Beyond borders: How FedEx is powering Indonesia's next wave of MSME globalisation

In Indonesia’s fast-moving digital economy, FedEx is quietly powering the country’s next chapter of growth. As millions of local businesses embrace cross-border trade, the global logistics leader is doing more than just delivering packages - it’s bridging Indonesia to the world’s economies.

“For us here in Indonesia, a phrase that we talk about a lot within our team is that we’re the growth enablers,” said Garrick Thompson (pictured), managing director of FedEx Indonesia, in an interview with MARKETING-INTERACTIVE as the logistics firm celebrates its 40th anniversary. “We really see our role as someone who comes in and helps connect Indonesian customers with the world.”

That means zeroing in on MSMEs - many of whom have already thrived on local marketplaces such as Tokopedia and Shopee - and helping them think beyond national borders. “There’s no reason why they can’t do the same internationally,” said Thompson. It’s a bold ambition, but one underpinned by strategic infrastructure moves, local partnerships, and a growing digital toolbox.

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Dedicated flights, deeper roots

At the heart of FedEx’s approach is its investment in dedicated capacity for Indonesia. In late 2024, the company launched a direct connection between its Asia-Pacific hub in Guangzhou and Soekarno-Hatta International Airport in Jakarta. This is particularly significant given that China is Indonesia’s largest inbound trade partner.

This aircraft, capable of carrying up to 52 tonnes, flies into Indonesia five days a week - an exclusive advantage in the express shipping space. “Because we own and operate the aircraft, we control the manifest,” said Thompson. “We’re able to accelerate the processing of the customs clearance. We’re not relying on third-party partners."

Beyond that, the company has cemented deeper roots in the country. In the last three years, it opened new gateways in Batam and Denpasar and upgraded its Jakarta facility - all designed to support both today’s shipping volumes and future growth. And in terms of last-mile operations, FedEx has doubled down on collaboration with local partner RPX, marrying global infrastructure with domestic expertise.

In 2016, FedEx acquired TNT Express, which already had a strong presence in Indonesia. The integration lays the groundwork for an expanded network beyond Jakarta into cities such as Batam, Balikpapan, Medan, and Denpasar.

Operating across more than 220 countries and territories with a fleet of nearly 700 aircraft, FedEx moves everything from time-sensitive documents to heavyweight freight. “You only need to speak with one salesperson, and they’ll help you find the right solution to fit your needs,” Thompson emphasised.

For Indonesian customers, FedEx offers a range of tailored solutions to meet varying business needs. Those prioritising speed can opt for its International Priority service, while cost-conscious businesses might find better value in the International Economy option. Beyond off-the-shelf offerings, FedEx also provides special service solutions - bespoke logistics support designed around the specific requirements of each customer.

It’s this combination of flexibility and personalisation that the company sees as a key differentiator, especially in helping Indonesian businesses scale and succeed in global markets.

Bridging Indonesia’s fragmented terrain

Operating across 17,000 islands is no small feat, but Thompson sees complexity as opportunity. “We serve 99% of this country,” he said. “We have shipments that go right out to Papua, up to Aceh, up to North Sulawesi - right across the breadth of the country.”

FedEx adapts its methods to each region - using trucks, ferries, boats, and local partnerships depending on the terrain and urgency. “We’re learning how things operate on the ground here and finding good partners to work with across different aspects of the business.”

Having previously worked in the Philippines, Thompson noted a key difference in how economic activity is distributed across both markets. While Jakarta remains Indonesia’s core economic hub, he pointed out that other regions - such as Surabaya, Semarang, Batam, Balikpapan, and Denpasar - also play vital roles across sectors.

In contrast, the Philippines’ international freight activity is more geographically concentrated. Most trade flows are centred around Northern and Central Luzon, with some additional movement and limited volumes elsewhere. For companies operating regionally, this means that Indonesia often requires broader coverage, while the Philippines allows for a more focused operational approach.

Market differentiation also extends to consumer behaviour. The Philippine market tends to mirror trends in the US and other Western economies, allowing FedEx to adapt strategies that have worked in those markets. In contrast, Indonesian consumers have more distinct needs and behaviours, requiring a more localised approach.

Despite being one of the world’s most recognisable logistics brands, FedEx recognises the need to adapt its model to resonate with the Indonesian market. Part of that adaptation involves playing an educational role in the ecosystem. The company runs webinars, offers regulatory consultations, and helps MSMEs navigate customs - an area where lack of clarity often hampers cross-border potential.

“We see a big part of our role as an educator in that space to help demystify some of the perceived complexities and make it an easier process for them,” said Thompson.

The company has adopted what it calls a glocal strategy - blending FedEx’s global capabilities with local insight. Through its FedEx Cares programme, it works with NGOs to support entrepreneurial development in underserved regions, such as in Kalimantan, where business communities are being introduced to global trade basics.

“We’ve supported them to help educate them around what it takes to build a business,” said Thompson. “They’ve got the expertise and knowledge on farming but maybe not so much on how to translate that raw product into something they can take to the world.”

The long-term hope is that this grassroots engagement will pay off both in customer development and brand awareness.

Digital growth and the 8% GDP vision

FedEx is also aligning itself with rising consumer expectations around transparency, sustainability, and digital efficiency. The company has committed to carbon neutrality by 2040 and is actively enrolling Indonesian customers in its FedEx Sustainability Insights (FSI) programme to track and manage shipment emissions - an offering that has gained early traction in Bali.

Beyond sustainability, the next frontier is data. “Equally as important as the physical network is that digital network and the data that we have,” Thompson noted. “We’re able to then transform that information to support our customers to help them become more efficient, more effective, more profitable.”

One such tool is FedEx Surround, which gives customers deep visibility into shipping trends and operational insights beyond single-package tracking. “It allows them to start looking at the trends and the data that are seeing at their fingertips,” he said. This level of granularity could prove decisive as Indonesian MSMEs scale globally and need to optimise every part of their supply chain.

Indonesian President Prabowo Subianto has outlined an ambitious goal of achieving 8% annual GDP growth - a target that FedEx believes will require robust international trade. “My personal opinion is that that won’t grow alone from the domestic economy,” said Thompson. “There has to be international trade mixed in… and that’s where I strongly believe FedEx can play a very, very critical role.”

Thompson was among a group of top business leaders of US firms who met with President Prabowo in late 2024. He noted that FedEx is in a phase of active growth in Indonesia, aligning its strategy and infrastructure with the country’s economic vision. The company’s focus on MSMEs isn’t just about logistics; it’s about rewriting the narrative of Indonesian business.

“We want to help the government ensure that they’ve got that infrastructure in place to support growth, not just in Jakarta, but through the regions, ensure that we can move goods freely and efficiently to enable all citizens of Indonesia to enjoy some of the opportunities that people in Jakarta receive,” Thompson added.

By breaking down the barriers to cross-border shipping - from infrastructure to education to regulation - FedEx is betting that more Indonesian entrepreneurs will look outward, not just inward. In a nation brimming with creativity and commerce, the opportunity is here. What remains is to deliver it - one export at a time.

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