The rise of online taxi services has knocked the performance of PT Express Transindo Utama Tbk. and PT Blue Bird Tbk., two conventional taxi companies., JAKARTA – For consumers, the existence of an online taxi service provides a choice of convenient and practical transportation services. However, the same thing was not felt by conventional taxi companies.

PT Express Transindo Utama Tbk., Which has been on the Indonesia Stock Exchange (IDX) since 2012, is considered no longer a section for shareholders. In fact, even bondholders can no longer expect a lot of funds to return to their original schedule.

Last week, the issuer codenamed TAXI was scheduled to hold an Extraordinary General Meeting of Shareholders (EGM) to discuss the conversion of bonds into shares, which was a continuation of the General Bondholders’ Meeting (RUPO) on December 11, 2018. However, this failed to be discussed because the meeting did not reach quorum.

The debt in question is the 2014 Transindo Utama Express Bond I with a total principal value of Rp1 trillion.

Meanwhile, PT Blue Bird Tbk. (BIRD) must also be willing to experience a decline in performance.

Blue Bird taxi line. / Business

In the midst of the increasingly massive online transportation services, both two-wheeled and four-wheeled vehicles, the performance of TAXI and BIRD is indeed no longer sexy. However, the performance of the two corporations turned out to be a different trend.

If TAXI is working hard to restructure debt, BIRD can still breathe freely. In terms of assets, for example, Express continues to show depreciation.

In 2015, the assets owned by the company under the auspices of Rajawali Group reached Rp2.88 trillion. However, per quarter III / 2018, the value has shrunk to Rp1.47 trillion.

Express liquidity is tight. The picture is shown by the growth of short-term debt managed.

In 2015, the company had a short-term liability of Rp.425.77 billion. Per quarter III / 2018, the amount swelled up to Rp1.59 trillion, up nearly three times compared to the position in December 2017 which amounted to Rp535.11 billion.

In line with that, the company’s revenue has declined since 2015. At that time, the company still received revenues of Rp970.09 billion, but its value continued to shrink to Rp187.01 billion in the III / 2018 quarter.

The current year’s profit attributable to owners of the parent entity was also last tasted by the company in 2015, with a value of Rp32.24 billion.

From that position, until the period January-September 2018, the Express profit continued to fall. The company suffered losses of up to IDR 618.89 billion in quarter III / 2018.


The severe conditions were also recognized by the company’s management. In the 2017 annual financial report, released in April 2018, the board of directors claims to have worked optimally, especially in implementing strategies to carry out business activities.

A series of efficiency efforts in various aspects and management of risk management are always carried out anticipatively by the directors.

“This is carried out in a challenging and dynamic situation, where business competition is getting tougher with the presence of online transportation, and there is a shift in customer behavior,” the director wrote, as quoted by Bisnis, Tuesday (02/12/2019).

On the other hand, they also try to reduce the debt burden, including by releasing assets that are considered non-productive and applying various efficiency.

Latest, TAXI hands over land collateral to PT Bank Central Asia Tbk. worth Rp.43.44 billion, to pay off part of the company’s debt to the private bank. The company has also submitted a plan to sell 1,200 fleet units to pay part of the other debt to BCA.

Based on Business records, TAXI has reduced the number of pools from 32 pools in 2017 to 15 pools in 2018. This year, the company slashed it to only seven pools.

The company projects the efficiency carried out to reduce the burden by up to 30%. Various steps that have been prepared are believed to be the right strategy in the midst of the erosion of the conventional taxi industry.

Head of Capital Connection Research Alfred Nainggolan revealed TAXI was late in anticipating the impact of expanding online taxi services. He mentioned that online taxis were first present in Indonesia in 2014, but the impact was only felt in the 2016-2018 period.

It is rather difficult to ascertain the number of online taxis in Indonesia. Last year, the Ministry of Transportation (Kemenhub) once stated that the number had reached 175,000 in Jabodetabek for only one applicator. This figure is far above the ideal number spread in 15 regions, which is only 91,953 units.

Alfred continued that a similar problem was actually experienced by BIRD. However, the main problem that is now entangling TAXI is exacerbated by financial strategies.

“They are already attracting high interest rates of debt, around 12%, amid declining utilization conditions,” he said.

The BIRD is considered different because it still relies on the strength of internal capital in terms of expansion. So that, despite a decline in profits, Blue Bird Group was not overwhelmed by jumbo debt.

BIRD looks to counteract the latent danger of competition with online taxis. Although the performance was affected, the company was able to restore conditions and maintain positive performance.

In 2015, BIRD’s total assets reached Rp7.15 trillion. Its value is reduced to IDR 6.77 trillion per quarter III / 2018.

However, in terms of profit and loss, BIRD can form a hardiness strategy. In 2015, the company’s revenue was in the range of IDR 5.4 trillion, while per quarter III / 2018 was IDR 3.1 trillion.

Last year’s performance illustrates that the company’s anticipation began to bear fruit. The decline in the rate of profit was successfully braked and instead picked up 10.8% growth year-on-year (yoy) in the third quarter of last year, after experiencing a decline in 2015-2017.

As quoted by Bisnis on Thursday (11/08/2018), BIRD Investor Relations Michael Tene said the performance of the third / 2018 quarter had managed to rise because there was an increase in the average number of cars operating. The involvement of companies in a number of national and international agendas is called successful in hoisting utilization, although it is not a major factor.

BIRD participated in the 2018 IMF-World Bank Annual Meetings in Bali in October 2018, alerting more than 1,000 cars, including taxis.


Alfred revealed that actually two conventional taxi companies had the opportunity. Both are considered to have adequate fleet and management volume advantages.

Both TAXI and BIRD have looked at alternatives to capture services online. TAXI has partnered with Uber which eventually merged with Grab, while BIRD has partnered with Go Jek by offering Go Blue services.

“In fact, even Blue Bird’s internal applications are less pumping demand, Go Blue can actually grow. Meanwhile, TAXI has given up because the fleet is slowly decreasing, “he said.

However, the potential for luck is in the hands of BIRD. In addition to similar rivals slowly falling out, the company bearing the blue bird still manages quite a lot of fleets.

“In the 2017 period, it has begun to see a decline in profits,” Alfred said.

Conversely, TAXI must delete the debt books that have accumulated first. The method, from the conversion of bonds to shares, and then liquidates assets, including the spearhead of the business in the form of a taxi fleet.

“EBITDA TAX continues to be minus, this reflects operational decline, many fleets are sold. So, the problem is complicated, “he added.

Express taxi drivers are waiting for passengers at Soekarno-Hatta Airport, in Tangerang, Banten, Tuesday (03/20/2018). / JIBI-Felix Jody Kinarwan

EBITDA – stands for Earning Before Interest, Taxes, Depreciation, and Amortization – is one of the profitability ratios of a company. EBITDA can be used to estimate cash flows to pay debts and compare the performance of a company with other similar companies.

Based on Bloomberg data, EBITDA TAXI was recorded at minus Rp225.81 billion as of September 30, 2018. The figure was recorded to have declined since 2015, when the value was Rp514.36 billion.

On the other hand, EBITDA BIRD is still positive. Despite the decline since 2016, when the value was Rp1.53 trillion, the figure was still able to be in the range of Rp1.13 trillion per quarter III / 2018.

The development of information technology has straddled all types of conventional business. Only ideas and strategies that can glide at the tip of a digital tsunami wave, are resistant to disruption.