Mining vehicle rental company PT Transkon Jaya Tbk (TRJA) has set up its Capital expenditure (Capex) of IDR 600 billion (US$40 million) in 2023 for new vehicle procurement and business expansion.
Established in 2002, the company is based in Balikpapan, East Kalimantan, and focuses on offering 4×4 and 4×2 vehicle rental services to the mining, oil and gas and construction industries. Their fleet includes a wide range of vehicles such as light trucks, buses, human transportation, ambulances, service bodies, rescue vehicles and other specialized vehicles. The company has a presence in several islands including Kalimantan, Sumatra, Sulawesi, West Nusa Tenggara, Maluku and Java. It operated more than 100 workshop facilities to support its 3,000 vehicles in 2022.
Expansion in eastern and western parts of Indonesia
Transkon would buy new vehicles in 2023 using the Capex, said the company’s Head of Investor Relations Geraldine Simanjuntak.
“We will always expand in many ways, namely developing the holding and our subsidiaries by expanding business fields and adding new offices and other corporate actions,” she told Kontan.co.id on January 29, 2023.
The company will expand its business by opening offices in the eastern and western parts of Indonesia in 2023. The development of new offices correlates with the increasing demand in 2022. Transkon hopes the expansion will increase its revenue and net profit.
“This year’s revenue target is projected to increase by 30%-40%, compared to last year, while the profit target is increased by 10% -20% compared to 2022,” Simanjuntak said.
Due to the 2022 high demand, Transkon will purchase new vehicles to fulfill the need of the market. The company hopes the expansion process will be done through its subsidiary.
Risks in rental business
According to Simanjuntak, the major factor that might hinder the company’s performance was the 2023 global recession threat. This, in a way, has created uncertainty on Indonesia’s economy in general and the availability of new units in particular.
