Danantara Targets the Completion of the Consolidation of State-Owned Logistics Companies in 2026, Pos Indonesia as the Parent Company

JAKARTA - Danantara Indonesia targets the consolidation of State-Owned Enterprises (BUMN) in the logistics sector to be completed by 2026. In this scheme, PT Pos Indonesia (Persero) will be designated as the national logistics holding company.

Danantara Indonesia Chief Operating Officer (COO), Dony Oskaria, said the consolidation includes 21 logistics companies, both state-owned enterprises and subsidiaries.

"This year we will consolidate all our logistics companies under one logistics company. We have an anchor, namely PT Pos," said Dony in a discussion in Jakarta, Wednesday, January 28.

Dony said that the majority of red plate logistics companies still face fundamental problems in the business model. The lack of clarity in business segmentation, whether it is in the first mile, middle mile, or last mile, makes the company's performance not optimal.

Furthermore, Dony said that as a result of the total 21 logistics companies, as many as 20 companies were recorded to have suffered losses.

"More ironically, he actually only carried out transactions from his parent company. So practically that these 20 companies do not have a proper and correct business model," said Dony.

Through this consolidation, said Dony, the government will carry out a thorough improvement of the performance of state-owned enterprises in the logistics sector. PT Pos Indonesia, which has an extensive distribution network with around 4,000 offices throughout Indonesia, will be used as the backbone of national logistics operations.

After the merger process is completed, Dony continued, the logistics company resulting from the consolidation will be redesigned in terms of business models and managed by professional personnel to increase added value and competitiveness, both nationally and globally.

"We consolidate into one, Danantara logistic company. Of course, this company will be redesigned its business model, then we hire professionals who are reliable to run this company so that he can provide added value," said Dony.

Dony also emphasized that the consolidation of logistics SOEs is also part of the government's strategy to reduce national logistics costs, which have been high and have an impact on the low competitiveness of Indonesian products.

"Because after all, Indonesia is one of the countries with the highest logistics costs, which makes our products uncompetitive. So we say, SOEs must play a role here, at least to reduce our logistics costs," explained Dony.