JD.id, the local unit of JD.com, the largest online and offline Chinese retailer, plans to build around three to four warehouses across the country this year in order to provide more efficient services to its customers.
“Our focus is now adding more warehouses because it will cut the delivery time [of our parcels]. It will enable us to offer better pricing and service,” Teddy Arifianto, the company’s head of corporate communications and public affairs, told reporters on Thursday.
He said the opening of new warehouses would help absorb more local talent and trigger business activities in regions where the buildings were located. Currently, JD.id employs more than 1,400 people, with the majority of them working in its warehouses and logistics unit.
The company, formally PT Jingdong Indonesia Pertama, already had five warehouses in Jakarta, Surabaya in East Java, Pontianak in East Kalimantan, Medan in North Sumatra and Makassar in South Sulawesi.
Teddy said the company was considering opening a warehouse in Papua in the future to cater to growing demand there, but it had yet to set a definite time for the establishment.
JD.com corporate vice president Gloria Li said Indonesia, with its growing young population, offered big potential for e-commerce businesses, of which penetration remained under 3 percent, far lower than 18 percent seen in China.
“Young people nowadays tend to fulfill their needs through the internet, either for shopping or entertainment. We see that there is high potential in this sector,” she said.