and exporters to improve the efficiency of their logistical operation.

"The concept still needs finalizing, but we plan to realize it by next year," he said.

Tjiang added that Indonesia offers opportunities for opening the distribution terminal as the country's manufacturing sector imports up to 80 percent of its raw materials.

The two companies are jointly owned by the Sinar Mas Group, Japan's Nisho Iwai, Sankyu and Itochu, and Taiwan's Amity Group.

Bina Sinar Amity operates a container yard, warehouse facility and container depot, while Bina Sinar Utama provides customs clearance services, freight and forwarding, transportation and container repair service.

The two companies recently received the ISO 9002 management system certification from the Netherlands' KEMA Registered Quality.

Tjiang said the two companies enjoyed a combined turnover of Rp 70 billion last year, and were expected to grow by 20 percent this year.

He also said the companies planned to go public next year if the country's economic condition improved.

"If Indonesia's economic condition improves next year, we will launch an initial public offering (IPO)," he said, adding that the company aimed at becoming the market leader in 2002.

Tjiang declined to provide details.(rei)