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Chinese e-commerce giant JD.com pulls the plug on Indonesia and Thailand sites in Southeast Asia logistics pivot

  • JD Central and JD.ID in Thailand and Indonesia, respectively, will cease operations in March, as parent JD.com refocuses on logistics and China growth
  • The internet retailer plans to grow its supply chain operations in the region after setbacks amid competition from the likes of Shopee and Lazada

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Employees check packages during an organised media tour at JD Logistics’ Asia No 1 logistics centre in Beijing on January 10, 2023. JD.com is closing its local platforms for Thailand and Indonesia to better focus on its supply chain and logistics strengths after setbacks from regional competition. Photo: Reuters
Ben Jiangin Beijing
Chinese e-commerce giant JD.com is pulling the plug on its Thailand and Indonesian platforms in a major setback for the company’s overseas expansion efforts, a move that comes as the country’s Big Tech firms rein in costs amid stalled growth in the domestic internet market.

The Beijing-based company’s joint ventures in the countries – JD Central in Thailand and JD.ID in Indonesia – posted the announcements to their websites on Monday. JD Central will cease operations on March 3, while JD.ID will stop on March 31. Both sites will stop accepting orders on February 15.

The statements confirm an earlier South China Morning Post report that JD was mulling ways to exit the markets to refocus on growth at home after years of expansion in Southeast Asia.

JD plans to pivot from running its own regional e-commerce platforms to building “a cross-border supply chain network with logistics and warehousing” to serve regional global customers, including those in Southeast Asia, a company representative said.

“We will continue to channel our resources toward building cross-border supply chain infrastructure and work with both local and global partners to deliver supply chain solutions around the world,” JD said in a statement. The company did not mention arrangements for its employees at the local branches.

JD.ID and JD Central did not immediately respond to requests for comment on Monday.

The Chinese tech giant launched JD.ID in 2015 through a tie-up with local investors, including Provident Capital, to tap into the then-burgeoning Indonesian e-commerce market. Two years later, the company launched JD Central with Thai property and shopping mall developer Central Group.

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