Preventing Foreign Parties to Take Over Local Portion
www.wartaekonomi.com, 2003-03-04
Competition within the forwarding business tightens with the increasing presence of multinational companies. Local companies, whose business underwent declines due to the condition, suggested to implementation of a law that forbids foreign forwarders to dominate the business from upstream to downstream. As one of the largest forwarding company in Indonesia, PT Monang Sianipar Abadi (MSA) Kargo has its own way to deal with increasing competition. Accoding to MSA, although Indonesian companies can not compete with multinational companies from factors such as capital, network, service system and human resource capability, these companies are unfamiliar with Indonesian territories. Hence, these companies still need local companies for their partners. MSA itself has established an exclusive co-operation with multinational forwarded McGregor Swire Air Service (MSAS) since 1985. In 2000, MSA also established a partnership with EXEL, the company that took over MSAS. In 2003, MSA and EXEL formed joint venture, PT EXEL Indonesia. In addition, MSA also partners with Japan-based company, Hangkin.