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Online marketplaces test delivery drones in Indonesia

Under its global smart supply chain network, China’s second-largest online retailer JD.com has tested drones in Indonesia following the government’s approval earlier this year as it wants to expand to overseas markets.

Ghina Ghaliya (The Jakarta Post)
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Beijing
Thu, June 27, 2019 Published on Jun. 27, 2019 Published on 2019-06-27T09:06:56+07:00

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Online marketplaces test delivery drones in Indonesia Illustration of drone delivery. (Shutterstock/IgorZh)

A

s logistics remains a big issue in e-commerce expansion in Indonesia, online marketplaces are showing an interest in investing in unmanned aerial vehicles (UAVs), also known as drones, to help reach rural areas across the country.

Under its global smart supply chain network, China’s second-largest online retailer JD.com has tested drones in Indonesia following the government’s approval earlier this year as it wants to expand to overseas markets.

“We want to transfer our cutting-edge tech to the overseas market, especially Indonesia. That was the first time we exported the technology [from China],” the company’s director of corporate strategy and investment, Yao Xiao, said during a media roundtable session in Beijing recently.

Spending the past year building the network, the company now operates its drone delivery service in 100 villages in rural China. Over 90 percent of the products it ships qualifies for same-day or next-day shipping.

Xiao said the company was aware that drones were highly regulated everywhere, including in Indonesia, which had no regulation on commercial drone deliveries. However, it said it would work closely with the government to make the plan a reality.

“We are really committed to this market. When we think about how many islands there are in Indonesia, it’s pretty impressive and we are trying to apply the same technology that works in China,” she said.

Homegrown e-marketplace Bukalapak has also tested delivery drones. It recently held a trial in Tangerang, Banten, with a limited flying radius of under 5 kilometers.

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