Indonesia: Transport companies pivot to logistics business

State-owned airline Garuda Indonesia and train operator Kereta Api Indonesia (KAI) are pivoting their businesses to logistics as the pandemic wears on.
By: | November 24, 2020
Topics: Indonesia | News | Restructuring

Garuda Indonesia will venture into cargo services, specifically export shipping, and charter flights. Its president director Irfan Setiaputra said the airline has eschewed other businesses such as a digital platform for Muslim travelers by AirAsia and pop-up restaurants by Thai Airways as these “would not have a significant impact financially” and do not create a good image for the company. 

Garuda Indonesia’s cargo services will ply the Manado-Tokyo and Denpasar-Hong Kong routes to export marine and fishery products. In addition, the airline is collaborating with its logistics line Aerojasa Cargo to offer an app-based courier service KirikAja. 

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Meanwhile, KAI is partnering state-owned port operator Pelabuhan Indonesia (Pelindo III) to venture into logistics. 

The partnership will strengthen the logistic network to Tanjung Emas Port in Semarang, Tanjung Intan Port in Cilacap, Central Java, and Perak Port in Surabaya, East Java.  

“We are responsible for developing the Central Java and Southern Java regions. This collaboration will provide logistical convenience,” said KAI president director Didiek Hartantyo, adding that the partnership will benefit the community, particularly logistics operators.