Transportation and logistics issuers: Strategies to accelerate performance
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Emiten transportasi dan logistik: Strategi kebut kinerja
5 August 2024
By Rizqi Rajendra
Bisnis, Jakarta – Several transportation and logistics companies are implementing growth strategies in the second half of 2024, following increased net profits in the first half of the year.
PT Adhi Sarana Armada Tbk (ASSA), a transportation and logistics company under the TP Rachmat conglomerate, expanded its vehicle fleet in the first half of 2024, supported by its substantial capital expenditure (capex) allocation for the year.
ASSA Corporate Secretary Jerry Fandy stated that the company was allocating a capital expenditure of approximately Rp1.3 trillion to Rp1.5 trillion this year, primarily for revitalising and purchasing vehicles for its rental business.
“As of the first half of 2024, ASSA has spent Rp577.6 billion on its rental business,” Jerry told Bisnis on Friday (2/8).
ASSA currently operates a fleet of 30,000 vehicles. The growth of its fleet aligns with the rising demand in the business-to-business (B2B) sector.
“The company's rental business expanded alongside the state's consistent GDP growth, largely due to its predominantly B2B customer base,” he stated.
In the first half of 2024, ASSA's net profit soared by 84.58% year-on-year (YoY) to Rp128.42 billion. However, the company's revenue experienced a slight decline of 0.87%, dropping to Rp2.36 trillion.
The taxi company PT Blue Bird Tbk (BIRD), owned by the Djokosoetono family, also showed a positive performance in the first half of 2024, with increases in both net profit and revenue.
BIRD's net profit saw a modest rise of 1.37%, reaching Rp263.01 billion. In contrast, the company's revenue grew significantly by 11.26%, totalling Rp2.32 trillion.
Blue Bird President Director Adrianto Djokosoetono expressed optimism about the company's financial outlook, citing the growth of the transportation sector in Indonesia.
Andre, as he is commonly known, stated that Blue Bird aims for double-digit performance growth each year. He revealed that the company's strategy focuses on sustainably maintaining its relevance to consumer demands.
BIRD is also developing a strategy to increase revenue from its non-taxi business segments. Andre mentioned that the company's market share in areas like car rentals, buses, travel, and logistics remains relatively small.
“As of the first half of 2024, taxis contributed 73% of the company's revenue, while non-taxi businesses accounted for the remaining 27%. Going forward, we will primarily focus on expanding our non-taxi business segments to drive growth,” he stated.
One of the company's strategies is to expand its Cititrans travel service by adding new routes. Currently, Cititrans operates in several cities, including Jakarta, Bandung, Solo, Surabaya, Semarang, and Malang.
To support the expansion plan, BIRD has prepared a capex of Rp2.5 trillion for this year.
He stated that the company plans to purchase up to 7,000 vehicles to revitalize and expand its taxi, non-taxi, and electric vehicle fleets in order to meet growing mobility demands.
Meanwhile, PT WEHA Transportasi Indonesia Tbk (WEHA), also known as White Horse Group, has announced a strategy to expand its fleet in order to enhance the company's performance.
WEHA's Finance & Accounting Director, Edgar Surjadi, stated that the company has allocated a capital expenditure of Rp60 billion this year for the purchase of new vehicles.
In the first half of 2024, WEHA reported revenue of Rp143.8 billion, marking a 16.77% year-on-year increase. The company's net profit rose by 2.72%, reaching Rp14.23 billion.
“Three of the company's business lines experienced growth: White Horse's bus charters, DayTrans' intercity shuttle and logistics services, and Explorer.ID's open trips,” Edgar added.
