UPS expects larger share in courier market

JAKARTA (JP): U.S.-based express parcel company United Parcel Service (UPS) is targeting 35 percent of Indonesia's market share next year despite its relatively recent entry into the country.

UPS Indonesia president Jeff Fairbairn said on Friday the company currently handled about 19 percent of the country's parcel deliveries.

"We know it is tough to reach the target amid the tight market and hard competition in the country's air express business, but we are quite optimistic due to the growth in exports," Fairbairn told The Jakarta Post.

"With such a huge export potential, no international courier company can ignore Indonesian market."

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

"Our short-term goal is to widely introduce UPS services to the Indonesian public. We don't want them to mix us up with the UNinterruptible Power Supply," he said, referring to a computer power protector device known by the same initials.

UPS Indonesia is 49 percent owned by U.S courier giant UPS Worldwide and the remainder by Indonesia's Cardig Citra Primajasa. The company started operations in Indonesia last January.

UPS services in the country were formerly handled by Cardig as its agent.

The company currently serves over 20 of the country's main cities. It employs more than 200 employees and has 66 vehicles at its disposal.

Fairbairn said the company had a long-term commitment to Indonesia and would continue to improve its services to customers.

"Although the country is having an economic slowdown, we remain committed to providing the best shipping solutions to local businesses."

UPS launched overnight delivery last month from the country to most of Asia for shipments picked up as late as 7 p.m.

The company has also provided a next-day delivery service from Singapore aimed at helping Indonesian export manufacturers who rely on raw materials from overseas, especially Singapore.

Under the service, goods collected before 10 p.m in Singapore will arrive the next day in Jakarta and Bandung.

The company also provides a two-day service to many destinations in the United States.

"We will not shy away from the competition although we are a new player in the country. Competition is always good for the business," Fairbairn said.

He added that the company also offered its customers the most sophisticated tracking technology and a money-back guarantee.

"Your money will be returned if we fail to deliver your package on time. It is our commitment," he said.

Fairbairn said UPS preferred to cooperate for the time being with commercial airlines for deliveries because they gave a greater range of flight choices.

"We have asked our consumers and they want us because of our flexibility in delivery, as they have many more delivery choices. We offer them the latest pickup and the earliest delivery," he said.

"But we will use our own aircraft in the future if we see the sharp growth in the delivery volume." (gis)