Taipei, Tuesday, October 17, 2017 12:08 (GMT+8)
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Synnex to set up logistics center in Indonesia
Aaron Lee, Taipei; Adam Hwang, DIGITIMES [Thursday 12 October 2017]

IT and consumer electronics distributor Synnex Technology International has announced a plan to build a logistics center in Indonesia with estimated investment of NT$600 million (US$19.8 million), consisting of NT$130 million for land acquisition, NT$290 million for building construction and NT$180 million for automated warehousing equipment and other facilities.

To tap the Indonesia market, Synnex and Indonesia-based IT business group PT. Metrodata Electronics set up a joint-venture, PT. Synnex Metrodata Indonesia, in 2011. With annual consolidated revenues and operating profit having hiked by over four times and over 10 times respectively since 2011, the joint-venture has become the largest IT product distributor in Indonesia.

The joint-venture has set up a network of 20 operation centers and 14 warehouses to supply IT hardware/software and systems as well as handsets and value-added services for more than 4,500 local sales agents in about 150 cities around Indonesia.

Located in a suburban area of Jakarta, the new logistics center will have 15,000 automated warehousing units on handling space with total floor area of 25,000 square meters. The logistics center will have reserved space to house 9,600 additional automated warehousing units to meet expanded demand in the future. Upon completion of the logistics center, Synnex's logistics capacity in Indonesia will be four times the current level.

In view of large growth potential in the Indonesia market, the company is looking construct more logistics centers on its own in main cities, according to Synnex president Evans Tu.

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