Pos Indonesia eyes eCommerce boom
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Indonesia’s national postal service, Pos Indonesia, is mulling a spin-off its logistics arm in 2019 an IPO to capitalise on the online shopping boom.
Pos Indonesia is aiming for Rp 11 trillion ($796 million) in revenue within the next two years, according to its director of technology and financial services, Indyruwani Asikin Natanegara. One third of this would come from its logistics arm, Pos Logistik Indonesia.
This would more than double Pos Indonesia’s estimated revenue of about Rp 4 trillion last year, and be a nearly eightfold increase (about Rp 500 billion) for Pos Logistik Indonesia.
Established four years ago, Pos Logistik Indonesia may make its trading debut before its holding company. It is something Pos Indonesia has been discussing for three years. With a network of 4367 offices and more than 28,000 agents, Pos Indonesia has established ties with such eCommerce companies as MatahariMall and Zalora Indonesia, in providing pickup and delivery services.
Pos Logistik Indonesia’s business solutions director Yan Hendry Jauwena says the idea is to provide logistics for eCommerce companies. It has formed a partnership with Singapore-based technology firm Anchanto, which will be offering its services for warehousing and inventory, processing orders and delivery.
Questions & Answers
Q.What is the primary reason Pos Indonesia is considering spinning off its logistics arm?
What is the primary reason Pos Indonesia is considering spinning off its logistics arm?
Pos Indonesia is mulling the spin-off and an IPO for its logistics arm to capitalise on the current online shopping boom. This move aims to take advantage of the growing eCommerce market.
Q.What revenue target has Pos Indonesia set for the next two years, and how much is expected from its logistics arm?
What revenue target has Pos Indonesia set for the next two years, and how much is expected from its logistics arm?
Pos Indonesia is aiming for Rp 11 trillion in revenue within the next two years. One-third of this target, approximately Rp 3.67 trillion, is expected to come from its logistics arm, Pos Logistik Indonesia.
Q.How significantly would the proposed revenue target increase Pos Logistik Indonesia's current earnings?
How significantly would the proposed revenue target increase Pos Logistik Indonesia's current earnings?
The target revenue for Pos Logistik Indonesia would represent a nearly eightfold increase from its estimated revenue of about Rp 500 billion last year. This shows a very ambitious growth plan for the subsidiary.
Q.Which technology firm has Pos Logistik Indonesia partnered with to enhance its services?
Which technology firm has Pos Logistik Indonesia partnered with to enhance its services?
Pos Logistik Indonesia has formed a partnership with Singapore-based technology firm Anchanto. Anchanto will provide services for warehousing and inventory management, order processing, and delivery solutions for eCommerce companies.
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