Automotive distributor PT Indomobil Sukses Internasional Tbk has planned to spend IDR2 trillion of capital expenditure (Capex) to further develop its car rental services, logistics and other business sector.
Founded in 1976, Indomobil is an automotive business that mainly focuses on car and motor vehicle manufacturing. It is the company that manages famous car brands such as Audi, Jaguar, Land Rover, Suzuki and more. Other than car and motorcycle manufacturing, the company also has businesses in other sectors such as financial services, car rental, contractor services and energy.
President Director Jusak Kertowidjojo said the company has set the budgeting of IDR 2 trillion for the development of the vehicle rental services, logistics and other business sectors. Until the first quarter of 2022, Indomobil has absorbed IDR 551 billion from its IDR2 trillion Capex budget, IDR286 billion for procurement of vehicle rental rentals and logistics, while the IDR265 billion are for other miscellaneous needs.
“The majority of IDR2 trillion is for the development of rental vehicles and the rest are for other business sectors,” he explained during the public expose on July 27, 2022.
Logistic business sees a rosy forecast due to the increasing trend in online shopping since the prolonged COVID-19 pandemic. Meanwhile, there has been no major disruption of car rental business by the pandemic since 2020 although it is yet unknown whether the rental business will recover to the pre-pandemic condition as the number of tourists is still limited due to health protocol restriction.
