JAKARTA (TheInsiderStories) – Singapore’s vCargo Cloud Pte. Ltd (VCC) has announced that it will acquire 60 percent stake in Indonesian integrated logistics player PT Gatotkaca Trans Systemindo (GTS), to expand its global network. The e-trade provider will pay out US$1.40 million for the deals.
In an official statement released on Wednesday (18/9) VCC said it will pay $850,000 for 60 percent of GTS’s share, as well as extend a $545,000 loan to the company. VCC became a portfolio of tech firm DeClout after the SGX-listed company acquired a 30 per cent interest in it in 2015.
Jakarta-based GTS provides trucking as well as freight and forwarding services. VCC offers e-trade and e-freight solutions to governments and companies worldwide through its platform, VCC CamelONE, which enables digitalized data exchange of cargo and financial information for stakeholders in trade, logistics and supply chain sectors, simplifying cross-border trade.
This latest acquisition marks the third point of presence that VCC has established since the start of the year. In the past recent weeks, VCC has announced to set up its CamelONE platform for trade facilitation with government authorities in Djibouti, Africa and Cambodia.
Through its investment in GTS, VCC intends to accelerate automation of customs declaration in Indonesia, which has a population of 260 million and recorded $300 billion worth of trade in 2017.
The CamelONE deployment in Indonesia will link to the existing CamelONE network, allowing stakeholders to seamlessly transmit data across the 14 countries through its unified platform which connects governments, businesses and consumers.
“The GTS acquisition is significant on two fronts. GTS’ mature operations allow VCC to jumpstart on our foothold in Indonesia, a key ASEAN market which is ranked Singapore’s fourth largest trading partner,” said VCC CEO Desmond Tay.
Its predicted, the domestic freight and logistics market is expected to reach $383 billion by 2023. The logistics sector of Indonesia unregulated untill 2007, since the time protectionist measures were applied. Given the importance of maritime trade, there has been a general trend to keep the sector closed to foreign players over the past decade.
Under President Joko Widodo’s administration, the development of maritime connectivity has become a main element of the national long-term development plan. He once said Indonesia has to seriously start exploiting maritime resources, which he believes are the future of the country’s economy.