UPS predicts record 1999 for Indonesian operations

JAKARTA (JP): U.S.-based courier giant United Parcel Service (UPS) is predicting a bullish 1999 for its business, which is soaring as firms try to export their way out of the economic crisis.

UPS senior vice president for Asia Pacific, Charles A. Adams, acknowledged here on Friday that the rupiah's collapse against the U.S. dollar -- the major cause of the economic turmoil -- actually worked to encourage more exports.

"Nineteen ninety-eight is a record year for our company due to the increase in exports from Indonesia and other Asian countries. We believe that 1999 is another record year for us," he said after the opening ceremony of UPS new service center in BII Plaza, Jl. M.H. Thamrin, Central Jakarta,.

He said that exports from Asian countries to European countries and the United States grew at least 25 percent and 40 percent this year, and were expected to grow at the same level next year.

"As exports move the economic engines of Indonesia and other Asian countries, we expect that economies of the region will start to grow in the third quarter of next year."

Adams 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."

He said the company's growth in its business in Indonesia this year had exceeded its growth in the region despite its recent entry in the country.

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

PT Cardig Citra Primajasa/UPS Indonesia's President Jeff Fairbairn said that the company recorded 25 percent growth in terms of revenues and volume this year and expected to grow by another 25 percent next year.

UPS claims to control between a 12 percent and 18 percent market share of package deliveries in Indonesia, and it is aiming to increase it through "service and value for money".

"We are always looking at improving our levels of service and we are here for the long haul," Fairbairn said. "Although the present economic conditions in Indonesia are tough and the competition is tight, we want to be considered a premium alternative in this market place."

PT Cardig Citra Primajasa/UPS Indonesia is 49 percent owned by 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 serves 20 major cities in the country, employs more than 200 people and has 66 vehicles at its disposal.

Adams said that the opening of the new UPS Express center in BII Plaza in the capital was part of the company's strategy to increase its presence in key markets.

"It is no coincidence that UPS is today opening a new express center right here in the central business district. Despite the current economic problems that Indonesia is facing, UPS remains committed to Indonesia and to our long-term business goals."

Fairbairn said the company would open five more service centers in Greater Jakarta next year and six more branch offices in other cities.

"We plan to open a new service center in the Jakarta Stock Exchange building and in Balikpapan, East Kalimantan, in January." (gis)