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Delivery company to provide B2C services, targets double revenue after IPO
Krida Jaringa, which at present focuses on business-to-business (B2B) and moving services, raised Rp 30.3 billion (US$2.15 million) during its initial public offering (IPO) between June 21 and 24.
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On delivery: A worker of the Malang Central Post Office prepares packages for delivery. Delivery and logistics company PT Krida Jaringan Nusantara raised Rp 30.3 billion (US$2.15 million) during its initial public offering between June 21 and 24. (JP/Aman Rochman)
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elivery and logistics company PT Krida Jaringan Nusantara plans to expand its business by providing business-to-customer (B2C) delivery services after selling shares to the public in June.
“This year, we want to focus on establishing B2C delivery services via e-commerce in Greater Jakarta and then expand to other areas,” corporate secretary Alexander R. Hasibuan said after witnessing the listing of his company’s shares on the Indonesia Stock Exchange on Monday.
Krida Jaringa, which at present focuses on business-to-business (B2B) and moving services, raised Rp 30.3 billion (US$2.15 million) during its initial public offering (IPO) between June 21 and 24.
According to the company’s prospectus, it will use most of the proceeds to buy land and build a package-sorting center and headquarters there.
In the B2B sector, KJN delivers bulk mail and documents for companies such as Bank Rakyat Indonesia, PT Kopindosat and PT XL Axiata, according to its prospectus.
In 2018, KJN recorded revenue of Rp 6.4 billion, an 18.48 percent decrease from Rp 7.94 billion the previous year. The decrease was caused by a 22.39 percent decline in demand for bulk mail delivery.
As a result, its profit dropped 73.91 percent to Rp 366.4 million in 2018 from Rp 1.03 billion in 2017.
However, Alexander said he remained upbeat with the prospects of KJN’s new B2C delivery services, saying that e-commerce had shown rapid growth in recent years.
“We are upbeat that the market penetration of our B2C deliveries will grow much faster than our B2B services. That’s why we are targeting our revenue to grow more than 100 percent to Rp 13.7 billion this year,” he told The Jakarta Post.
To support the new services, KJN will open 400 new outlets via partnerships this year. The number was expected to reach 1,000 by 2020, he said.
The company, which is now 30 percent owned by the public, saw its share price soar 49.5 percent to Rp 302 on listing day on Monday from the IPO price of Rp 202. (nal)
