Indonesia Country Report 2012

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Discovery Reports

Kamadjaja Logistics expands with national and regional growth

Discovery Reports

PUBLISHED : Friday, 02 November, 2012, 10:32am
UPDATED : Thursday, 23 May, 2013, 4:15pm

A firm belief in Indonesia's booming economy fuels the growth of Kamadjaja Logistics, an industry pioneer boasting one of the largest nationwide warehouse and distribution networks.

"Indonesia is very attractive, not only in terms of logistics but as a business destination," says deputy CEO Ivan Kamadjaja. "A population of 240 million, stable growth of 6 to 7 per cent - we believe that we will grow bigger given those facts."

Kamadjaja started as a logistics infrastructure provider for government projects. Leveraging its first mover advantage and more than 40 years in the business, the company has grown to reach more than 300 destination points from more than 18 distribution centres in all key cities.

More than 200 clients rely on Kamadjaja for end-to-end logistics solutions. Seventy per cent of these are multinationals, many of them leading brands and Fortune 500 companies. Kamadjaja customises warehousing and creates solutions to meet specific needs of individual clients.

The company has extensive experience in inventory management, handling, storing and transporting fast-moving consumer goods, large home appliances and industrial and automotive cargo. Kamadjaja also provides value added services including repacking and supply chain consultancy.

Kamadjaja is building an ultramodern logistics complex in Cibitung, Bekasi. Sprawling across 18 hectares, the complex will feature cold storage facilities, a container yard and state-of-the-art storage and material handling equipment.

Kamadjaja constantly invests in technology and synergy between systems such as warehouse management, enterprise resource planning, radio frequency identification, transport management and global positioning system tracking.

The company is growing its in-house forwarding container trailer fleet to maintain full control and increase equipment use of all shipments and to enhance efficiency. "Infrastructure is challenging in Indonesia, so we are managing operations in a smart way to bring the cost down for our customers," Kamadjaja says.

To continue its steady growth, Kamadjaja is forming new business units within the supply chain. The company plans to invest more than HK$400 million over the next three years for real estate, warehousing, fleet and technology acquisitions.

Kamadjaja's growth plans also include expanding its presence in Thailand, Singapore, Japan and the Philippines. The company is looking for joint ventures to penetrate the Thai and Malaysian markets. Kamadjaja is also open to working with importers on the mainland.

"We project to grow by more than triple by 2016," Kamadjaja says. "It's quite aggressive but looking at the market and the economy we believe we can achieve that."

Kamadjaja Logistics