Sojitz Logistics establishes Logistics Company in Indonesia
-New company will meet all ground, marine, and air transport needs-
Jun. 20, 2013
Sojitz Logistics Corporation
Sojitz Logistics Corporation established PT. IS Jaya Logistik (ISJL) jointly with Isewan Terminal Service Co., Ltd., and a local Indonesian partner to provide comprehensive logistics services in Indonesia. The new joint venture company is based in Sojitz developed industrial park, the Greenland International Industrial Center (GIIC).
In addition to GIIC, Sojitz is developing industrial parks in Vietnam and India, and the Sojitz Group provides comprehensive support for businesses establishing overseas operations including assistance with procedures for establishment of local subsidiaries and plant building construction as well as logistics functions such as procurement, importing, exporting, customs clearance, and transport of production facilities prior to operation and warehousing and logistics services after the start of operations and procurement of raw materials.
GIIC is located in Kota Bekasi Province, 37 km east of Jakarta, the capital city, and is directly linked to the Cikampek Highway by an exclusive interchange, providing convenient access to the Tanjung Priok Port and Jakarta International Soekarno-Hatta Airport. It is also located in the center of the industrial district to the east of Jakarta that runs along the highway, making it an ideal location for access to peripheral industrial sites.
Sojitz Logistics has provided logistics supports through its business sites in ASEAN countries to Japanese companies establishing overseas operations. The use of production plants in Indonesia has been accelerating in recent years, and ISJL will utilize its ideal GIIC location to reinforce optimal logistics proposals and services from plant construction to operations and develop the logistics business. PT. Isewan Indonesia, a Sojitz Logistics partner, is currently constructing a heavy machinery and general freight warehouse (equipped with a 30-ton overhead crane) at its 8.8 ha site within the GIIC and will enhance Industrial Park Logistics Services (IPLS) not only for companies located in the park but for businesses located throughout the Jakarta region.
The Annual economic growth of Indonesia has been staying over 6% for the past five years and has maintained the most stable economic growth compare to the other ASEAN countries. As a result of the growth in GDP, internal demand for motorcycles, automobiles, and household electronics are the main factor of driving the Indonesian economy. In the automobile industry, 2012 new car sales reached over 1 million units sales(1.11 million units) and increasing vehicles sales are expecting in 2013 from providing more economical fuel efficiencies vehicle such as compact cars.
In addition, Indonesia is signing free-trade agreements both inside and outside ASEAN and its importance as a production site is increasing, giving rise to the need to distribute the various risks caused by over concentration and to build solid production systems. As a result, ground, marine, and air transport needs are increasing not only within ASEAN, but also with India and China as ASEAN is treated as one region, sharing components.
Location of ISJL
Overview of ISJL
Name : PT. IS Jaya Logistik
Location: In a PT. Isewan Indonesia warehouse (near the GIIC entrance)
Capital: 17.2 billion rupiah (approximately 180 million yen)
Shareholders: Sojitz Logistics: 24.5％
PT. Isewan Indonesia: 24.5%
Local partner (MBL): 51.0%
Start of operations: Scheduled for July 2013
Business activities: Domestic logistics services (IPLS, domestic logistics, warehousing services, etc.)
International logistics services (integrated transport services for facilities and
machinery, CBTS, import and export forwarding services, customs clearance
Overview of GIIC
An industrial park located within Deltamas City, an integrated urban development project (total land area of approximately 3000 ha includes industrial parks, residential and commercial districts, and Kota Bekasi public facilities) being developed jointly with Sinar Mas Group, Indonesia's largest Chinese-owned conglomerate.
Official name: Greenland International Industrial Center
Land area: Approximately 1,300 ha (Phase I: 700 ha, Phase II: 600 ha)
Overview of PT. Isewan
Name: PT. Isewan Indonesia
Location: Near the entrance of the GIIC (Greenland International Industrial Center (GIIC)
Block AA No. 26, Kota Deltamas, Desa Sukamahi, Cikarang Pusat, Bekasi,
Representative: Tadashi Ito
Capital: $20 million (approximately 2 billion yen) (wholly owned by Isewan Terminal Service
Business activities: Warehousing
Overview of IPLS
Industrial Park Logistics Services (IPLS) are one-stop solutions that provide full support to customers that are establishing operations in overseas industrial parks. Sojitz Logistics makes use of this extensive experience and lowball information network to assemble individual services for each customers and promises to reduce customer burdens.
・ Overseas development survey support
・ Comprehensive management of plant facility import schedules and consulting on tax exemption
・ Centralized management of production facility transport and relocation
・ Procurement of support and transport management for raw materials and semi-finished products
・ Warehouse management in industrial parks and transportation services inside and outside industrial
・ Domestic sales logistics of products
・ Import customs clearance support
・ Import of raw materials, semi-finished products, components, and products from overseas locations
・ Export of products, components, semi-finished products, and raw materials to overseas locations
・ Complementary logistics within Asia
・ Utilization of a logistics network linking industrial parks under development by Sojitz in Vietnam, Indonesia,
・ Creation of supply chain networks within Asia
・ Support relating to compliance with transport laws and regulations in each country
・ Consulting on logistics improvement and reform