J&T’s shipping war gets messy

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In focus

For this edition, we cover:

• Why J&T’s price war is so brutal
• Everyone wants to target Tier 2 and 3 cities – few have found success

Hello reader,

The US and China have agreed to a 90-day tariff reduction, a rare pause in their trade war. For businesses and shoppers alike, shipping costs are always on top of mind, so any tariff relief is a welcome break.

Which brings us to today’s Big Story.

In Indonesia – a vast archipelago – consumers often have to check the store’s location first to ensure delivery fees wouldn’t break our purses.

J&T Express understands this, and thanks to its extensive capital backing, it has managed to offer low shipping costs in Indonesia – and across Southeast Asia. The result is clear: it has become the most dominant 3PL player in the region.

In 2024, J&T said that it was the top player in Southeast Asia for five consecutive years with a market share of 28.6%.

However, this low-price strategy has been called unhealthy for the industry. Other players feel threatened, and couriers end up bearing the consequences.

In this story, I break down J&T’s pricing strategy and how a price war could threaten the future of the logistics ecosystem. Will the government step in to regulate this pricing battle?

Meanwhile, Tier 2 and 3 cities in Indonesia are still a puzzle startups haven’t cracked. The archipelago’s fragmented geography means that the Jakarta playbook doesn’t work. My colleague Glenn Kaonang unpacks what it takes to win outside the capital, and why many have failed trying.

Jofie Yordan, journalist

The Big Story

J&T’s race to the bottom in SEA logistics sparks backlash

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