• Garuda Cargo is Advised to Market Regional

    JAKARTA – PT Garuda Indonesia (Persero) is being actively developing cargo services are advised to play in the regional market.

    Daily Chief of the Logistics Association of Indonesia (ALI) Mahendra Rianto said that state-owned enterprises in the field of air transportation should Garuda share its role with private parties.

    Mahendra assessed that there should be anticipated delivery of electronic trading business through the air. Garuda as a SOE should create air cargo for logistics service providers.

    “If you want to build e-commerce logistics infrastructure, Garuda must support superstructure for e-commerce,” he told Bisnis on Thursday (18/1/2018).

    According to him, air cargo service requires a large investment so that Garuda Indonesia is the right party to provide this.

    Do not let the Garuda cargo service center even kill small players. According to ALI data, five to 10 major players in courier services control 80% of the market, the rest is controlled by small players. “Garuda must take sides, as SOEs do not play in the realm of courier services,” Mahendra asserted.

    He suggested that Garuda should be a provider of air cargo infrastructure such as providing cargo vessels, lanes for courier services, and the like.

    That way, Garuda protected from dominating the market downstream. If not, ALI has already assessed that the company has done a monopoly. ALI did not hesitate to bring to the realm of law. “We will sue it for competing with SMEs.”

    As a SOE with such great assets, Mahendra suggested Garuda play abroad. The private sector will support it and that is the role of BUMN because it will expand the network of all parties.

    ———
    Sources: http://industri.bisnis.com/read/20180118/98/728165/garuda-kargo-disarankan-incar-pasar-regional
    Translated by Aryaputra PandeBIC

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