TNT presses on with RI expansion

TNT presses on with RI expansion

JAKARTA (JP): Netherlands-based air express company TNT
Express Worldwide will continue to expand its business in
Indonesia despite the country's worst economic turmoil in
decades.

TNT Indonesia president Soediono Soemantri said on Wednesday
the company would open five new branch offices in Pekanbaru and
Batam, both in Riau, and Bogor, Tangerang and Cikarang in West
Java by the end of 1999.

"The new offices will bring the TNT network to 23 branches
throughout the country. It shows that TNT remains upbeat about
the air express business in Indonesia despite the crisis," he
said in a news conference on the launching of TNT's new corporate
identity.

Somantri said TNT recently purchased an additional 25 vehicles
to support its expansion in the country.

"We are not considering the short term. We continue to invest
during a tough period, with the view that the crisis will end
soon. When it does, we will have secured our presence to provide
the fastest and the most reliable shipping solutions here."

Company director Colin Moran said the rupiah's sharp
depreciation against the U.S dollar -- the major cause of the
crisis -- had encouraged more exports.

"With the rupiah's sharp fall against the U.S dollar,
Indonesian exports are more attractive. And the increase in
exports means more business opportunities for air express
companies."

He added that TNT's delivery of Indonesian exports had
increased by 20 percent since January and the company handled 100
tons in parcel deliveries a week.

Moran also said the company would intensify its campaigns and
presence to capture market share.

"TNT has identified Indonesia as a very important market and
has prepared a very aggressive and focused strategic plan to
ensure the position of market leadership in the country," he
said.

"We have the second strongest position in the country. Our
market share here is currently 23 percent to 25 percent."

He said TNT Indonesia allocated Rp 4 billion in its
advertising budget until the end of this year, most of which
would be financed by the its giant holding company.

"Starting now, you will see our company through media and
billboards on the streets. But our main objective in our
advertising efforts is to improve brand awareness of Indonesian
customers. We are not targeting any revenue growth from this
campaign."

Moran said TNT would also expand its Asian Air Express
network, which currently connects Jakarta, Singapore, Hong Kong,
Manila, Taipei and Seoul five nights a week, by operating a new
Boeing 727 aircraft early next year.

"By using B-727, we can increase our uplift capacity from
Jakarta by 15 percent to meet the increasing demand for
Indonesian exports."

Moran said use of its own air fleet benefited TNT in the
crisis because the company could take over the cargo market left
vacant by other airlines, many of whom have reduced their
flights.

"It is more economical, too," he said.

TNT Indonesia, which began operations in 1979, currently has a
network of 18 branch offices. It employs more than 600 people and
has 200 vehicles at its disposal. (gis)