Rhenus Indonesia: overcoming supply chain challenges in Indonesia
(Norwich, UK, 10/12/2019)
Sari Safianti, Managing Director of Rhenus Project Logistics Indonesia, discusses her company’s supply chain strategy in the face of limited IT infrastructure in the country.
As an international freight and logistics forwarding company, Rhenus Project Logistics Indonesia is part of Rhenus Group, and specialises in air, ocean and road freight.
Operating as just one component of the larger Rhenus Logistics Worldwide Organisation, Rhenus holds locations all over the globe. Following the company’s expansion into Indonesia in 2017, Rhenus’ headquarters is located in the capital of the country, Jakarta; it has an additional two offices in Semarang and Surabaya. The company offers a project logistics service which focuses on transporting heavy equipment and building parts for the oil and gas, mining, power, electrical and construction industries. However, Safianti, recognises that the nation is a challenging market to operate in. “Indonesia is a developing country where operations don’t run as easily as they do in Europe,” she admits. “When you invest money in Indonesia, it’s important to remember that you’re not likely to see a return on the investment for at least six months to a year.”
With a population of over 270mn, Indonesia is the fourth most populous country in the world. Safianti affirms one of the biggest challenges to overcome is finding a way to manage the 17,500 islands in Indonesia. “We have to ensure we’re granted logistics custom clearance more quickly. In Europe, this can be completed within hours, however, in Indonesia, it could take between five days and two weeks,” she explains. “This is especially true if there’s any issues with the documents or discrepancies on the physical goods.”
You can read more about Rhenus’ journey in the magazine.