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JD.ID denies disbanding its operations in the Indonesian market
Despite reports of JD Global's plans to pull the plug on its Southeast Asian operations have swirled for some time, JD.ID, its Indonesian counterpart, has denied the rumors
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Double Day, double sales: JD.ID employees check and sort out goods at the company’s warehouse in Marunda, Bekasi regency, West Java. (JP/Wendra Ajistyatama)
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espite reports of JD Global's plans to pull the plug on its Southeast Asian operations have swirled for some time, JD.ID, its Indonesian counterpart, has denied the rumors.
“Up until today, there has never been any talks regarding this [dissolution] issue in JD.ID’s management. … For us, everything is still on track, so there’s no reason to confirm [those] rumors,” a JD.ID spokesperson told The Jakarta Post on Wednesday.
That was until Chinese media reported the story recently, giving the news a more valid basis.
According to Sina, a Chinese online media company that first reported the news, not only would JD exit Indonesia, it was also planning to get out of the Thailand market with the decision to be carried out in the first quarter of next year.
JD Global, also known as Jingdong and JD.ID, is currently looking for investors to take over the shares of the e-commerce joint ventures in both countries as, despite its large investment, the company’s profits are still lacking. Sina reported that this might be the most important reason for the adjustment.
In order to reduce costs and increase efficiency, JD has been shrinking its businesses in sinking markets, as can be seen with Jingxi, a JD.com subsidiary, which has closed its business in numerous provinces in China, namely Fujian, Gansu, Guizhou, Jilin, Ningxia, Qinghai and Shanxi since June this year.
In a conference call, JD.com chief executive Xu Lei said that the second quarter of 2022 had been the most challenging quarter since Jingdong went public.
