DHL expresses the importance of logistics in Indonesia and the prospect of continuing sustainable business in the long term ahead. For that, DHL Supply Chain (DSC) the parent company will invest €25 million in Cikarang, West Java.
Deutsche Post DHL Group (DPDHL), is a global logistical company that was established in Indonesia in 1973. DHL operates 3 businesses collectively offering an end-to-end supply chain. One of them, DHL Supply Chain, specializes in the logistical section; secondly, DHL Express, specializes in express services; while, DHL Global Forwarding, specializes in airlifts and sea transports. DHL in Indonesia has 2,300 employees, with 525,000 square meters (sqm) warehouses and operates 120 flights each day. As a whole, DHL includes 220 countries and territories.
Sustainable is the key to success
DHL Supply Chain (DSC) will invest €25 million in the construction of a facility with an area of 40,000 sqm in Cikarang, West Java. According to DHL, the facility will be operating by 2023.
The facility, which is called DHL Maheswara Green Logistics, is the seventh largest multi-user in Indonesia. It is created to support many logistics and various industries bringing higher flexibility for many businesses operating in Indonesia. The facility was planned as a sustainable form of building to decrease carbon emissions.
Sivananthan SKS, President Director of DHL Supply Chain Indonesia, explained: “Sustainable is the key for DPDHL Group to achieve logistical zero-emission by the year 2050. The group had informed that it will invest €7 million for clean operations and climate-neutral logistics by 2030.”
The service was without any additional payment to support the decrease of carbon emission from the service GoGreen Plus, with a total of 370,600 logistical packages being sent since the program started.
On the other hand, DHL Express will be facilitating its couriers with electric motorcycles and electric vans for logistics. The company will soon plan to convert its logistical fleets into electric ones at least by 2024. Meanwhile, DHL Indonesia is facilitating new solar panels, solar lights, LED lights and other energy-saving solutions in all of its businesses. Furthermore, DHL had signed cooperation with Hapag-Lloyd in providing biofuel-based shipping.
While for growth, DHL in the last 10 years had invested about €140 million in Indonesia. DHL believes Indonesia has skilled workers that have innovative solutions for the market. DHL will be ready for bigger growth.
Challenges for logistical business in Indonesia
According to the Transportation Policy Agency of the Ministry of Transportation, in 2021 there were disruptions in logistics, supply chain and production and consumption which caused stagnation. The logistics industry experienced profit losses and financial problems.
However, with the government realizing the importance of logistics, they provide support through various policies that enhance the distribution of logistics giving a better service to the populace.
On the other hand, the digitalization effort and sustainability by DHL resulted in better survivability during the COVID-19 pandemic. According to the Transportation Policy Agency, logistics plays an important role during the pandemic for being transformed into online platform. Technology plays an important role in supporting logistics. Focusing on IT and distributing business logistics online will result in integration and an e-commerce environment.
