Ecommerce Contributed to 60% of JNE’s Revenue in First Semester of 2016

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Indonesian express and logistics courier service company, JNE revealed that 60% of its revenue from the first semester in 2016 came from ecommerce. Vice President Marketing of JNE, Eri Palgunadi stated that among the 60%, an estimated 30% is coming from the registered big ecommerce players like Blibli and Lazada.

JNE has built a lot of warehouses to accommodate the surge of ecommerce deliveries. One of them is in Wangon, Banyumas, Central Java. With the existence of this warehouse, they are hoping to push down the cost for the customers in the eastern Java area. Eri claimed now the delivery costs to this area is down to single-digit because of the closer distance.

In addition, JNE has also built a warehouse in Medan close to Silangit airport, Batam, Bandung and extending an existing one in Soekarno-Hatta airport.

Investing in technology and supporting businesses

In the beginning of the year, JNE announced that it was going to put an investment of $34.8 million to support the growing ecommerce sector in Indonesia. They will set aside $4.2 million (55 billion IDR) of investment to develop their IT infrastructure and the rest, $30.6 million (400 billion IDR) into business-supporting infrastructure like warehouse, etc.

JNE plans to expand their business area in Cikarang, Karawang and Purwakarta to support the needs of ecommerce players but despite the technology services that it provides, Eri claimed that JNE is not going to become an ecommerce-only company.

“We are still a logistics company, that’s why we are planning to develop trucking, because that is our own fleet. And then we are also setting up a warehouse in Cibatu, Cikarang of 25.000 x 3.000 sqm.” added Eri.

A version of this is appeared in on July 30. Read the full article in Bahasa here