RII Holdings expands into Indonesian courier and logistics market

An exclusive report by Mohd Shukri Ishak

JAKARTA, Oct 4 (Bernama) -- Malaysian investment holding company, RII Holdings Sdn Bhd (RII), has established its footprint in Indonesia’s fast-growing courier and logistics industry by taking a 36.5 per cent equity interest in PT Pandu Siwi Sentosa (PSS).

This follows the signing of definitive agreements with PSS, its individual shareholders, SBI Islamic Fund (Brunei) Ltd (SBIIFBL) and Brunei's Finance Ministry on Tuesday to inject funds into the operations of PSS -- said to be among the top five courier and logistics players in the republic -- via part equity shareholding as well as through the provision of a convertible debt.

In a statement, RII said it sought to create synergistic values ​​for PSS, which operates under the brand Pandu Logistics, and contribute towards its growth in Indonesia.

Pandu Logistics is Indonesia's only cargo and logistics services provider that operates based on Shariah principles and has been serving the archipelago for over 27 years with an extensive network of more than 200 offices throughout the country. It has more than 1,500 dedicated employed professionals and trusted partners for various local and international companies in Indonesia for their logistics service needs.

RII is focused on investments in the courier, logistics and related digital businesses within the region.

With the signing, PSS’ individual shareholders led by its founder and president director Dr H. Bhakty Kasry will end up with a controlling 51 per cent stake, RII will have 36.5 per cent equity interest, and SBIIFBL, an Islamic financing fund established by SBI Holdings Inc of Japan, will hold the remaining 12.5 per cent.

The definitive agreements were signed by Bhakty), RII founder and executive chairman Rozilawati Basir, RII co-founder and executive director Indraa Izwaan, and SBIIFBL chief executive officer Amran Mohamad.

The ceremony was witnessed by Malaysian Ambassador to Indonesia, Zainal Abidin Bakar.

Without disclosing the amount of investment made, RII said Pandu Logistics stood to benefit from RII's expertise and focus on technological capabilities to expand its operations into the e-commerce and business-to-consumer (B2C) segments.

Meanwhile, Zainal Abidin said Malaysia recognised Indonesia as one of the market destinations in ASEAN and had shared good business relations for a long time.

“Indonesia is the biggest economy and market in ASEAN with a fast-growing middle class, young and educated population, which is an ideal export market for our businessmen," he said.

As the largest e-commerce market in the region, Indonesia could generate about US$20 billion in online sales by 2020, compared to US$2.5 billion in 2017, the ambassador said.

"We believe that by collaborating with the private sector in Indonesia will be the best approach in improving our trade figures and taking advantages of the benefits under the ASEAN Economic Community.

"Malaysia is in need to expand its trade with Indonesia not only in the traditional sectors but also in the trade services such as logistics," he added.

RII has been actively searching for investments with various couriers, logistics and related digital businesses to its regional presence within the various ASEAN countries.

With this significant investment and Pandu Logistics sharing similar corporate culture and business acumen, RII said, it had found a strong courier and logistics partner in Indonesia.

-- BERNAMA