ASEAN KEY DESTINATIONS
Triputra Group forms $110m joint venture with Asia’s leading logistics firm
Indonesia: Puninar Logistics — part of the Triputra Group, an emerging diversified conglomerate — has established a joint venture with Hong Kong-listed Kerry Logistics with a US$110 million investment.
The joint venture will strengthen Puninar’s global connections and help Kerry gain better access to Indonesia with a market consisting of a 250 million population that has attracted multinational firms to operate here.
Puninar will hold an 85 percent stake in the new company, Kerry-Puninar Logistics, while Kerry will hold the remaining 15 percent, Puninar president director Eddy Korompis said.
Kerry expected to see its stakes in the newly established company grow to a maximum of 40 percent in around two years, he added.
“This joint venture will not only bring products from Kerry’s well-established worldwide customers into the country, but will also potentially help us send domestic products abroad through our partner’s connections,” said Eddy, who also serves as the new venture’s president director.
The partnership is designed to help Kerry gain access across the nation’s 17,000 islands with Puninar as its local partner, as well as supporting Puninar’s business expansion, especially in accessing more overseas customers.
With Kerry bringing expertise, know-how and technology to the partnership, the cooperation is also expected to help deflate costs in the country’s logistics, which have long been a source of business problems in the sprawling archipelago and have lead to surging product prices in remote areas.
Puninar logistics finance director Yohanes said initially the joint venture would focus on fashion, electronic and lifestyle distributions — in which Kerry is a strong player.
Yohanes added that the joint venture was also expected to help Puninar improve its net profit.
“Puninar’s net profit is 5 to 10 percent of our revenue of Rp 800 billion [$63.5 million] to Rp 1 trillion. With the joint venture we expect to see an additional 2 or 3 percent in the margin,” he said.
Puninar is among one of Indonesia’s largest logistics players, with key customers in the automotive, fuel, oil, electronics and retail industries.
Its market grip in the automotive logistics sector accounts for 80 percent of the country’s market.
The company operates transport by sea, air and land — with a logistics portfolio of around 9.67 million square feet (sq ft).
Its fleets comprise more than 700 trucks and 27 vessels.
It is part of the Triputra Group — founded by former Astra International president director Teddy P. Rachmat — with businesses including mining, agribusiness, finance trading, rental services, logistics and manufacturing.
Meanwhile, Kerry Logistics has operations across China and the ASEAN region, serving multinational corporations and international brands. It has over 550 offices in 39 countries and territories, and manages over 42 million sq ft of logistics facilities worldwide.
Kerry Logistics chairman George Yeo said the joint venture laid a strong foundation for cooperation between his company and Puninar, and marked a significant phase in Kerry’s business development in Indonesia.
“Indonesia has high demand for quality inter-island logistics services, which translates into immense growth opportunities,” Yeo said.
“By enabling customers to optimize their supply chains with our integrated logistics services and highly customized solutions, we believe we are well-positioned to capture opportunities in the rapidly growing Indonesia logistics market,” he explained.
Indonesia’s logistics industry accounts for about 3.6 percent of its national economy, estimated to be worth Rp 1.816 trillion in 2014, with considerable growth potential, according to the consulting firm Frost & Sullivan. - See more at: http://www.thejakartapost.com/news/2015/01/19/triputra-group-forms-110m-joint-venture-with-asia-s-leading-logistics-firm.html#sthash.ayZqikXr.dpuf
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