Cainiao Group, the logistics arm of Chinese conglomerate Alibaba Group Holding Limited, has on Thursday announced the launch of its first warehouse, Cainiao Cikarang Logistics Park, in Jakarta, Indonesia as part of its regional cHub expansion plan.

In addition to the Indonesia cHub, Cainiao said in a statement that its smart infrastructure business is currently expanding its overseas cHub warehouse network in countries such as Thailand and Vietnam.

According to the statement, the new Cainiao Cikarang Logistics Park is part of a regional warehouse network of Cainiao Hubs or cHubs in Southeast Asia, and is the third warehouse in the network.

Situated in GIIC Deltamas Cikarang, Bekasi Regency, east of Jakarta, the project has a total land area of 320,000 square meters and encompasses six warehouses spanning 170,000 square meters.

To integrate sustainability initiatives into the project, skylights were incorporated into the rooftops of all six warehouses which facilitate normal operations in the facility during daylight hours without the need for artificial lighting, thereby reducing energy consumption for tenants.

The project also factored in local climate characteristics and implemented a natural ventilation system within the warehouse.

Ventilation louvers are also installed on the roof to utilize air convection to dissipate indoor heat, ensuring a comfortable environment while also achieving energy saving objectives.

According to the statement, the warehouse is strategically located near factories to support the local manufacturing industry.

It said 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 business to business (B2B) and business to consumer (B2C) businesses, smart supply chain management, and logistics technology such as internet of things (IoT), automation and warehouse management systems (WMS).

Prior to the official launch, it said the project received strong interest from local businesses and achieved a 75 percent occupancy rate.

Its tenants include PT Senopati Fujitrans Logistic Services (Senfu), PT SGMW Indonesia (Wuling Indonesia), CJ Logistics, Klog, Haier and Lazada.

“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,” said Eric Xu, Vice President, Cainiao Group.

According to him, the firm’s strong network and expertise in logistics and supply chain capabilities will help its 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.

Cited the World Economic Forum, the statement said there are more than 62 million small and medium-sized enterprises (SMEs) in Indonesia.

Additionally, eCommerce revenue in Indonesia is expected to reach $44.81 billion in 2023, and grow at 10.44 percent annually to reach $66.66 billion in 2027.

This indicates strong potential and demand for reliable warehousing capabilities that can support the rapid eCommerce growth, and rising customer expectations for fast and affordable deliveries.

This news comes after Cainiao’s announcement back in late 2021 to roll out a regional warehouse network in Southeast Asia to support local B2B and B2C businesses.

Across the network in Southeast Asia, Cainiao cHubs are strategically located near key transportation nodes and manufacturing hubs to boost their physical connectivity to global markets, which safeguards the trade ecosystem for partners and customers and ensures a resilient supply chain.

In the future, Cainiao said its smart infrastructure business will continue to leverage its experience in global logistics infrastructure services to provide integrated logistics infrastructure networks and digital asset management services to global customers through the tripartite asset management operating system – ‘Cainiao Win’.

Founded in 2013, Cainiao is a smart logistics company that adopts a collaborative approach to logistics that aims to improve efficiency and customer experience for all players along the supply chain.

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