In 2017, Indonesia’s population totalled around 262 million souls with more than half— around 143 million—as active Internet users according to the Association of Indonesian Internet Service Providers (APJII). Among Asian countries, excluding Taiwan, Indonesia’s growth in e-commerce spending is ranked among the top, as revealed by the 2016 Google and Temasek Holdings report.
“After I came back from abroad, I realised that people are converting to online because there are fewer overhead costs and more traffic, and subsidies are a given,” says the Co-Chief Marketing Officer of StoreSend eLogistic Indonesia (SSI) Gary Tanoesudibjo. “Shopee, for example, gives official shops access to 2.5 million unique visitors daily.” Seeing an opportunity to cater to the growing e-commerce field, Gary did some research and learned about e-fulfilment services, which fulfil orders for brands that are directly serving clients in small quantities—and, thus, SSI was born.
Gary then joined hands with Joe Khoo and Tommy Yong, the two founders who first opened the iStore iSend fulfilment centre in Malaysia back in 2009, to open SSI together with Dos Ni Roha (DNR) Distribution. As the third expansion following Singapore in the last quarter of 2016, SSI worked under DNR from early 2017 before legally obtaining the license at the end of the year.
E-commerce players are able to also use the three Malaysian and one Singaporean fulfilment centres besides the four located in Jakarta, Medan, Makassar, and Surabaya. “Moreover, DNR has 55 years of success in distributing medical equipment, pharmaceuticals, and consumer products,” says Gary. “In total there are 39 warehouses, 17 sub-distributor branches, and 42 affiliated warehouses all around Indonesia under DNR.”
All of these spaces are ready to take on the surge of e-commerce players that comes with the growth of buyers. “The 2016 Google report also stated that Indonesia’s e-commerce industry is growing at 39 per cent yearly, which means that by today SSI should be delivering 750,000 packages daily on all platforms—however, we’re closer to 1.5 million already,” Gary says. He adds that Telkomsel will close down the 2G network by the end of the year, which means that around 40 million people will have to convert to the 3G network and will have access to online shopping.
SSI implements a warehouse online delivery and inventory system to manage all these comings and goings on multiple channels—from order history to inventory management, return processes, and so much more—and all available in real time. However, Gary remarks that SSI is not solely a logistic service. “It’s closer to being called an enabler with two components: fulfilment in the logistics area and marketing in the online store management area,” Gary says. Further into the topic, he explains that the e-commerce ecosystem is still growing and is not yet mature, which is why big brands are still focusing on offline areas and online is thought to be an expensive investment cost.
This story appears in the June 2018 issue of Indonesia Tatler. For the full story, grab the copy at your nearest newsstands, or subscribe here.