Asian freight forwarder Kerry Logistics has formed a joint-venture company in Indonesia as it seeks to tap into the country’s growing supply chain network and the opportunities emerging from the launch of the Association of Southeast Asian Nations (ASEAN).
Inauguration rites for the new Kerry-Puninar Logistics joint venture were recently held in Jakarta by the company together with partner PT Puninar Saranaraya (Puninar Logistics), one of Indonesia’s largest logistics corporations.
“The joint venture will allow the two partners to leverage each other’s competitive strengths to attain win-win results,” according to an official company statement. “It will combine Kerry Logistics’ global logistics expertise and international freight forwarding network with Puninar Logistics’ local capabilities and connections.”
According to George Yeo, chairman of Kerry Logistics, the joint venture marks a significant phase of its business development in Indonesia. “As an archipelago, Indonesia has high demand for quality inter-island logistics services, which translates into immense growth opportunities.”
He noted that the country comprised of over 17,000 islands and host to a population of over 240 million has seen “a surge in local consumption in recent years to a level comparable to Singapore and Thailand, with significant economic activity in the pipeline.”
Additionally, Indonesia is poised to benefit from the free flow of goods and services from the launch of the ASEAN Economic Community in 2015.
“All of these factors have contributed to a very favorable environment for the growth of local logistics businesses in the region,” he noted.
According to Frost & Sullivan, Indonesia’s logistics industry currently accounts for about 3.6% of its national economy. The local transportation and logistics market was estimated to be worth IDR181.6 trillion (US$14.42 billion) in 2014, with considerable growth potential as the country’s new president Joko Widodo has emphasized early on that his focus is on enhancing the local transport industry.
Photo: Michael J. Lowe
