PT Pos Indonesia should Act as the Leader of Logistic Industry

Randi Eka - 13 May 2015

E-commerce has grown into one of most promising industries in Indonesia. The fact that people are more convenient in utilizing online services triggers the trend. ICD Research once predicted that from 2012 to 2015, the growth of e-commerce market in Indonesia will reach 42 percent. And they were right, the growth indeed is significant.

This vast growing e-commerce industry is beneficial not only for the players within, but also other related parties like online payment providers, internet banking transaction server, and logistic businesses.

It was two months ago when JNE informed that 60 percent of their revenue derived from e-commerce. In 2015, the delivery service provider targets to lift the number up to 70 percent. Unfortunately, this good opportunity isn’t managed well by PT Pos Indonesia, the State Company that should have enjoyed a huge profit out of the trend.

The role of logistic business becomes a double-edged sword

The current condition of logistic industry in Indonesia is like a double-edged sword, supporting the e-commerce industry on one hand and being the imndustry’s weakling on the other. Delivery is one of issues customers often complain about. Long delivery time is suck, no wonder customers keep jumping from one ship to another only to find the best delivery service provider.

The logistic sector indeed is the weakling. To overcome this issue, there are more and more e-commerce players who establish their own in-house delivery service, particularly for deliveries within Jabodetabek.

The delivery issue is often caused by addresses which are too far or isolated. The handling vendors often face difficulties because they have yet had any office in such rural areas. Sadly, PT Pos Indonesia, which has its office stood in almost all parts of Indonesia, doesn’t represent what it’s capable of well enough.

PT Pos Indonesia isn’t aggressive enough in capturing the opportunites

The declining PT Pos Indonesia must have some issues at its disposal, preventing it from establishing mutual partnership with potential e-commerce players. The company should have enjoyed the maximum benefits of the moment, since it actually has the broadest network all over Indonesia.

Unfortunately, instead of drafting the best strategy to enhance its brand awareness, PT Pos Indonesia decided to involve itself as an e-commerce player. Being excellent in logistic doesn’t justify one to become a successful e-commerce player.

GaleryPOS or PlazaPOS, online marketplace founded by PT Pos Indonesia, has proven that the company’s still lack the capabilities and experience to excel in e-commerce industry.

Thus, focusing in logistic services might be the best option PT Pos Indonesia has. ICT Institute’s Executive Director Heru Sutadi was in line with this belief, as he argued that PT Pos Indonesia needs to learn about how to optimize its logistic power from other post service providers around the world.

PT Pos is seen to be the one who will hold a central role in delivery industry, should they are willing to collaborate with existing e-commerce players. According to Sutadi, PT Pos’ services can be used to protect buyers from digital fraud. PT Pos Indonesia’s core business isn’t trade, but logistic.

PT Pos needs a new trigger to kick some ass

You can say anything, but couldn’t hide the fact that PT Pos Indonesia sorely needs fresh air and new innovation to be in the spotlight. It seems that PT Pos is always reluctant to miss the existing trend. When the internet penetration started blooming, Wasantara-Net was born as an ISP (Internet Service Provider). Back then, PT Pos partnered with PT Quantum Aksesindo Nusantara. Now, the name has no longer been in people’s mind, whilst the number of active internet users in Indonesia has reached more than 80 million.

There are actually tons of things that should be managed much more neatly and innovatively by PT Pos Indonesia. By relying on the power of branch office distribution and society’s trust the company possesses, it’s not a hard thing to be the leader of the logistic industry in Indonesia. However, it does take the right innnovation and strategy to grow the potential.

Last March, PT Pos finalized a strategic alliance with AliExpress and Singapore Post which enables faster delivery from China to Jakarta. With 6000 couriers who are spread all over Indonesia and prominent delivery tracking, it’s normal for PT Pos to do its best to re-emerge as the top logistic player in Indonesia.

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