The 3rd PPM Business Case Competition – JNE : Toward a World Class Logistic Company

The 3^rd PPM Business Case Competition in cooperation with PT Tiki Jalur Nugraha Ekakurir (JNE) presented a management case based on the existing condition of JNE market. As we know, JNE is one Indonesian company that has grown very rapidly and become one of market leaders in the express delivery industry.

PT Tiki Jalur Nugraha Ekakurir was established on 26 November 1990 by Soeprapto Suparno. This company was initiated as a division of PT Citra van Titipan Kilat (TiKi) operating in the field of international courier service.

With eight people and Rp 100 millions capital, JNE began their business activities focusing on handling custom clearance, import of goods, documents and their deliveries from abroad to Indonesia.

In 1991, JNE expanded its international network by joining the association of Asian courier companies (ACCA) based in Hongkong, later giving JNE an opportunity to expand its delivery area to all over the world.

Due to the competition in the domestic market, JNE also focused on expanding its domestic network. With TiKi’s domestic network and name, JNE gained an advantage in domestic market competition.  JNE also expanded its scope of services with logistics and distribution.

For years later both TiKi and JNE developed and became two companies with different directions. Therefore, the two companies became competitors to each other. Finally, JNT became a separate company with its own management. JNE created its own logo and differentiated itself from TiKi.

Entering  its 21st  anniversary, the courier company JNE is ready to enter logistic market. In its early period of establishment, JNE ran imported goods develivery business in 1990. In 1996, it entered domestic business. Currently its income growth has reached 25%-30% since 2009 period. Current JNE’s service products are among others money transfer service, food delivery service (Pesanan Oleh-Oleh Nusantara, PESONA), land delivery service (trucking service), moving service, air & sea cargo services, escort service, and custom clearance.