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)