• Indonesian archipelago plugged into successful road freight service spanning Singapore, Malaysia, Thailand, Vietnam and China
• DHL ASIACONNECT+ reduces costs and carbon emissions for businesses exporting to Kuala Lumpur, Penang and Bangkok

JAKARTA, INDONESIA - Media OutReach^[1] - October 16, 2019 - DHL Global Forwarding, the leading international provider of air, sea and road freight services, today rolled out DHL ASIACONNECT+ in Indonesia. The new less-than-truckload (LTL) scheduled service connects Indonesia to DHL ASIACONNECT, DHL's highly successful road freight network across Singapore, Malaysia, Thailand, Vietnam and China.

Source: DHL^[2]

"Businesses moving goods out of Indonesia now have a strong viable alternative to traditional air and ocean freight. With DHL ASIACONNECT, we have a robust scheduled road network across Indonesia's key ASEAN trading markets. Adding Indonesia to the service portfolio gives customers a new option for multimodal freight service, which is up to 35% cheaper and reduces carbon emissions by up to 54% compared to airfreight. It is also 65% faster as compared to ocean freight, providing the perfect middle-ground for customers who want more flexibility," said Vincent Yong, President Director, DHL Global Forwarding Indonesia. 

According to DHL's Global Connectedness Index, more than half of Indonesia's trade flows are regional, with 58% of its exports and 69% of its imports going to and coming from trading partners in Asia Pacific.

With DHL ASIACONNECT+, shipments from various cities in Indonesia, including Bandung, Balikpapan, Semarang and Lampung, containing locally-produced goods, such as textiles, machinery and electronic goods, are consolidated in Jakarta by air or truck before being air-freighted to Singapore and transported via road freight to Kuala Lumpur, Penang and Bangkok. An extension of the offering to Vietnam and China, as well as imports to Indonesia from the various cities along DHL ASIACONNECT will follow at a later stage.

Logistics costs and Indonesia's burgeoning economic growth

While the manufacturing sector in Indonesia has been named as the engine of its projected average economic growth of 6.3%^[3] till 2024, logistics costs are among the highest in Asia at 24%^[4] of the country's gross domestic product (GDP).

"There is significant value for businesses in Indonesia to strengthen their intra-Asia supply chain. Half of trade from Asia^[5] are bound for destinations within Asia and Asia's economies are forecasted^[6] to be larger than the rest of the world combined by 2020," said Bruno Selmoni, VP, Head of Road Freight & Multimodal ASEAN and South Asia, DHL Global Forwarding. "Indonesia is an excellent manufacturing hub for companies looking to diversify from China due to rising costs^[7]. Building a greater range of transportation options for businesses enables companies to better leverage Indonesia's strategic location as a production base for the increasingly affluent domestic and regional markets."

In line with Deutsche Post DHL's goal to reduce all logistics-related emissions to net-zero by 2050, the new multimodal solution helps the growing number of sustainability-conscious Indonesian businesses^[8] reduce their carbon footprint by up to half as compared to pure play air freight services.

DHL ASIACONNECT+ offers, in addition to cost savings and reduced carbon emissions, a standard tariff that helps customers manage their costs, a single point of contact for end-to-end shipments and online track and trace capabilities using the DHL Interactive platform^[9]. Security features in the trucks include GPS tracking, advanced air suspension to minimize impact to cargo, an emergency trigger button linked to a 24/7 dedicated network security and command control room.

Note to editors: Find out more about Indonesia's vision to become a global maritime hub on logisticsofthings.dhl.^[10]

References

1. ^{^} Media OutReach (www.media-outreach.com)
2. ^{^} DHL (logisticsofthings.dhl)
3. ^{^} average economic growth of 6.3% (www.thejakartapost.com)
4. ^{^} highest in Asia at 24% (databoks.katadata.co.id)
5. ^{^} Half of trade from Asia (www.mckinsey.com)
6. ^{^} forecasted (sbr.com.sg)
7. ^{^} rising costs (www.mckinsey.com)
8. ^{^} growing number of sustainability-conscious Indonesian businesses (www.ey.com)
9. ^{^} DHL Interactive platform (dhli.dhl.com)
10. ^{^} Find out (logisticsofthings.dhl)