Transkon Jaya Prepares Service Expansion


28 May 2021


Dilansir Oleh


Jakarta, – PT Transkon Jaya Tbk (TRJA) plans an expansion by adding several new service points in the Internet Service Provider (ISP) market in Sulawesi. Additionally, the company will introduce new types of vehicles to its vehicle rental unit, ranging from buses to electric vehicles.

Transkon Jaya’s Corporate Secretary, Alexander Syauta, explained that the company had already established three ISP service points in Sulawesi and intends to expand further by adding up to four new points. The company is also diversifying its customer base from plantation customers to gold mining, as a risk mitigation measure.

“The costs for this service expansion are relatively small because it only involves adding bandwidth and infrastructure. Consequently, the company targets that the ISP segment can contribute up to 10% of total revenue by the end of 2021,” he said after a media visit to the Beritasatu Media Holdings office in Jakarta on Friday (28/5/2021).

Regarding the rental business segment, Alexander added that the company 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 2 buses and 2 trucks to an infrastructure company. The cost for 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 stated.

For this year, Transkon Jaya has allocated a capital expenditure (capex) of IDR 100 billion. This budget will be used for the purchase of 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, stated that this target would be supported by a strategy to maintain financial performance with the selection of financing that can benefit Transkon Jaya, such as finance lease financing that has a significant impact on reducing financial and tax burdens.

“One of them is the increase in revenue from several new customers and new projects that the company has acquired after being listed on the Indonesia Stock Exchange (IDX),” she concluded.

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