Kerry Logistics Network Limited (“Kerry Logistics”; Stock Code 636.HK), a leading logistics service provider in Asia, today announced the formation of a new joint venture - Kerry-Puninar Logistics, with the shareholders of PT Puninar Saranaraya (“Puninar Logistics”), one of Indonesia’s largest logistics companies for business expansion in Indonesia.
At the inauguration reception of the joint venture held in Jakarta, Kerry Logistics Chairman Mr George Yeo and Puninar Logistics President Director Mr Eddy Korompis shared the common vision of generating synergies and further expanding their businesses.
The joint venture will allow the two partners to leverage each other’s competitive strengths to attain win-win results. It will combine Kerry Logistics’ global logistics expertise and international freight forwarding network with Puninar Logistics’ local capabilities and connections. This will give customers in Indonesia access to complete supply chain solutions and a globally integrated network. In addition, Puninar Logistics will also be able to expand its international customer base.
Mr George Yeo, Chairman of Kerry Logistics said, “We are very grateful to Puninar Logistics for their trust and support. The joint venture lays a strong foundation for cooperation between Kerry Logistics and Puninar Logistics, and marks a significant phase of our business development in Indonesia. As an archipelago, Indonesia has high demand for quality inter-island logistics services, which translates into immense growth opportunities. By enabling customers to optimise their supply chains with our integrated logistics services and highly customised solutions, we believe we are well-positioned to capture opportunities in the rapidly growing Indonesian logistics market.”
Mr Eddy Korompis, President Director of Puninar Logistics said, “Through this partnership, not only will we strengthen and further extend the scope of our businesses, but both parties will also be able to benefit from the complementary advantages and contribute to the further development of our existing businesses. We look forward to the immense business opportunities that will emerge.”
Indonesia is one of the key countries in ASEAN. Its economy and logistics industry are poised to benefit from the free flow of goods and services from the launch of the ASEAN Economic Community (“AEC”) in 2015. As a vast country comprising over 17,000 islands and hosting a population of over 240 million, the country 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. All of these factors have contributed to a very favourable environment for the growth of local logistics businesses in the region.
According to Frost & Sullivan, Indonesia’s logistics industry currently accounts for about 3.6% of its national economy. Indonesia’s transportation and logistics market was estimated to be worth IDR 1,816 trillion in 2014, with considerable growth potential.