Cainiao Group, the logistics arm of Alibaba Group, has launched its first warehouse in Jakarta, Indonesia, as part of its regional cHub expansion plan.
The new Cainiao Cikarang Logistics Park is part of a regional warehouse network of Cainiao Hubs, or cHubs, in Southeast Asia and is the third warehouse in the network. Situated in GIIC Deltamas Cikarang, Bekasi Regency, east of Jakarta, the project has a total land area of 320,000m2 and encompasses six warehouses, spanning 170,000m2.
To integrate sustainability initiatives into the project, skylights were incorporated into the rooftops of all six warehouses that 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 where ventilation louvers installed on the roof use air convection to dissipate indoor heat, ensuring a comfortable environment and achieving energy-saving objectives.
The facility is strategically located near factories to support the local manufacturing industry. The vision is for Cainiao Cikarang Logistics Park to pave the way for future full chain capabilities to support manufacturers for their logistics and trading needs, such as fulfillment 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).
Before 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.
There are more than 62 million small and medium-size enterprises (SMEs) in Indonesia, according to the World Economic Forum. E-commerce revenue in Indonesia is expected to reach US$44.81bn in 2023 and grow at 10.44% annually to reach US$66.66bn in 2027. This indicates strong potential and demand for reliable warehousing capabilities that can support the rapid e-commerce growth and rising customer expectations for fast and affordable deliveries.
This news comes after Cainiao’s announcement in late 2021 to roll out a regional warehouse network in Southeast Asia to support local B2B and B2C businesses. Across the network in Southeast Asia, Cainiao cHubs are located near key transportation nodes and manufacturing hubs to boost their physical connectivity to markets, which safeguards the trade ecosystem for partners and customers and ensures a resilient supply chain. 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.
Eric Xu, vice president at Cainiao Group, said, “We have witnessed immense potential in Southeast Asian region and have been actively investing to expand our warehouse network in order to cater to the needs of local businesses. 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.”
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