JAKARTA (TheInsiderStories) – Indonesian MNC Group, through PT Indonesia Transport & Infrastructure Tbk (IDX: IATA), has entered into a binding term sheet to acquire the majority stake in PT Anterin Digital Nusantara, based online logistics and transportation startup under the brand Anterin, the management has announced on Wednesday (01/29). IATA is targeting to close the transaction by the end of February 2020.
“IATA chooses Anterin because of its vision. Anterin is created to make changes in current ride-hailing operation”, said Wishnu Handoyono, Vice President Director of IATA, through a press statement.
Anterin has moved fast to penetrate the market. Within less than a year of its operation, Anterin has more than 300,000 registered drivers and 530,000 customers, operating in 51 cities throughout Indonesia.
Since 2017, the company has joined forces with web development and system integrator PT Teknologi Kode Indonesia (TLab) to set up a research and development (R&D) facility in Yogyakarta. Both Anterin and TLab will use the R&D center to conduct research as well as develop systems and applications.
The business has expanded beyond ride-hailing, which now already includes delivery service for goods. This year, it will further tap into more exciting new services, including taxi service (in collaboration with taxi provider), food delivery service, shuttle, rental and helicopter among others, it said.
The main difference between Anterin and other ride-hailing providers is the way Anterin treats its drivers. Anterin does not burden the drivers by charging a commission on each transaction, but with a monthly subscription system, the company said.
This business model is considered fairer and more profitable for the drivers. The business model gives an answer to the complaint of drivers who often feel that ride-hailing operators charge too much of a portion for drivers’ work.
In addition, users are also benefiting from features and driver selection option in the application. With this feature, costumers will get a more reasonable price, as mutually agreed, without having to be dictated by the application.
Anterin was established in June 2016 in order to challenge the current online logistics and transportation players such as Go-Box by Gojek, and the brick and mortar players such as JNE and Tiki, by introducing an auction model into its system. According to a study by the Indonesian Logistics Association (ALI) and research firm Frost & Sullivan, Indonesia’s domestic logistics industry had a market size of US$163.4 billion in 2018 and is expected to grow by 10-12 percent in 2019. Anterin is aiming to at least have 1-2 percent market share in the industry.
IATA realizes that the future business including the transportation industry will be driven by technology, according to Handoyono. The acquisition of Anterin is in line with IATA’s strategy to enter into application-based transport like Grab and Gojek. IATA believes that this acquisition will change the outlook of the company to become extremely interesting with a promising future.
The company will also immediately register new shares in order to increase capital without pre-emptive rights. In this corporate action, IATA issued 718.15 million new shares, according to Handoyono. IATA hopes to get fresh funds of Rp35.91 billion (US$2.56 million), with a price of Rp50 per share.
Written by Lexy Nantu, Email: firstname.lastname@example.org