Pos Indonesia to raise $75.2m via bonds to expand logistics business


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President Director PT Pos Indonesia Gilarsih Setijono - Photo by Vincencia NLS
President Director PT Pos Indonesia Gilarsih Setijono - Photo by Vincencia NLS

Indonesia state-owned postal operator PT Pos Indonesia is planning to raise Rp1 trillion ($75.2 million) in rupiah bonds this year, the proceeds of which will be used to expand its logistics service to support the growing e-commerce industry.

President director Gilarsih Setijono said, the company has planned a capital investment of up to $300 million for the next three years to support it’s drive to become the largest logistics firm in the country.

Also Read: Indonesia: Bank Rakyat to raise $333m from bonds in Feb; Pos Logistik mulls IPO in 2019

At present, Pos Indonesia operates around 4,770 post offices across the country and around 2000 of them have been integrated with its online system. The company has three core business, namely courier, financial services and logistics.

“Our target is to become a giant logistics firm in five years and at the time our market share will increase from around 20 per cent at present to 40 per cent, with revenues of around Rp80 trillion,” he said.

This year, Pos Indonesia targets to generate revenues of Rp6 trillion, up from Rp4.6 trillion last year.

Gilarsih continued, the company is in talks to build warehouses in cooperation with investors from US, UK, China and Japan. In addition, Pos Indonesia is also exploring opportunities to acquire transportation and warehouse firms as part of its plan to expand business.

It plans to develop warehouses on 50 hectares land. Currently, the company has a warehouse on three hectares of land.

According to Setijono , Pos Indonesia was already in discussions with several state-owned enterprises to swap their land or warehouse with the company’s asset– so that Pos could reach its land acquisition targets, .

Pos Indonesia has recently tied up with all the major e-commerce players to support their logistic needs.

In December 2015, Pos Indonesia signed a cooperation agreement for logistics support with Zalora Indonesia, one of the largest fashion e-commerce sites in Indonesia as well as MatahariMall.com, a newly established B2C e-commerce platform owned by the Lippo Group.

Also Read: Fashion e-tailer Zalora Indonesia inks logistics pact with state-owned post office firm

E-commerce players have admitted that logistics system is vital for developing a successful e-commerce business in the archipelago nation. Indonesia consists of around 17,000 islands, making logistics a herculean task.

Pos Indonesia says that it has the potential to become the main logistics backbone for e-commerce players given its extensive post office network across the archipelago.

Also Read: Indonesia’s MatahariMall ties up with state postal service for O2O push

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The SupplyChains Magazine editorial team takes great pride in bringing you the best information to help you succeed in your supply chain, logistics or procurement functions. Together, our editors and contributors have more than 50 years of supply chain industry knowledge to share with you.

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