Indonesia’s PT Trikomsel Oke Tbk, a distributor and retailer of mobile phones and Singapore Post Limited (SingPost) Monday announced a joint venture to the fast growing e-commerce opportunities in Indonesia.
PT Trikomsel Oke Tbk will own a controlling stake of 67% in the JV while Singapore’s national postal service provider, through its wholly-owned subsidiary SP eCommerce, will have the remaining 33%, and the latter’s initial investment will be $1.1 million.
“This partnership will combine the strengths of Trikomsel’s significant distribution network in Indonesia and SingPost’s expertise in regional ecommerce and logistics operations to provide a full suite of end-to-end B2C ecommerce solutions to businesses and a seamless shopping experience for online consumers,” both companies said in a statement.
“SP eCommerce will continue to innovate on and deliver reliable ecommerce services including technology deployment, operations management, warehousing, linehaul and delivery, payment and parcel collection, digital marketing, and post-sales support, whereas Trikomsel will leverage its local experience to help optimize the online branded stores for the Indonesian market,” the statement added.
SingPost shares last traded at S$1.96 on March 6. It operates in about 15 countries in the region. Last year, China’s Alibaba Group had bought a 10.35% stake in SingPost, for $249 million, making it the second largest shareholder in publicly-traded company, whose biggest shareholder is government owned Singapore Telecommunications that owns around 25%.
According to Pak Sugiono Wiyono, President Director of Trikomsel, amidst the rapid growth of ecommerce sales globally, especially in Indonesia, the company was enthusiastic about the cooperation with SingPost to develop our ecommerce business in Indonesia.
“With solid expertise, technology and resources owned by both parties, we are optimistic that this cooperation will be able to meet and provide innovative, efficient and effective services to our customers across Indonesia, which in turn will provide benefits for both parties”, Pak Sugiono added.