Cainiao Group, the logistics arm of Alibaba, has officially launched its first warehouse in Indonesia as part of a regional hub expansion plan.

Situated in GIIC Deltamas Cikarang, Bekasi Regency, east of Jakarta, the new Cainiao Cikarang Logistics Park is the third warehouse to be added to the company’s planned warehouse network of ‘chubs’ in Southeast Asia.

The project has a total land area of 320,000 square metres and encompasses six warehouses covering 170,000 square metres. Cainiao said these ‘cHubs’ are strategically located near key transportation nodes and manufacturing hubs like Indonesia to boost connectivity to global markets.

The Alibaba logistics unit is confident about the country’s strong potential and demand for warehousing capabilities as industry experts forecast rapid eCommerce growth and increasing customer expectations for fast and affordable deliveries.

“The vision is for Cainiao Cikarang Logistics Park to pave the way for future full chain capabilities to support manufacturers for their logistics and trading needs, such as fulfillment and sorting for local deliveries, import and export for B2B and B2C businesses, smart supply chain management, and logistics technology such as IoT, automation and warehouse management systems,” Cainiao noted.

Factoring in sustainability and local climate characteristics, the logistics park project also features skylights, incorporated into warehouse rooftops, as well as a natural ventilation system that will ensure a comfortable environment with energy savings in mind.

Cainiao shared the project received strong interest from local businesses prior to the official launch and achieved a 75 percent occupancy rate. Tenants include PT Senopati Fujitrans Logistic Services (Senfu), PT SGMW Indonesia (Wuling Indonesia), CJ Logistics, Klog, Haier and Lazada. Work is underway to expand the overseas warehouse network in Thailand and Vietnam.

“We have witnessed immense potential in Southeast Asian region and have been actively investing to expand our warehouse network in order to cater to the needs of local businesses. We are thrilled to finally announce this new warehouse, our first infrastructural investment in Indonesia and third in the region. Our strong network and expertise in logistics and supply chain capabilities will help our partners and customers in Indonesia accomplish more in less time and boost local and regional trade activities by streamlining workflows and processes across the value chain,” said Eric Xu, Vice President, Cainiao Group.