Astra’s Serasi Revs Cash Flow to Auto Businesses

By webadmin on 09:43 pm Nov 20, 2011
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Ivan Dasa Saputra

Serasi Autoraya, a subsidiary of diversified conglomerate Astra International, plans to boost its capital expenditure by 150 percent next year to help finance its growing businesses in the automobile industry.

Serasi plans to spend Rp 3 trillion ($336 million) in 2012, up from Rp 1.2 trillion this year, Jefri Sirait, the company’s operating director, said on Saturday. Its businesses range from buying and selling used cars to car rental, logistics and taxi operations.

Jefri said the company aimed to boost its logistical operations amid growing demand. Serasi also plans to expand its taxi operations in other cities, including Jakarta, Palembang and Yogyakarta.

Serasi is 99.9 percent owned by Astra International.

The Jakarta-based company owns Mobil 88, which buys and sells used cars; a car rental company named TRAC; and logistics goods distributor Selog, which owns warehouses in six cities: Jakarta, Surabaya, Balik Papan, Banjarmasin, Samarinda and Pekan Baru. It also owns the Surabays taxi operator Orenz.

“We plan to boost all segments of our businesses,” Jefri said while on a retreat with journalists in Bandung.

Jefri said that the capital expenditure funds would come from bond sales and bank loans.

The company may issue at least Rp 1 trillion in bonds, he said. Last year, the company sold Rp 900 billion in bonds.

Serasi expects revenue to rise 42 percent this year to Rp 5 trillion from 2010, boosted by its used-car business, Jefri said.

Serasi’s revenue in the nine months through September rose to Rp 3.88 trillion, up 54 percent from the same period a year earlier.

Mobil 88 contributed to 45.6 percent of nine-month revenue; TRAC 41.6 percent; the logistics business 11.8 percent; and its taxi operations 1 percent.

The government has predicted that Indonesia’s economy will grow 6.5 percent this year, after expanding 6.1 percent in 2010.

The central bank made a surprise move earlier this month to cut key interest rates to record lows in an attempt to ensure economic growth as debt problems in Europe threaten to undermine global economic growth.

Low borrowing costs might also encourage Indonesian consumers to spend more on goods like cars and motorcycles.