Meet the company: DHL Indonesia prime for significant growth
When DHL Indonesia celebrates its 50th anniversary in 2023, it will likely be a big affair.
As part of Deutsche Post DHL Group – the world’s leading logistics company – DHL Indonesia has seen its business go from strength to strength over the past five decades, and particularly since the onset of the pandemic.
First established in 1973 and operating three divisions of DHL Group collectively (DHL Express, DHL Supply Chain and DHL Global Forwarding) to deliver end-to-end supply chain services, DHL Indonesia now employs more than 2,300 employees, and operates 525,000sqm of warehouse space and some 120 flights daily – connecting Indonesia businesses through DHL's global network covering 220 countries and territories.
Thanks to investment of more than US$140.5m over the last decade, and an increase in business during the pandemic, DHL Indonesia is now “poised for greater growth”, says Frank Appel, CEO, Deutsche Post DHL.
DHL Indonesia witnessed great growth during the pandemic
It’s no secret that the pandemic saw increased demand for logistics services, leading to growth and expansion of DHL Indonesia.
“The pandemic made clear that logistics matters more than ever. With present volatility and increasingly complex environments, customers are turning to reliable logistics partners with an international footprint, established infrastructure and broad expertise," Frank says.
DHL Global Forwarding Indonesia, the air and ocean freight specialist, has seen its workforce grow by 10% since 2021. Its network was tapped for the delivery of COVID-19 vaccines, and the business delivered vaccines across 24 locations in Indonesia, handling importations via commercial and chartered flights. The vaccines had to be transported with stringent temperature control and quality assurances.
More recently DHL was responsible for the logistics for Indonesia's first Formula E race. “We provided multi-modal end-to-end logistics services including value-added services, such as customs clearance, physical inspection and trucking, using state-of-the-art equipment for the moves,” Vincent Yong, President Director, DHL Global Forwarding Indonesia, says.
Investing in Indonesia for further growth
DHL Indonesia’s significant growth during the pandemic is leading to further investment, adding to the EUR 140 million invested in the past 10 years.
DHL Express, the Group's leading express provider, has accelerated its investments in Indonesia. The company increased its workforce by 7% in 2021 and has seen a further 13.5% growth in its employee base in 2022. The division further announced investments earmarked for four facilities in Indonesia in the next two years.
“We've earmarked investments of US$25.09m for fleet replacements and four new facilities in the next two years, namely new Gateways in Surabaya and Denpasar, and new Service Centres in Bekasi and Tangerang,” says Ahmad Mohamad, Senior Technical Advisor DHL Express Indonesia.
"DHL Express already operates 48 retail outlets and service points across key locations in Indonesia. Our investments will cater to the growth in the cities, enabling us to better support our customers, in line with the economic growth of the country."
Sister company, DHL Supply Chain (DSC) Indonesia, the contract logistics specialist within the Group, also previously announced plans to invest US$25.09m for its upcoming 40,000-sqm facility in Cikarang, West Java. Due for completion in 2023, the DHL Maheswara Green Logistics facility is the company's seventh multi-user facility in Indonesia.
These large multi-user facilities are designed to support a broad range of goods from diverse industries providing flexibility to a wide range of businesses operating in Indonesia. The new facility is also purpose-built to feature sustainable solutions to reduce carbon emissions.
Growing sustainably – from green innovations to investing in people
In fact, sustainability takes centre stage at the Deutsche Post DHL Group, whose goal is to achieve zero-emission logistics in 2050. The Group previously announced investment of EUR 7 billion in clean operations and climate-neutral logistics through to 2030.
Globally, since January 2021, DHL Global Forwarding has neutralised the carbon emissions of all less-than-container load (LCL) ocean freight shipments – including those to and from Indonesia – using sustainable marine fuels; and all at no extra cost to customers.
The global business has also signed an agreement with shipping firm Hapag-Lloyd to use advanced biofuels, with Hapag-Lloyd initially shipping 18,000 TEU of DHL's volume using advanced biofuels.
Across all our businesses in Indonesia, new facilities are now installed with solar panels, solar lamps, LED lights and other energy-saving solutions, and at DHL Express Indonesia, electric motorbikes and delivery vans are now being used with plans to electrify at least half of the fleet by 2024.
Motivated People the cornerstone of success
It is in the building of its workforce and culture where DHL Indonesia has had particular success, becoming a role model for the entire global operation.
Frank points to DHL Indonesia as an example of a business, that with the right strategy, a motivated workforce, and a positive outlook, can achieve great results.
"Across the Group, we believe in investing in our people, because engaged and motivated employees deliver great service quality to our customers, and that, in turn, drives our business,” says Frank.
Across Indonesia, all three business units are awardees of the global Great Place to Work™ award, recognising the best workplaces. DHL Express was named the second best place to work in 2022, and 98% of employees at DHL Supply Chain say it is a “great place to work” compared to 53% of employees at a typical global company.
Key to the Group's workforce success has been a bespoke Group-wide program called Certified introduced to accelerate the cultural and developmental DNA based on customer focus and trust.
The program includes inspiring training and engagement content delivered by senior leaders with the business encouraging, recognising, and rewarding vital behaviours. All employees in Indonesia are Certified-trained, with constant additions to their Certified journey and training as they progress within the company.
One of its more recent initiatives, Wellbeing at DHL Global Forwarding, is a program that contributes to the company’s employee engagement, examining how employees’ tasks, expectations, stress levels, and work environment affect their overall health and satisfaction.
“People are at the centre of everything we do, and we have made it our purpose to motivate and inspire our employees, in line with our mission to be their Employer of Choice,” says Kelvin Leung, CEO, DHL Global Forwarding Asia Pacific.
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