Burhanuddin Abe

Burhanuddin Abe
Contributor/Jakarta

Transportation is vital to professionals in major cities like
Jakarta but buying an automobile is not the only option. With a
flourishing rental industry offering good service and affordable
rates, renting a car is now an option.

Car rental businesses in the country are currently booming,
thanks mostly to the support of large companies, which rent the
cars for long-term periods of two to four years. Individuals, of
course, are also renting cars for personal use -- but generally
for shorter terms.

Many big companies have decided to rent because it is more
efficient.

A mid-sized industrial concern in Cikarang hires cars for its
managers; they drive 1996 Toyota Kijangs rented for Rp 4.5
million a month. Meanwhile, a telecommunications company in
Jakarta prefers new Mercedes for its directors, which are hired
monthly at Rp 30 million each.

Car rental rates, depending, among other things, on the types
of the cars, the length of the rental period and the number of
cars hired. However, the competitiveness of the industry means
that rental rates differ little from one company to another.

Prior to the Muslim post-fasting Lebaran holiday or other long
breaks, rental companies often raise their rates for individuals
as the demand remains high.

"Toward Lebaran, it is often hard to find a car to rent. Most
of the cars have been hired by the second week of the fasting
month," said an employee of the mid-sized Cipaganti rental
company with many branch offices.

This company is unlike others in that it will rent cars from
individuals and then sub-let them to its customers.

Larger companies with fleets of 400 to 11,000 cars include,
TRAC (Astra Rent-A-Car), Indomobil Car Rental, Blue Bird, Tunas
and Orix.

Prodjo Sunaryanto, TRAC managing director, said that many
companies had become their customers because renting cars would
save them on maintenance costs.

"As transportation management is not the core business of
these companies, matters related to cars should be left to
specialists like us," Prodjo said.

Established in 1987, Toyota Rent A Car, better known by its
acronym "TRAC" started with only six automobiles. This year, the
subsidiary of PT Astra International, operates about 11,000 cars,
including sedans, jeeps, station wagons, minibuses, trucks and
pick-ups from Toyota, Isuzu, Daihatsu, BMW and Peugeot. However,
"most of our cars are Toyota Kijangs," Prodjo said.

In addition to providing qualified drivers, the company is
also supported by 250 workshops and service centers across the
country, all under the management of PT Serasi Autoraya, which
holds the sole license from TRAC and boasts over 10,000 corporate
and retail customers.

TRAC's corporate customers include BCA, Bank Mandiri, Avon
Indonesia, Adidas, Multi Bintang Indonesia, Sucofindo, Garuda and
Semen Gresik.

And car rentals are a lucrative business. In 2002, TRAC booked
turnover at Rp 353.6 billion.

Indomobil Sukses International Tbk, a major automotive group
in Indonesia, has also developed its car rental division,
Indomobil Car Rental, to tap into the growing rental business.

Holding on to its vision "to be the best car rental service
company in providing Indomobil products", Indomobil Car Rental
uses the vast network of Indomobil Group, the sole agent of nine
famous automobile names -- Audi, Hino, Mazda, Nissan, Renault,
Suzuki, Ssangyong, Volkswagen and Volvo.

Indomobil Car Rental has a maintenance service network of more
than 200 workshops spread throughout 78 cities in 28 provinces.
These workshops belong to the branch offices of Indomobil Group
across the country and to official dealers.

One feature worth noting is the company's Mobile Platinum
package, in which a car can be rented daily or weekly (but for
less than three weeks) along with a professional chauffeur. In
October 2004, this Mobile Platinum package began with a Volvo
S40 and S80. Later, it also included cars of other makes.

Mobile Platinum provides services for special guests and
special events like wedding parties, conferences and
celebrations. People using this package are usually executives,
businessmen, government representatives, domestic and foreign
guests and wealthy individuals.

While TRAC and Indomobil Car Rental are established by leading
automotive companies, Japan's Orix is a car rental company
developed originally from a car leasing company. Orix provides
automobiles ranging from sedans to light trucks. There is an
option for the rent period ranging from one to four years, while
the rent is paid monthly.

This company takes care of everything related to the car you
rent, including its vehicle registration certificate, motorized
vehicle inspection, all-risk insurance, spare parts, a towing car
in case the car breaks down, a replacement with the same type of
car in case the one you rent gets into trouble, security and
round-the-clock assistance.

This operating lease division has 10 branches in several major
cities in Indonesia and cooperates with more than 300 authorized
workshops across the country. Therefore, it can claim nation-wide
operation, although about 80 percent of its customers are in
Jakarta and its surrounding areas. These customers are made up of
large companies and multinational or publicly-listed firms from
countries like Japan and the United States.

At present, Orix rents about 1,200 automobiles to more than
300 companies. "By the end of 2005, the number of automobiles
will have risen to some 2,000," said Jimmy Ronald H., the
accounts assistant to Orix's marketing manager.

The car rental business has good prospects. As this business
is highly lucrative, it has attracted not only automotive
companies, which basically wish to promote the image of their
products, but also non-car firm.

While they have many different packages, all the rental
companies agree on one thing. That good service, rather than low
rates, is the most essential part of their business.