JAKARTA: Kerry Logistics has formed Kerry-Puninar Logistics, a joint venture with the shareholders of PT Puninar Saranaraya (Puninar Logistics), one of Indonesia's largest logistics companies.

The joint venture will give Indonesian customers access to a combnation of supply chain solutions and a globally integrated network.

Kerry Logistics chairman George Yeo said: "The joint venture ...marks a significant phase of our business development in Indonesia. As an archipelago, Indonesia has high demand for quality inter-island logistics services, which translates into immense growth opportunities...we believe we are well-positioned to capture opportunities in the rapidly growing Indonesian logistics market."

Eddy Korompis, president director of Puninar Logistics added: "We look forward to the immense business opportunities that will emerge."

Indonesia is poised to benefit from the free flow of goods and services with the launch of the ASEAN Economic Community (AEC) this year. According to Frost & Sullivan, Indonesia's logistics industry currently accounts for about 3.6 percent of its national economy. Indonesia's transportation and logistics market was estimated to be worth US$144 million in 2014.

Puninar Logistics and its subsidiaries manage a logistics portfolio of 9.67 million square feet throughout several Indonesia cities, including Jakarta, Bandung, Jambi, Semarang and Balikpapan, plus a 700-strong truck fleet and 27 vessels. Key customers are in the automotive, fuel, oil, electronics and retail sectors. The company is part of the Triputra Group, an Indonesian conglomorate with a business portfolio covering mining, agribusiness, finance, trading, rental services, logistics and manufacturing.