State-owned postal service companyPT Pos Indonesia (Posindo) has signedan agreement with Gading Sari AviationService Malaysia Sdn. Bhd., through itsIndonesian subsidiary PT Gading SariIndonesia (GSI) for the redesigningand expansion of its logistics division.

The CEO of PT. Pos Indonesia, HanaSuryana said the cooperation is part ofPosindo’s plan for an initial public offeringwhich is scheduled for 2010.

"As preparation for the IPO we needto co-operate with strategic partnerssuch as Gading Sari. In the initial phaseGSI will help us with land, air, and seatransportation services," Suryana said.

GSI will invest up to $70 million to help modernising the warehouse,logistics and communications systemsof Posindo.

"The revenue from logistics unitgrew significantly last year to Rp65million from Rp30 billion in 2005,"Suryana said, adding that it targets topocket Rp320 billion in 2007 in partnershipwith Gading Sari.

Chief Executive Officer of PT Gading Sari Indonesia Taufik Mochtar said: "PT Pos Indonesia’s over 3,000 outlets nationwide is an advantage and will bring optimism in the cooperation."

After expanding logistics in Indonesia,Gading Sari Aviation ServicesMalaysia Sdn Bhd will also start co-operationwith Vietnam and China. BothPosindo and Gading Sari target to enterthe logistics industry in ASEAN.

"If the collaborative project goeswell, it is possible that GSI will invest anadditional $500 million in the years tocome," Mochtar said.

 – Siktus Harson