Indonesia car rental Adi Sarana gets partnership offers from Gojek, Uber, Grab

Photo by Adi Sarana Armada

Indonesia’s listed car rental and logistics company Adi Sarana Armada (ASSA) has received partnership offers from ride-hailing apps operator Go-Jek, Uber and Grab, which have been facing a tough regulatory environment in southeast Asia’s largest market.

The company is undecided such an alliance would require it to comply with government regulation pertaining to ride-hailing apps.

The government requires all ride-hailing apps to work in partnership with a rental car cooperative or company. So far, Grab Car and Uber have helped set up cooperatives for their drivers, while motorcycle taxi firm Gojek set up a company called PT Panorama Mitra Sarana to work with its own car-hailing app Go-Car.

Prodjo Sunarjanto, Adi Sarana’s president director told reporters, a partnership with Gojek, Uber or Grab will require the company to add more cars to its fleet as also drivers.

Earlier this year, both Uber and Grab launched an on-demand ride-hailing services for business clients triggering further competition to Adi Sarana and its peers.

Also Read : Indonesia’s bike app GO-JEK to enter new territory with GO-CAR

Director Hindra Tanujaya said, the company had allocated  a capital expenditure of Rp1 trillion ($73.53 million) of which Rp170 billion would be used for the purchase of 1,000 vehicles this year.

With this, Hindra said, Adi Sarana’s fleet would touch 18,500 with fleet utilization of 95 per cent.

More than 60 per cent of Adi Sarana’s Rp1.32 trillion revenue last year came from its rental car division. The company is targeting a 10 per cent increase in revenue this year, Prodjo said.

The government requires all ride-hailing apps to work in partnership with a rental car cooperative or company. So far, Grab Car and Uber had helped set up cooperatives for its drivers, while motorcycle taxi firm Gojek had set up a company called PT Panorama Mitra Sarana to work with its own car-hailing app Go-Car.

According to Transportation Minister Ignatius Jonan, until May 31, only 400 cars had registered with Jakarta Transportation Agency compared to thousands that operate in the capital city.

The Ministry of Transport released regulation number 32/2016 on non-route people transport services — enacted on April 1 but only coming into effect on Oct. 1 — which will force technology firms to work with external transportation companies that have been licensed by the ministry.

Any transportation company can request such license by submitting evidence that it owns at least five vehicles under the company’s name; has a designated place to pool and tend to the vehicles and employs drivers who have special driving licenses for public transportation.

Grab Indonesia managing director Ridzki Kramadibrata hopes to have all its partner’s cars pass the certification process by May next year.

As demanded by the government, Grab has partnered with a licensed third-party transportation provider cooperative called Koperasi Jasa Persatuan Pengusaha Rental Indonesia (PPRI). PPRI has started to submit GrabCar partners’ vehicles for testing to obtain roadworthy certification on May 16.

Also Read : 

After massive protests, Jakarta allows Uber and Grab to operate, but with conditions

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.