TNT expands courier business in Indonesia

JAKARTA (JP): Netherlands-based TNT International Express is opening three branch offices in Cikarang, Tangerang and Batam in the next three months in anticipation of the long-term prospects of the fiercely competitive courier service industry.

"The (Indonesian) industry is still quite healthy and exports are still competitive overseas," TNT Indonesia director Colin Moran said on Tuesday.

"The economy is at the lowest level it is going to get to, it is only going to get better from here," Moran said during the launching of TNT's e-commerce service.

TNT, which ranks among the top three courier service companies in Indonesia, saw its business grow by 20 percent in the first half of 1999, having declined by 15 percent in 1998, he said.

The company was also expanding its operations at Jakarta's Soekarno-Hatta International Airport and upgrading its Yogyakarta, Solo and Semarang branches.

TNT faces fierce competition from DHL Worldwide Express, which claims to have more than 50 percent of the Indonesian market, United Parcel Service (UPS) and Federal Express (FedEx) Indonesia. They have all been aggressively launching campaigns for their services, despite the economic crisis which hit Indonesia in mid-1997.

"We hold a strong second place position with 25 percent to 27 percent of the Indonesian market share," Moran said.

TNT employs 700 people and operates 135 vehicles from its 20 branch offices and 12 warehouses throughout Indonesia.

Its latest product, Customer Interface Technology, is aimed at providing physical delivery services for the growing transactions through the Internet, popularly known as e-commerce.

It also provides customers with 24-hour Internet access to check the status of their consignment.

TNT said about 1 percent of Indonesia's 210 million population were currently using the internet, but the number was expected to grow to 6 million users in the next three years.

"We are targeting 70 percent of our consignments moving into the electronic system in the next three years, as currently 11 percent of our consumers have gone through the electronic system."

The system is mainly targeted at medium to large customers, but it is also available for individuals.

Moran explained that about 90 percent of TNT's business in Indonesia came from export related activities and import of mining and exploration equipment from Australia, the United States and Singapore. (02)