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Kamadjaja Logistics | Mr Ivan Kamadjaja
Mr Ivan Kamadjaja

As a total solutions logistics provider, we believe we are in the top five in Indonesia and serve around 200 clients which are both national and international companies.

Mr Ivan Kamadjaja, Deputy CEO

PT Kamadjaja Logistics is a leading integrated logistics service provider in Indonesia having been founded in 1968. How is the company positioned within the Indonesian market and what are the current strategies being followed to further expand the company?

Kamadjaja Logistics was started in 1968 as a freight forwarding company and from there we went into third party logistics. Due to strong demand from our clients we later entered into international freight forwarding and value added services.

As a total solutions logistics provider, we believe we are in the top five in Indonesia and serve around 200 clients which are both national and international companies. We have over 300 delivery points so have one of the widest networks and have 15 distribution centres as well as being present in 10 major cities across Indonesia. Therefore our coverage of Indonesia makes us one of the largest logistics providers in the country.

Our strategy is to build the organisation and build the business; that means developing our culture and our people. Our ICT infrastructure undergoes continuous investment such as warehouse management and transport management systems as well as GPS tracking for example. Modern warehouses are the focus for now; at our current warehouses we are close to full capacity so we are looking to expand this capacity by installing additional racking and we plan to acquire new land for further developments in the near future. In 2011 we acquired 18 hectares in Cibutung close to Jakarta to build 100,000 sq meters for a warehouse and a logistics complex for cold storage, motor warehouse and trucking facilities to be operational in 2013. In the next few years we may also consider inorganic growth by acquisitions.

Infrastructure and subsequent high logistical costs remain a major challenge in Indonesia. What is your outlook on the future development and evolution of the sector over the medium term?

Indonesia has one of the highest logistics cost in the ASEAN region which is mainly due to poor infrastructure. The government is placing focus on it through the logistics blueprint. As a democratic country we face delays due to the necessary processes and bureaucracy. I am however seeing the light at the end of the tunnel as the government made 2012 the year of logistics and things are definitely improving.

In terms of new technology within Indonesia’s logistics industry, in which areas do you foresee further development?

The future of technology in logistics in Indonesia is RFID and GPS tracking as there is still a lot of potential for it here. Warehousing Management Systems have become quite standard in Indonesia now.

Given Indonesia’s growing external trade volumes and position as an international manufacturing base, how is the company positioned towards establishing partnerships and joint ventures with international logistics players?

We will be looking at the international market in the next one to two years. Indonesia is one of the most attractive investment opportunities at the moment with strong domestic consumption so it will be our focus for the short term. For the future the Philippines and Thailand will be of interest. Malaysia and Singapore are becoming saturated but the Philippines and Thailand show a lot of potential for the logistics industry. I will be looking for a local partner to work with in those markets. For China we are also well positioned to serve further trade with Indonesia in the future.

We are open to potential partners from overseas; for us the key is synergy. The areas that we would benefit from are capital and technology. Capital would be of key interest because Kamadjaja Logistics is expanding further into third party logistics and we need to acquire new land for warehouses so it is capital intensive. Other areas such as air freight and project logistics are interesting to add to our service portfolio and for this you need local knowledge to forge partnerships.

What would you say are the key competitive advantages of Kamadjaja Logistics?

We have been in the country for over four decades and have the local knowledge as well as long standing relationships with the government, customs bodies and our clients. One of our major customers is Unilever for example who we have been serving since 1979 so this shows that we can foster long term relationships. We have the people and the professionals to serve clients well.

What should potential investors and partners remember about Indonesia as a final message?

This is the time to invest in Indonesia as the country is showing all the positive economic indicators and therefore making it one of the most attractive targets for investment. I would encourage people to come and see the potential that Indonesia has to offer.