I still maintain that UPS is distraction .... UPS is a...

I still maintain that UPS is distraction .... UPS is a diversion. The block chain technology has no value if the number of customers on YOJ's platform does not reach critical mass. In the near to medium term, the bulk of the money will be made by helping solve the logistical problems described in the article below.

China tech giants bet on untangling logistics of Indonesian e-commerce

By Cindy Silviana and Ed Davies
JAKARTA, May 15 (Reuters) - In a warehouse on the outskirts
of Indonesia's capital, supervisors at e-commerce company Lazada
use bikes or electric scooters to zip around a floor the size of
four soccer fields, where up to 3,000 staff pack and dispatch
goods around the clock.
The warehouse is one of five that Lazada has opened across
Indonesia to cut costs and expand its reach in an archipelago
whose 17,000 islands are sprinkled across an area bigger than
the European Union.
Chinese tech firms, including Lazada's top investor, Alibaba
Group Holding , have poured at least $6 billion into
nearly every aspect of Indonesian e-commerce.
Lazada uses Alibaba's inventory management systems and has
tied up with ride-hailing companies, often using their
motorbikes to deliver goods in a country with creaking
infrastructure and traffic-clogged cities.
The payoff could be huge. It is a market forecast to grow
from about $7 billion last year to $63 billion by 2027,
according to Morgan Stanley.
"Indonesia, both in terms of the customers and behaviour, is
a very unique challenge and we need to adapt," Florian Holm,
co-chief executive at Lazada Indonesia, told Reuters.
Lazada and Tokopedia, in which Alibaba is also an investor,
dominate Indonesia in customer traffic, with more than 117
million monthly website visits each, according to data from
e-commerce aggregator iPrice.
Alibaba doubled its investment in loss-making Lazada to $4
billion in April, underscoring its global ambition to secure a
bigger share of the e-commerce market.
Between the investment and the rewards, however, lie
enormous complexities.
The World Bank has said logistical costs swallow up around a
quarter of Indonesia's gross domestic product, citing
bottlenecks in supply chains, long dwelling times in ports and
lengthy trade clearances.
Lazada has opened warehouses in places like Balikpapan, on
the coast of Borneo, to avoid hauling everything from Jakarta.
Holm said that had in some cases reduced shipping costs by 90
percent.
Competitive pressure is growing. Another Chinese heavyweight,
JD.com, arrived in Indonesia in 2016. And the U.S. giant Amazon,
which opened a warehouse in Singapore last year, may be prepared
to dip a toe into the Indonesian market soon.

CHINESE INFLUENCE
Indonesia's e-commerce sales are set to rise from 3 percent
of retail activity now to 19 percent by 2027, Morgan Stanley
estimates. The same report said there were 159 million
smartphones in Indonesia at the end of 2016, a number that could
rise to 275 million by 2021.
Indonesia's young population and room for improvement in
transportation and communications add to the prospects for
growth, the bank said.
That has attracted other Chinese companies. Tencent
Holdings, which owns regional e-commerce player SEA, has entered
the fray.
Tencent and JD.com have stakes in Indonesia's ride-hailing
firm Go-Jek, while JD.com has invested in online travel company
Traveloka.
But Usman Akhtar, a partner at Bain & Co in Jakarta, said
Indonesian companies such as Blibli, backed by a unit of the
Djarum group, remain a force.
"I would not characterize Indonesia as turning into a
replica of China's e-commerce market, at least not yet," said
Akhtar, referring to how JD.com and Alibaba dominate in China.
Kusumo Martanto, who heads Blibli, told Reuters the company
had seven warehouses in Indonesia with seven more planned, and
said it was important for local e-commerce companies to compete
against Chinese players.
Alibaba founder Jack Ma is on an Indonesian government
steering committee for e-commerce, advising on areas such as
tax, cyber security and human resources.
Indonesia's communications minister, Rudiantara, said there
was no conflict of interest in Ma's role, describing him as a
"guru" who could help sell the country's potential.
But some policies seem to be turning toward Ma's home turf.
Indonesia, which is trying to tackle a shortage of talent in
the digital sector, dropped sponsorships for 20 students to
study in places like Australia and the United States.
Instead, 10 students will go to India and 10 to China to
study this year "because the future of the digital economy is in
China and India," said the minister, who uses one name.

EYING AMAZON
Caterine, a 30-year-old housewife who lives west of Jakarta,
used to shop in conventional stores once a week, but after her
baby was born six months ago, she has been shopping online two
to three times a week for convenience.
"I prefer online shopping because it is quick. I can just
click and click and the goods will arrive," she said, adding she
mostly used Shopee and Tokopedia for goods such as diapers and
clothing.
Morgan Stanley said delivery times of all types across
Indonesia are down to about 3 days from 10 days, while
deliveries in big cities can take 24 hours or less.
While in urban areas delivery times have greatly improved,
other parts of Indonesia's e-commerce supply chain are still
inefficient, said Willson Cuaca, co-founder of East Ventures, a
tech investment fund.
"To send goods from point A to B, the logistics company
needs at least two modes of transport," he said, referring to
the complications of operating across so many islands.
Amazon, by contrast, prefers to control its own supply
chains from start to finish. But entering a market like
Indonesia could require it to revisit that strategy.
Amazon Singapore did not respond to a request for comment on
whether it had plans for Indonesia.
Much of the U.S. giant's international focus has been on
developing its business in India, even though some view its
entry into Singapore last year as a stepping stone for expansion
in the region.
"At this moment, I believe it is trying to test the market,
by selling products through third-party sellers," said Daniel
Tumiwa of the Indonesian e-commerce Association.
Zhang Li, who heads JD.com's Indonesian joint venture with
Provident Capital JD.ID, was not overly concerned about
competition from the likes of Amazon.
"E-commerce is a global and borderless business, so we have
to prepare and do continuous improvement to make our customers
happy," Zhang said.