29 May 2021
JAKARTA, investor.id – PT Transkon Jaya Tbk (TRJA) is targeting revenue growth by the end of 2021 through various actions. One of these is the company’s plan to add several new service points in the Internet Service Provider (ISP) market in Sulawesi.
Transkon Jaya’s Corporate Secretary, Alexander Syauta, explained that the company had already established three ISP service points in Sulawesi and plans to expand further by adding up to four new points. Additionally, the company will introduce new types of vehicles to its vehicle rental unit, ranging from buses to electric vehicles.
The company is also diversifying its customer base from plantation customers to gold mining as part of risk mitigation. “We aim for the ISP segment to contribute around 10% of total revenue by the end of 2021,” said Alexander during a visit to BeritaSatu Media Holdings on Friday (28/5).
He revealed that the costs incurred by the company for this service expansion are relatively small because it only involves adding bandwidth and infrastructure. In the rental business segment, Transkon has added new types of vehicles, including buses and trucks.
In the first phase, the company provided these new vehicles in the first half of 2021, renting out two buses and two trucks to an infrastructure company. The cost of purchasing the four new vehicles was IDR 3.2 billion.
“Our other strategy to expand the rental market is by diversifying into other industries such as mineral mining, so we are not dependent on coal mining,” he added.
This year, Transkon has allocated a capital expenditure (capex) of IDR 100 billion. This budget will be used to purchase new vehicles for the previously mentioned expansion. Additionally, capex will be allocated for the purchase of spare parts and complementary accessories suitable for the type of product and the standard mining location. Currently, the company has around 2,000 vehicles, and there is a policy to add approximately 40 vehicles each month to replace old, unusable vehicles.
On another note, the company is reportedly in intensive talks with one of the electric vehicle sole agents (ATPM) along with clients of the company. If this plan is completed, the unit will become the first commercial vehicle in Kalimantan.
With these various plans, the company is optimistic about achieving an increase in revenue and profit of up to 10% this year. This optimism is supported by the Indonesian government’s plan to transform East Kalimantan into the capital city, believed to enhance business prospects along with investment facilitation.
Head of Investor Relations at Transkon Jaya, Geraldine Simanjuntak, added that this performance target would be supported by a strategy to select financing that can benefit Transkon Jaya, such as finance lease financing that has a significant impact on reducing financial and tax burdens. “The increase in revenue will also come from several new customers and new projects that the company has acquired after being listed on the Indonesia Stock Exchange (IDX),” she said.