Logistics services that are categorized as advanced services are estimated to have a business volume valued at $550 million or 20 percent of the market share. This type of services is next to the classic services but include pickup, labeling and testing services. The growth of advanced services is estimated to reach 16.7 percent from 2005 until 2012.
Meanwhile, full services – those include warehousing, consultation and shipment tracking – will grab 10 percent of the market share by 2012 with a volume totaling $280 million with a 22.5 percent growth in market share starting from 2005.
Therefore, the number of players in this huge market is also increasing, including those that only offer basic services, such as courier, warehousing and distribution up to the most sophisticated services that provide integrated services called total logistics solutions. The Express Couriers Association of Indonesia (Asperindo) has noted that there are more than 900 companies in this business, but only 100 or so are registered with the association. Meanwhile, Indonesian Logistics Association (ALI) records show that there are over 300 companies in Jakarta, while Association of Indonesian Forwarders and Expedition Companies (Gafeksi) data indicates that there are more than 3,000 such companies throughout the country.
While the majority of logistics companies are local, about 75 percent of the business volume is dominated by foreign companies. Hence, local players have to work hard to survive and implement various strategies to grab a share of the market.
In the midst of tough competition, the trend is more toward total logistics solutions even by local companies that include distribution network design, warehousing and transportation. So, there is no differentiation between express delivery and non-express or even logistics in the real sense. Category-wise, based on a company’s initial services after its establishment, the number of services varies, such as shipping, air cargo, trucking, freight forwarding, warehousing, express courier and distribution. Certainly, nowadays most companies provide more than one type of service.
Today, one cannot underestimate the activities of local companies amid the aggressive onslaught of foreign players. One such local player is PT Cipta Krida Bahari (CKB Logistics). CKB Logistics is a fast growing regional integrated logistics services provider with expertise in Project Logistics and Total Logistics Solutions. Customized Logistics and Supply Chain Management Solutions from CKB Logistics address every logistics requirement, including transportation services, export-import customs clearance, warehouse management, special projects logistics and integrated solutions throughout Indonesia.
Given its expertise, CKB Logistics focuses on oil and gas, mining, contractors, power systems, heavy equipment, telecommunications and other target industries that require special handling and distribution to remote areas. CKB Logistics relentlessly provides customized solutions for customers despite geographical and infrastructural constraints, from moving small parts via air courier, medium-sized equipment on trucks to shipping heavy machinery on chartered vessels, landing craft tank or freighter aircraft.
Meanwhile, PT Berlian Laju Tanker (BLT) is another example of a successful and aggressive domestic company. This company, which was established in 1981, started to flourish when it acquired Chembulk Tankers LLC in December 2007. This boosted BLT’s operations and geographical coverage worldwide, which was previously concentrated in Asia and the Middle East.
Another major local company, Fin Logistics, which was established by Soedjarwo Sudarmo in 1977, has always focused more on freight forwarding. Fin Logistics, since its establishment, has fully developed by opening a number of branches in major cities across the country. The company also has dozens of light and heavy trucks to support its business. Fin has also spread its wings internationally by cooperating with several international agents.
The Pandu Siwi Group, with its subsidiary PT Pandu Siwi Sentosa (PSS), is another aggressive local company. It concentrates on domestic express delivery, warehousing management and distribution. Another subsidiary is PT Indah Jaya Express, with its international business in freight forwarding, express delivery and logistic provider. There is also PT Trimitra Bella Transindo for domestic sea, land transportation and relocation. These three companies are better known by the benchmark brand Pandu Logistics. (Iwan Suci Jatmiko)
The Jakarta Post, May 14, 2009