Cainiao Group (Cainiao) has announced the launch of its first warehouse in Jakarta, Indonesia, as part of its regional expansion plan.
The logistics arm of Alibaba Group Holding Limited noted that Cainiao Cikarang Logistics Park in Jakarta, Indonesia is part of a regional warehouse network of Cainiao Hubs or cHubs in Southeast Asia and is the third warehouse in the network.
The project has a total land area of 320,000 square meters and encompasses six warehouses spanning 170,000 square meters and is located in GIIC Deltamas Cikarang, Bekasi Regency, east of Jakarta.
Cainiao said to integrate sustainability initiatives into the project, skylights were incorporated into the rooftops of all six warehouses, which facilitate normal operations in the facility during daylight hours without the need for artificial lighting, thereby reducing energy consumption for tenants.
The project also factored in local climate characteristics and implemented a natural ventilation system within the warehouse. Here, ventilation louvres are installed on the roof to utilize air convection to dissipate indoor heat, ensuring a comfortable environment while also achieving energy-saving objectives.
It added that it is strategically located near factories to support the local manufacturing industry.
"The vision is for Delta Mas Logistics Park to pave the way for future full chain capabilities to support manufacturers for their logistics and trading needs, such as fulfilment and sorting for local deliveries, import and export for B2B and B2C businesses, smart supply chain management, and logistics technology such as IoT, automation and warehouse management systems (WMS)," Cainiao said in a statement.
The Chinese logistics firm said prior to the official launch, the project received strong interest from local businesses and achieved a 75% occupancy rate.
Tenants include PT Senopati Fujitrans Logistic Services (Senfu), PT SGMW Indonesia (Wuling Indonesia), CJ Logistics, Klog, Haier and Lazada.
"We have witnessed immense potential in the Southeast Asian region and have been actively investing to expand our warehouse network in order to cater to the needs of local businesses," said Eric Xu, vice president of Cainiao Group.
"We are thrilled to finally announce this new warehouse, our first infrastructural investment in Indonesia and third in the region. Our strong network and expertise in logistics and supply chain capabilities will help our partners and customers in Indonesia accomplish more in less time and boost local and regional trade activities by streamlining workflows and processes across the value chain," he added.
Citing the World Economic Forum, Cainiao noted that there are more than 62 million small and medium-sized enterprises (SMEs) in Indonesia.
Additionally, eCommerce revenue in Indonesia is expected to reach US$44.81 billion in 2023 and grow at 10.44% annually to reach US$66.66 billion in 2027.
"This indicates strong potential and demand for reliable warehousing capabilities that can support the rapid eCommerce growth and rising customer expectations for fast and affordable deliveries," Cainiao added.
The announcement comes after Cainiao said in late 2021 that it plans to roll out a regional warehouse network in Southeast Asia to support local B2B and B2C businesses.
In addition to the Indonesia cHub, Cainiao's smart infrastructure business is currently expanding its overseas cHub warehouse network in countries such as Thailand and Vietnam.
"In the future, Cainiao's smart infrastructure business will continue to leverage its experience in global logistics infrastructure services to provide integrated logistics infrastructure networks and digital asset management services to global customers through [its] tripartite asset management operating system," the logistics firm said.
