Taxi operator, PT Express Transindo Utama Tbk (IDX: TAXI) reports the company' latest condition amid the COVID-19 pandemic and the debt burden that is surrounding the company - Photo by Express Transindo

JAKARTA (TheInsiderStories) – Taxi operator, PT Express Transindo Utama Tbk (IDX: TAXI) reports the company’ latest condition amid the COVID-19 pandemic and the debt burden that is surrounding the company. In addition to the mounting debt bondage, the Rajawali Corpora’ subsidiary business is also pressured by the spread of the coronavirus.

The company, which has been operating commercially since April 1989, has experienced a halt and restriction of the company’s operations since the spread of the deadly virus, especially regular taxis, premiums, vehicle rental and limousine services, and stopping operations on bus rental services in Jakarta – Bekasi – Depok – Tangerang (Jabedetabek).

Recently, Express has received a summons for the Debt Payment Obligation (PKPU) on June 30 regarding the request submitted by its debtor received by the Central Jakarta Commercial Court. The first hearing of the lawsuit was carried out on July 2, 2020.

In the midst of this pressure, the president director, Johannes Triatmojo, said that his party would undertake a number of strategies to restore the company’ condition. He revealed in a disclosure of information on Monday (07/06), the amount of its bond debt was Rp681.9 billion (US$48.02 million) as of March 31, 2020.

Most of the obligations were Rp549.1 billion in debt obligations and Rp90 billion in arrears and penalties, Rp.55 in debt tax 8 billion and short-term debt to third parties amounting to Rp37 billion. Last year, the net loss of the operator owned by conglomerate Peter Sondakh was reduced 67 percent to Rp275.50 billion from the same period in 2018 which was a net loss of Rp836.37 billion.

The company’ revenue also dropped dramatically 44 percent to Rp134.25 billion, from 2018 amounting to Rp241.66 billion. The cost of revenue was also reduced to Rp293.92 billion from Rp433.24 billion.

Going forward, said Triatmojo, the taxi manager consistently strives for steps that have been and will be implemented in a sustainable manner, including continuing the bond debt reduction program by selling non-core and non-productive assets.

In addition, continuing cost efficiency programs and implementing strict budget policies in both operations and headquarters, through adjusting the number of employees and consolidating operations and closing a number of inactive pools.

Based on Express’ financial statements as of September 2019, the company’ shares are held by Zico Allshores Pte Ltd 18.44 percent, PT Rajawali Corpora 17.81 percent, UOB Kay Hian Pte. Ltd., 15.13 percent, and public investors 48.62 percent.

US$1: Rp14,200

Written by Editorial Staff, Email: theinsiderstories@gmail.com