Making Indonesia 4.0

Amatil X invests in Indonesian logistics start-up Kargo Technologies to support logistics transformation in Indonesia.

Coca-Cola Amatil Indonesia (Amatil Indonesia) today announced its corporate venture capital platform Amatil X had completed a strategic investment in Indonesian logistics startup, Kargo Technologies as part of the business’ broader strategy to digitize its operations.

Entering the market in 1992, Amatil Indonesia has invested heavily in state-of-the-art systems and technology to support its nation-wide operations and partnered with Indonesia’s leading technology providers. 

Since 2015, Amatil Indonesia has been on its digital transformation journey, focused on driving the digital ecosystem in Indonesia in support of Making Indonesia 4.0. Amatil Indonesia not only invests in technology but also focuses on developing its people and embedding a disruptive and breakthrough problem-solving culture.

Kargo Technologies is a freight logistics startup that integrates shippers and logistics providers onto a single marketplace. It aims to digitize Indonesia’s freight logistics industry by leveraging technology to drive efficiency, transparency and accountability. Shippers, transporters and truckers connect, transact and track shipments in real time on Kargo’s platform, which they access via the website and mobile app. Kargo last completed a USD 7.6M funding round in 2019.

In the Making Indonesia 4.0 era, Kargo Technologies will enable Coca-Cola Amatil Indonesia to optimise its logistics capability by increasing productivity and efficiency on some of its key trucking routes. 

Coca-Cola Amatil Indonesia President Director Kadir Gunduz said, “We are the power behind Indonesia’s favourite beverage brands. Our investment in Kargo Technologies supports our ambition to be a leading player in the digital ecosystem here in Indonesia.

“Technology plays a crucial role in our transformation journey, and especially so in the last decade. In achieving our commitment and targets, we invested in state-of-the-art systems and technology, supporting our nation-wide operations. We also focus to develop our people and embedding disruptive and breakthrough problem-solving culture, for example through introducing Artificial Intelligence and Virtual Reality experience. We constantly ensure that our teams, both on field and in the back office, are equipped with the best tools.

“Kargo Technologies is our first startup investment in Indonesia and we are excited to be partnering with them to improve our overall logistics capability. Kargo is fulfilling two key land transportation routes for us and we expect this to increase over time as Kargo’s network expands.”

“The new partnership will help us to extend our competitive advantage by improving the way we do business or the way we service our customers.

“Coca-Cola Amatil Indonesia is very excited to create our future of many possibilities together with valuable partnerships. We hope that through this collaboration, we can contribute to the nation’s workforce readiness towards the Industry 4.0 and overall economic growth of Indonesia.”

Tiger Fang, CEO of Kargo Technologies said tech-enabled logistics is a proven trend in other markets, including India, China and the USA. “We are excited to work with Coca-Cola Amatil to further digitise and optimise their supply chain in Indonesia.”

“In Indonesia, road logistics amount to 16% of GDP with approximately $40B spent on trucking each year. The industry is highly fragmented, with seven million trucks operating across 17,000 islands. 90% of trucking companies have 100 trucks or less and 75% have 20 trucks or less. Kargo is building the digital infrastructure to bring efficiency to Indonesia’s logistics system.

“Kargo connects businesses and their shipping needs with trucking companies that have vehicles with cargo space available nearby. Importantly, Kargo can source loads the backhaul which means trucks are returning with fewer empty loads, allowing them to maximise revenue and better distribute costs,” Mr Fang said.