Sat, 05 Feb 2005

Soewarna offers integrated warehousing system

Abdul Khalik, The Jakarta Post/Jakarta

An online connection with the Customs and Excise Office is expected to lessen the paperwork for freight forwarding companies at the Soewarna Business Park, located near Soekarno-Hatta International Airport in Cengkareng, west of Jakarta.

Soewarna's senior general manager Ishak Chandra told a press briefing on Friday that the Customs and Excise Office set up a branch in the business park last March to serve tenants directly under a one-roof system.

"All customs and excise paperwork can be filled out in several minutes. Our tenants don't have to go outside of the complex since customs and excise is part of our integrated system," he said.

The service has attracted giant multinational freight forwarding companies -- such as Japanese firms Kintetsu and Nippon Express USA Inc. and TNT Express -- to the 102-hectare business park.

"We are the only warehouse complex offering such a one-roof service in the country. We were able to convince the government to extend its services into our complex because they believe we are a credible firm and have many trustworthy tenants," Ishak claimed.

Soewarna -- owned by the Sojitz Group of Japan, the Four Season group and several local shareholders -- has lured around 70 multinational companies to rent space there, including non- related airport companies, such as German electrical and communications company Siemens and New York-listed paint and coatings company Valspar Corporation.

Businesses have often complained about the arduous clearance procedure for imported goods placed in warehouses within the airport complex.

The customs clearance procedure is supposed to be free of administrative charges, but businesses allege that customs and excise officials collect illegal fees and accept bribes for speedy clearance.

Besides warehouses and the online system, the business park's integrated system is also equipped with Internet networking, office buildings, restaurants, a hotel, travel services and the 18-hole Cengkareng Golf Club.

Ishak claims the golf club is one of the busiest golf clubs in Jakarta with 5,500 visitors monthly.

Soewarna also offers potential tenants a customized warehouse building, called a built-to-suit facility.

"Tenants can choose the location inside the business park, pick a particular model and quality of building, then we build it for them. They just pay when it's finished," said Ishak.

He added that Soewarna's income was expected to rise by 20 percent but refused to mention a figure. He also said the business park management intended to increase the number of tenants by 10, with most expected to choose built-to-suit premises, which have a minimum area of 2,000 square meters each.

"We don't expect many tenants because we are focusing on giant companies to take the built-to-suit facility," said Ishak.