Hary Haryanto – Country Manager, BDP International, Indonesia
Hary Haryanto explains the unique characteristics of Indonesia from a logistics perspective and highlights how the combined efforts of his team and the expertise BDP International offers have enabled him to significantly increase their revenue in only three years. He further discusses Indonesia’s infrastructure status and emphasizes the positive developments brought forward by the Indonesian government.
You became country manager in Indonesia for BDP International three years ago. What have been your key achievements since then?
Since I assumed the position of Country Manager for BDP International in Indonesia, my focus was to enhance our footprint in Indonesia. We experienced significant growth since my appointment and the rapid growth has enabled us to open up more branches across Indonesia. As of today, we are represented through three branch offices in Balikpapan, Medan and Surabaya, as well as our head office in Jakarta. I am particularly proud of this achievement as this growth has allowed us to provide even more employment opportunities to Indonesians and expand our team by 50 new employees to a total of 140.
The key to this tremendous success has been the focus on operational excellence. My team and I are constantly focussing on developing ourselves and assessing how we can deliver the best solutions held to the highest quality standards for our clients. Through combined efforts we have become even more dominant in the Indonesian market.
How significant is the oil and gas industry for BDP International in Indonesia?
The oil and gas industry occupies 25 to 30 percent of our business— a significant portion of our total revenue in Indonesia. This sector is a focal area for BDP International Indonesia in the future, together with the chemical industry which is still a dominant part of our business. We are well-positioned to capture opportunities for logistical services in the downstream sector, with capabilities for project-based logistics in the upstream sector.
BPD International is one of the largest and most renowned companies of its sector with affiliates all around the world. What is the role Indonesia is expected to play for BDP’s international network?
Indonesia is the fourth largest in country in the world by population, one of the largest economies in the world and the largest in the South East Asian region, offering unique opportunities for business growth. Strong domestic consumption translates to demand for domestic goods distribution and inter-island transportation, a situation that is unique to our geographical landscape. The growth in Indonesia aligns with the role this country is expected to play in the corporate strategy, which identifies Indonesia as a major economy and expects it to be the growth country for BDP International in this region.
It has to be acknowledged that Indonesia is already part of the ASEAN Economic Community (AEC) since this year and has been a member of other international economic entities such as APEC, G20 and WTO, which enable Indonesia to grow in the international context. This opportunity has to be better utilized to grow within the region; the TPP is the second step! It will enable Indonesia to enhance its global significance. I believe Indonesia has the potential to seize these opportunities to make more impact on a global scale.
However promising the advantages seem to be, the disadvantages have to be considered as well. Joining the TPP will open the door for many more businesses and it has to be precisely evaluated if the Indonesian economy is ready to compete domestically with global operations in every sector. We will see what the government decides, for us the advantages outweigh the disadvantages and would provide even more business opportunities.
Indonesia is the largest archipelago in the world with over 17500 islands. What are the specific challenges for a logistics company in this environment?
The unique landscape of Indonesia as the largest archipelago in the world is its largest logistical challenge. Due to its separation into multiple islands, an extensive port infrastructure is mandatory. The major ports are already of international standards, however one can’t assume that every port across Indonesia is well-developed. Additionally, we serve clients all across Indonesia where there are varying levels of infrastructure development and local customs regulations. As a company, we engage extensively with local partners and utilize the synergy created to best serve our clients. Through this engagement, we have created a unique network of local partners to allow us to serve our customers to the highest standards across the whole country. We ensure consistent quality for our clients via detailed assessment of all of our partners’ qualifications which must be of international standards.
Additionally, we emphasize strengthening our team thoroughly as human resources is our strongest asset. We have well-qualified and experienced employees with longstanding experiences in the various regions of Indonesia. Our team has connections to various agents, shipping lines and insights to specific local conditions which add value to our operations. The know-how of our team is the strongest competitive advantage we have.
Is finding the right talent a challenge in Indonesia?
We take human resources seriously and thus it is always a challenge to find suitable team members who will enable us to form teams of synergy to bring first class service to our customers. Indonesia does offer a sufficient talent pool to source from—I am an Indonesian and so are my employees.
Indonesia’s education system has improved tremendously over the past decades and the local workforce is equal to those overseas. Local staff also has in-depth knowledge of the market and culture.
Imports need special infrastructure, how do you assess the infrastructure needed for (rising) imports into Indonesia?
Although the infrastructure needed surrounding our ports is still developing, it has improved significantly in recent years. With Jakarta’s port as role model, the government is pushing to establish equally excellent infrastructure at all Indonesian ports. The government realized the significance of imports to supply the rising demand of its population and have achieved major improvements, including simplifications of its regulations. The infrastructure needed for smooth imports is a key indicator of economic development, and our government is addressing this challenge accordingly.
The current focus is to develop maritime infrastructure which, given the geographic conditions as the largest archipelago in the world, the right strategy to ease exports and imports and will directly support business growth for companies in Indonesia.
In a nutshell: how do you differentiate yourself from your competition?
BDP International is one of the most renowned logistic companies in the world with established standards held to highest quality measurements. Among many leading services, we also offer ‘BDP-Smart’, a highly configurable platform delivering real-time data on shipment tracking and updates to our clients via a single web portal.
On a domestic level we offer unmatched local expertise and experience through our highly professional team which is well-connected in Indonesia and equipped with full understanding of regulations and the scopes of the various government departments, thus matching Indonesia’s framework demands flawlessly.
BDP International in Indonesia is also a licensed customs house brokerage that handles import and export customs clearance in-house, unlike outsourcing done by competitors. We have 12 certified customs experts who advise on custom regulations, ensuring absolute compliance for all cargo. Compliance is a key element of our operational excellence, and one of the primary principles of BDP International.
When we come back in three years, where will you have led BDP International in Indonesia?
I would like BDP International in Indonesia to be the dominant player in the market. The logistics segment is one of the largest in Indonesia and although we have grown significantly, there is still potential to seize and opportunities to realize to fully develop BDP International in Indonesia.