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JNE to strengthen connectivity and e-commerce grip
User friendly: Courier JNE president director M
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User friendly: Courier JNE president director M. Feriadi (right to left), JNE Popbox CEO and co-founder Adrian Liem and Bank Permata IT head Marjuki Markhasan at the launch of the myJNE app in Jakarta on Monday. The mobile app allows customers to access seven new services as well as the old ones offered by the local firm. (JP/Wendra Ajistyatama) (right to left), JNE Popbox CEO and co-founder Adrian Liem and Bank Permata IT head Marjuki Markhasan at the launch of the myJNE app in Jakarta on Monday. The mobile app allows customers to access seven new services as well as the old ones offered by the local firm. (JP/Wendra Ajistyatama)
User friendly: Courier JNE president director M. Feriadi (right to left), JNE Popbox CEO and co-founder Adrian Liem and Bank Permata IT head Marjuki Markhasan at the launch of the myJNE app in Jakarta on Monday. The mobile app allows customers to access seven new services as well as the old ones offered by the local firm. (JP/Wendra Ajistyatama)
Courier service and logistics company PT Tiki Jalur Nugraha Ekakurir (JNE) aims to strengthen its land-courier business as well as its grip on e-commerce, which contributes to around half of its revenue, through the launch of seven new programs this year.
The new programs, including Android-based app MyJNE, locker-to-locker delivery JNE-Popbox and JNE trucking, are expected to help reach the company's targeted revenue growth of 30 percent this year.
The MyJNE application, for instance, will facilitate consumers' monitoring of the shipping status of their goods, check the location of the nearest JNE and aid interaction between buyers and sellers.
Meanwhile, JNE-Popbox will enable members of the JNE Loyalty Club to pick up goods from designated lockers at 32 locations across Jakarta.
'We think minimum growth will be around 30 percent this year, but our expectation is actually more than that. We're optimistic for 2016,' JNE president director M. Feriadi told the press on Monday.
He also said the company would invest in infrastructure and IT development to support its future business, with Rp 400 billion (US$29.9 million) going toward infrastructure expansion and Rp 55 billion to IT-related development.
The infrastructure development will include the construction of its new warehouses, including one to be built in Cikarang, West Java, on a 30,000-square-meter site, and the automation technology for the warehouses.
Construction on the Cikarang warehouse is slated to begin in first semester this year.
The IT-related development will include website improvements and the development of the mobile application.
With the new programs, the company also expected revenue from e-commerce to flourish as its JNE trucking service will soon be used by big e-commerce players.
JNE trucking, which operates throughout Sumatra, Java and Bali, accepts shipping orders for items of minimum 10 kilograms, as well as motorcycle shipping. The new program is slated to start operating this month.
'Next week, we'll launch the service with several big e-commerce players. So for players like Tokopedia, Bukalapak or Elevania, there will be an option of shipping using JNE trucking services,' JNE marketing vice president Eri Palgunadi said.
Eri said four to 10 trucks were ready to go and the company would add more in the future.
With the service, JNE plans to tap the boooming home-industry along Java's northern coast (Pantura) highway that will likely use the service for both business-to-consumer or business-to-business shipping.
So far, 80 percent of JNE's total revenue has come from the retail sector, which is dominated by online shops.
'Around 50 percent of revenue is from e-commerce. We hope that at least 10 percent of e-commerce shipping for items weighing more than 10 kilograms will be delivered through our service,' he said, adding that the company would also tap smaller e-commerce businesses that were not integrated into major platforms.
The company, which currently runs around 5,000 independent counters, will also increase its number of the counters by 500-1,000 to boost services.
JNE also works with international express service firm DHL to improve international shipment to the European region, as well as Hong Kong-based SF Express for shipments in Asia.
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