PT Transkon Jaya Tbk (TRJA) is set to allocate IDR 100 billion for capital expenditure (capex) this year. The funds will be utilized for the purchase of new vehicles, specifically light trucks and light buses, which will be added to the company’s rental fleet.
Rex Alexander Joseph Syauta, Corporate Secretary of Transkon Jaya, stated that in addition to acquiring new vehicles, the capex will also cover the purchase of spare parts and accessories compatible with the types of products and the standards of mining locations.
The company currently owns approximately 2,000 vehicles, and it follows a policy of adding around 40 new units each month while replacing old vehicles that are no longer suitable for use. This addition of vehicles not only helps in fleet expansion but also contributes to attracting new customers. Transkon Jaya is collaborating with new customers for a project operating on Halmahera Island, North Maluku Province, starting from February 2021.
Transkon Jaya is continuously monitoring the potential increase in demand for rental vehicles and is planning expansion strategies for 2021, covering geographical, industrial, and vehicle-type aspects.
In terms of financial performance, Transkon Jaya is optimistic about achieving a profit increase of up to 20% this year. To achieve this target, the company has devised several strategies, including increasing market penetration for Internet Service Provider (ISP) services and acquiring new clients.
Lexy Roland Rompas, President Director of Transkon Jaya, outlined plans to expand marketing exposure for the ISP business line. The focus will be on tenders for internet services in the South Sulawesi region, with expectations for continuous growth in this segment. Despite rental income being the most significant contributor, accounting for up to 95%, the company is looking to explore growth opportunities in the ISP segment.
In the vehicle rental segment, Transkon Jaya is actively negotiating with various suppliers to obtain procurement discounts for goods and services. Additionally, the company has visited a potential client, aiming to secure them as a new customer in early 2021.
This positive outlook aligns with the company’s financial performance until the third quarter of 2020, recording a profit of IDR 34.38 billion, marking a growth of 9.56% compared to the same period in the previous year, which stood at IDR 31.09 billion. The growth is attributed to several new projects received by the company in the first semester of 2020, contributing to revenue in subsequent quarters.
In the third quarter of 2020, the company’s total revenue reached IDR 306.67 billion, reflecting a 1.62% increase from the previous period, which recorded IDR 301.77 billion. The segments of vehicle rental and ISP were the primary contributors to this revenue, amounting to IDR 297.32 billion and IDR 9.35 billion, respectively.
Recently, Transkon Jaya secured a 1% reduction in interest rates for all Mitsubishi products financed by Dipo Star Finance, the company’s largest creditor. This interest rate reduction is considered significant, given that interest rates are a determining factor in installment rates, thereby influencing vehicle rental prices. The rate reduction has been in effect since October 14, 2020.