Astra Invites Hongkong Land And LOGOS To Jointly Create A Logistics Warehouse Management Company

Astra with Hongkong Land through PT Astra Land Indonesia and LOGOS. (Photo: Doc. Astra)

JAKARTA - PT Astra International Tbk (ASII) together with Hongkong Land (HKL) announced the formation of a joint venture (JV) with LOGOS SE Asia Pte Ltd (LOGOS). These three companies agreed to manage and develop modern logistics warehouses in Indonesia.

Astra and Hongkong Land through PT Astra Land Indonesia (ALI) will form a joint venture company with LOGOS to manage modern logistics warehouses in Indonesia with an initial focus on the Greater Jakarta area.

President Director of Astra Djony Bunarto Tjondro said the formation of a joint venture with LOGOS shows the company's confidence in the logistics sector. "We want to expand the availability of modern warehouse facilities to support the logistics sector in Indonesia and contribute to Indonesia's national economic growth," Djony said in his statement, Tuesday, February 8.

Based on data held by Astra from Mordor Intelligence, the shipping and logistics market in Indonesia, which includes modern warehouses, is estimated to increase from USD 81.3 billion in 2020 to USD 138.04 billion in 2026. The increase in investment is mainly due to driven by the growth of e-commerce which is supported by the rapid advancement of digital technology.

Meanwhile, Indonesia's modern warehousing sector is estimated to have sufficient room to grow because logistics outsourcing in Indonesia can still be optimized compared to other countries in Southeast Asia, supported by the increasing demand for modern warehouses in the Greater Jakarta area.

Chairman of LOGOS Southeast Asia Stephen Hawkins said, "We are very pleased to work with Astra and Hongkong Land in meeting the growing demand for modern logistics warehouses and of course to support Indonesia's economic growth.

"The establishment of this JV will certainly increase the synergy between the two companies; ALI has a good track record in the property market and LOGOS has strong/wide experience in developing sustainability and integrated logistics solutions in local and international markets," he added.

LOGOS is a logistics specialist that is growing dynamically with operational areas covering Australia, China, Singapore, Indonesia, Malaysia, Vietnam, India, New Zealand, South Korea and Japan. Since 2017, LOGOS has been present in Indonesia with several modern warehouse portfolios located in Cibitung, Cileungsi, Cikarang, and Pondok Ungu.