JD.ID is reported to be leaving at the end of January 2023, the logistics business will close first

JD.ID, the company E-commerce JD.com and Provident Capital joint venture, reportedly will close operations by the end of this month. All JD.ID operational businesses will be closed one by one, one of which is the JDL Express Indonesia logistics business which will officially close as of January 22, 2023.

This information is obtained from reliable sources DailySocial.id. He said, "JD.id will also be finished at the end of this month [January 2023]."

When confirmed, JD.ID Head of Corporate Communications & Public Affairs Setya Yudha Indraswara was not willing to give his statement. "Regarding this, I'm sorry, right now I can't give it statement whatever," he said.

If this news is true, it also confirms previous reports which stated JD.com's plans for exit from Indonesia and Thailand in the first quarter of 2023. Tight business competition with players E-commerce others, was one of the reasons behind JD.com's departure.

As a company e-commerce, JD.ID is not a dominant player in Indonesia. Quoting from iPrice data, JD.id's highest position in sixth place occurred in the fourth quarter of 2018. At that time, the number of site visits per month reached almost 17 million times. Then it continued to decline until as of the second quarter of 2022, visits dropped to 2,3 million times, placing its position in 10th place.

Meanwhile, quoting from SimilarWeb, JD.ID site visits dropped to 1,6 million times as of December 2022. Placing JD.ID in 15th place among sites E-commerce the most visited in Indonesia.

Signs that companies are starting to struggle have actually been seen through the wave of layoffs that took place twice last year. The first time this happened was in June 2022 when dozens of employees were laid off.

Then, on early December 2022, JD.id announced layoffs of 30% of employees or around 200 people. The company argued that this decision was taken because it is currently facing very rapid business changes. Therefore, companies need to take adaptation steps.

"One of the steps taken by management is to streamline so that the company can continue to adapt to changes," said Setya.

JDL Express has officially closed

Not only that, our source also confirmed the truth of the information regarding the closure of JDL Express Indonesia. "Yes [it's really closed]," he said. This information has previously been conveyed via JDL Express official website.

"The JDL Express Indonesia service will be disabled as of January 22 2023. If there are problems with sending your package, please contact our Customer Experience," wrote the announcement.

There has been no further information provided by the company regarding the fate of its assets and employees. However, our source said that there are no new investors who intend to take over all of JDL Express' assets. "There are no new investors yet," he added.

JDL Express, previously known as J-Express or JX Indonesia, has been established since 2015. Echo Hong is the last CEO to serve at the company, officially appointed on October 5 2022. Hong is one of the youngest leaders at JD Worldwide, JD.com's import-only e-commerce platform, and has 11 years of experience in logistics. He has joined JD.ID since 2012.

Regarding JDL Express' achievements, it was stated that the company has 11 warehouses, more than 250 drop points, and more than 3.000 couriers. The product offerings range from regular delivery services, delivery with on-site payment methods (Cash on Delivery), payment method using a card on site (Card Swipe on Delivery), tailor-made, fulfillment, cargo, last mileand cross border last mile.