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Deutsche Post DHL Supports Indonesia's logistics Vision 2025 with Multi-million Dollar Development Strategy

2013-10-08 15:00 1723
 

CEO Frank Appel underlines Indonesia's vital role as a cornerstone of the Asia trade triangle and a key to DHL's continued global market leadership

JAKARTA, Indonesia, Oct. 8, 2013 /PRNewswire/ -- The three business divisions of Deutsche Post DHL, the world's leading postal and logistics group, will drive their expansion plans in Indonesia through significant investments. DHL Express, which marks its 40th anniversary in Indonesia in 2013, has committed IDR109 billion (approximately EUR9.2 million) this year to extend its network and services. DHL Supply Chain has earmarked EUR40 million over the next few years to further strengthen its market-leading position in Indonesia, and DHL Global Forwarding recently announced plans to open new offices in Manado and Palembang to further serve the six new economic corridors under development by Indonesia.

Frank Appel, CEO of Deutsche Post DHL, said: "Deutsche Post DHL is a global logistics leader and key enabler of international trade. As the strongest international logistics player in Indonesia, we are committed to partnering Indonesia to realize its dynamic market potential and become a major force in intra-Asia trade and the Asian trade triangle. DHL has a clear strategic compass going forward on a global scale and by 2017 we expect that a third of our revenue will come from Asia Pacific, with Indonesia being a solid contributor as emerging markets continue to register high growth."

Connecting the archipelago to the world

The government-led Indonesia Vision 2025 will see the introduction of new logistics infrastructure integrated across the vast archipelago, international connections to major global economies, and free-trade agreements inside and outside ASEAN, all of which will increase national competitiveness, improve global connectedness and speed up and simplify the movement of cargo. These moves are all welcomed by Frank Appel, a guest at the recent APEC CEO Summit in Bali from October 5-7, 2013, where he spoke on the issue of global connectedness as a key driver of economic growth.

"With the government pursuing its economic strategy and investing in infrastructure to create first-class logistics capabilities by 2025, Indonesian companies face unprecedented opportunities for growth," said Frank Appel. "As a trade facilitator, DHL will play a key role in the development of simplified services and sustainable solutions for Indonesia's logistics industry, enabling both Indonesian and international customers to remain globally competitive."

DHL's Indonesia investment & expansion for continued growth

With GDP over 6 per cent for the past three years[1], Indonesia has enjoyed the most stable growth in ASEAN. As part of the long-term investment of EUR40 million, DHL Supply Chain, the global market leader for contract logistics solutions, continues to bolster its investments in facilities, transport, IT systems and staff training in Indonesia. By 2015, the company plans to grow its staff strength by over 70% from its current base of some 2,250 employees, and add 60% more warehouse space to enhance its network of 164,000 square meters of warehouse space it currently operates.

Over the last three years, DHL Express, the world's leading international Express company, has invested over IDR36 billion (approximately EUR3.1 million) to expand its footprint, upgrade its facilities and maintain high service levels to its 9,000 customers in Indonesia. An additional investment boost of EUR9.2 million will include the opening of six retail outlets in Jakarta, a new Denpasar gateway, the upgrading of its Jakarta Gateway and gateways in Medan and Balikpapan to cope with the increasing demand for reliable and speedy international express services.

DHL Global Forwarding, the air and ocean freight specialist within Deutsche Post DHL, will add two new offices in Manado and Palembang by the end of the year designed to further serve the six new economic corridors under development by Indonesia. These offices join the company's existing 7 offices -- including one launched in Ujung Pandang earlier this year -- and its network of 40 terminals. More offices are in the pipeline for 2014 and 2015.

From serving local SMEs to large multinational companies, Deutsche Post DHL's success is deeply rooted in its Strategy 2015 that is based on three main goals -- becoming the Provider of Choice for their customers, the Employer of Choice for their staff and the Investment of Choice for their investors.

[1] The World Bank.

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Source: DHL
Keywords: Transportation
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