Source:
https://scmp.com/article/1074263/bgr-explores-alliances-southeast-asia
Country Reports

BGR explores alliances in Southeast Asia

Discovery Reports

Mulyanto, president and director

With close to four decades supporting Indonesia's export and domestic trading, Bhanda Ghara Reksa (BGR) moves with the needs of its home market.

"There is tremendous demand and potential in Indonesia and we support the country in its development with efficient logistics solutions," says Mulyanto, BGR president and director.

Indonesia is becoming a top destination for fast-moving consumer goods (FMCGs) such as mobile phones, computers and other electronic gadgets.

The service parts industry is also being fuelled by strong vehicle sales. With more than 40 per cent of Indonesia's people living in rural areas, BGR has the infrastructure to enable nationwide coverage for FMCGs.

BGR was established by the Indonesian government in 1977 primarily to ensure the timely and efficient distribution of fertilisers and other products across the country. It has 615 operating warehouses spread across all 33 Indonesian provinces, with nine branches and 14 sub-branches directly serving customers.

Moving into end-to-end logistics more than 10 years ago, BGR has transformed itself into a one-stop shop.

The company provides land, sea and air transport, document handling and container depot services on top of its core warehousing business.

It also offers pest control, cargo surveying, packing and repacking as value-added services.

Leveraging landholdings in Kelapa Gading, a premier township north of Jakarta, BGR is looking to develop a trade zone and distribution centre in its 22-hectare property in the area.

In addition to serving as a warehousing and distribution centre, the zone would encompass an exhibition centre where foreign investors can showcase their products and services for the Indonesian market. BGR is open to forming joint ventures for the envisioned distribution and communications centre.

With its vast network and reliable service, BGR is a trusted partner for the high-volume distribution of Chinese and international goods, such as consumer electronics in Indonesia. The company handles ZTE's supply chain in Indonesia and is exploring alliances in Southeast Asia to harness the region's consumer-driven growth.

"Our plan is to expand to Asian countries such as Singapore, Malaysia, Thailand and Laos within the next two years," Mulyanto says. "By forming strategic partnerships with local logistics providers in these markets, we want to increase not only our network, but also our technological capacities in the international market."

The company welcomes similar partnerships with Japanese carmakers looking to set up logistics for their service parts market in Indonesia.

"We aim to be a global player in logistics," Mulyanto says.