Amidst stiffer competition in logistics sector, state run postal company PT Pos Indonesia (Posindo) said it will expand express package service to 40 cities in Indonesia.

President Director Hana Suryana said that at the moment mail and express services do not reach all cities in Indonesia, although this business has the potential to grow. Posindo is in a better position to compete with other companies because it has 2,500 branch offi ces throughout the country.

Suryana also said Posindo targets a 30 percent increase of its fi nance business this year, lower than last year when it reported an increase of 87 percent. The main contributing factor to high growth in 2006 was the government’s Direct Cash Programme, which was distributed by Posindo to the less privileged people.

Suryana said that Posindo’s fi nancial service tends to increase each year. Last year, this sector contributed 23 percent to the company’s total revenue. The company’s fi nancial services handle the distribution of direct cash, telephone and electricity bills, tax bills, credit card bills, and other online payments. – Siktus Harson