Transkon Jaya (TRJA) Allocates IDR 100 Billion for Capital Expenditure (Capex) in 2021


11 Mar 2021


Dilansir Oleh


PT Transkon Jaya Tbk (TRJA), a company engaged in vehicle leasing and internet network services, has earmarked IDR 100 billion for capital expenditure (Capex) this year. Geraldine Simanjutak, Head of Investor Relations at TRJA, stated that the allocated capital would be used for the purchase of new vehicles.

The addition of vehicles will focus on new types of products that the company will offer for rental services, namely light trucks and light buses. This move aligns with the tender acquisition for infrastructure vehicle support projects. TRJA is currently directing its attention to the acquisition of spare parts and accessories that are compatible with the specified vehicle types and mining location standards.

Geraldine highlighted that light trucks and light buses represent the latest types of rental services provided by Transkon Jaya. This strategic move follows the company’s success in securing tenders for infrastructure support vehicle projects.

In addition to monitoring the potential increase in demand for rental vehicles based on macroeconomic conditions, TRJA is also considering the rising demand from coal and mineral companies in line with the strengthening trend in commodity prices.

Furthermore, the company has started replacing old vehicles for existing customers in the previous period. Previously, the company had restrained costs for the rejuvenation or replacement of vehicles. TRJA currently owns more than 2,000 vehicles, with an addition of approximately 40 units each month.

“With the distribution of the Covid-19 vaccine, the government is refocusing on development projects and infrastructure, which will certainly affect the demand for vehicles to support infrastructure businesses,” stated Geraldine.

She anticipates that the demand for vehicle rentals in 2021 will be better than the previous year. While optimizing existing business lines, TRJA is also making efforts to expand its business. Notably, the company expanded its operations to Halmahera Island, North Maluku Province, in early February 2021.

This project is a collaboration between Transkon Jaya and its new customer. Through this latest project, TRJA continues its expansion in 2021, realizing its mission to explore various business lines. The project will be carried out in an industrial area to facilitate the processing of minerals and the production of components for electric vehicle batteries.

As of now, the largest contribution to the company’s revenue still comes from mining companies. TRJA is pursuing several new contracts by participating in various tenders that are considered potential opportunities.

The financial performance of Transkon Jaya until the third quarter of 2020 has been robust amid the challenging market conditions caused by the COVID-19 pandemic. The company recorded a 9.56% year-on-year increase in profit, reaching IDR 34.38 billion.

Meanwhile, the company’s revenue also increased from IDR 301.77 billion to IDR 306.67 billion at the end of September 2020. The improved financial performance is attributed to several new projects undertaken by the company since the first half of 2020.

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