Danantara merges seven state logistics firms to boost efficiency

Indonesia's sovereign wealth fund Danantara said on Tuesday it had merged seven state-owned logistics companies as part of a broader effort to improve efficiency, reduce costs and strengthen the country's logistics sector.

PT Danantara Asset Management (DAM), the asset management arm of Danantara, said the consolidation aims to reduce fragmentation among state-owned logistics companies, eliminate overlapping services and create a more integrated national logistics ecosystem.

"The merger is intended to reduce fragmentation among state-owned logistics companies, optimize economies of scale, and eliminate overlapping services that have long hindered operational efficiency," Aurelius Altius Rosimin, senior director of corporate strategy at DAM, told reporters after the signing of the shareholders agreement and merger deed in Jakarta.

The merged companies are Pelindo Sinergi Lokaseva Multiterminal Indonesia, Pelindo Sinergi Lokaseva Prima Indonesia Logistik, Pos Logistics, Pelni Logistics, PT Kawasan Berikat Nusantara (KBN), PT Varia Usaha Dharma Segara (VUDS), and Krakatau Integrated Logistics.

Aurelius said the consolidation is expected to integrate logistic services across the supply chain, expand business scale, improve operational efficiency and enhance the competitiveness of Indonesia's logistics industry.

The move also supports the government's long-term development plan for 2025-2045 and President Prabowo Subianto's "Asta Cita" development agenda, he said.

Indonesia has long sought to reduce logistics costs, which remain higher than those of many Southeast Asian peers, as part of efforts to improve the country's competitiveness and attract investment.

Separately, PT Pos Indonesia President Director Daud Joseph said the state-owned postal operator's nationwide infrastructure would support the integration of multimodal logistics services and the digitalization of the logistics network.

Pos Indonesia operates 5,597 service points across the country, supported by more than 8,000 vehicles, serves over 2.2 million customers and handles more than 300,000 parcels daily, he said.

Daud said the integration would be implemented in phases under good corporate governance principles and would not disrupt services.

"Our primary commitment is to ensure uninterrupted services for all customers throughout the transformation process," he said.

Editing by Reiner Simanjuntak