More expensive models now available for rental

More expensive models now available for rental

Rikza Abudllah, Contributor, Jakarta

Dozens of companies in Jakarta offer automobiles for rent at
various rates and with different levels of service.

To look for the addresses of companies offering automobiles
for rent, we can search the Yellow Pages under the heading "Motor
Car Rental & Leasing", or surf the Internet.

The web-site indotourism.com, for example, offers the
addresses and telephone numbers of such companies but its entries
would appear to need updating.

There are a lot of companies offering such services in Jakarta
and Indonesia's major cities. Most of the companies offer both
long-term and short-term rentals, although some of them offer
only daily or even hourly rentals. PT Martha Limousine Service,
which specializes in providing limousines for wedding ceremonies,
for example, rents its six Mercedes-Benz cars on an hourly basis.

Rental companies affiliated to automotive producers,
assemblers or dealers generally promote the rental of vehicles
produced by their own parent companies or affiliates.

PT Serasi Autoraya, which is better known as Astra Rent a Car
(TRAC), for instance, has a fleet of over 6,500 vehicles mostly
produced by its affiliates within the Astra Group. These vehicles
include Toyota Solunas, Toyota Corollas, Toyota Camrys, Toyota
Crowns, Toyota Land Cruisers, Toyota Kijangs, 3-series BMWs,
Peugeot 206s, Daihatsu Tarunas and Isuzu Panthers.

"However, if customers want to rent other cars, we will do
what we can to satisfy them," TRAC's marketing manager, Edi
Gunawan, told The Jakarta Post Wednesday.

PT CSM Corporatama, better known as Indorent, has a number of
car models and makes in its fleet, including Nissan Terranos,
Nissan Serenas, Nissan Infinitis, Mazda Cronos, Mazda E2000s,
Mazda Familias, Mazda Interplays, Mazda Capellas, Mazda Baby
Boomers, Mazda VanTrends, Suzuki Balenos, Suzuki Escudos, Suzuki
Sidekicks, Suzuki Esteems, Suzuki Katana GXs, Suzuki Futuras,
Volvo S90 Executives, Volvo 960s, Volvo S70s, Opel Blazers,
Ssangyong Boxers, Volkswagen Caravelles, Audi A4 2.6s and Hino
vehicles. Most of the cars are assembled or imported by the
companies' sister companies in the Indomobil Group.

"But since 1998, after the majority shares of CSM Corporatama
were acquired by Hamfred Ltd of Hong Kong from the Indomobil
Group, we also provide vehicles of other makes and types that are
required by our customers," chief of the marketing department,
Ella Kartika, said Thursday.

Apart from these vehicles, CSM Corporatama's fleet of about
4,000 automobiles, therefore, also includes Mitsubishi L300s,
Toyota Kijangs, Toyota Coronas, Toyota Crowns, 3 and 5 series
BMWs, Isuzu Panthers, Chrysler Cherokees and Peugeot 405s, she
said.

"We are ready to buy a brand new car for a potential customer
who is committed to renting it for a minimum of two years," noted
Ella.

PT Berlian Abadua Satu rents 270 Mitsubishi vehicles,
comprising Gallants, Lancers, Kudas and L300s, which are produced
by its parent firm, PT Krama Yudha Tiga Berlian.

Volvo House Fatmawati, an authorized Volvo dealer owned by PT
Central Olympindo Auto, specializes in the daily and long-term
rentals of latest model Volvos, especially Volvo S40s and Volvo
S80s.

But rental companies that are not affiliated to automotive
producers generally offer vehicles that, according to them, are
in great demand from customers.

PT Golden Bird, a subsidiary of the Blue Bird Group, offers
about 1,500 cars of various types, including Toyota Corona
Absolutes, Volvo 960s, Mercedes-Benz C180s, Mercedes-Benz E220s,
Mercedes-Benz E230s, Mercedes-Benz New Eyes and Mazda E200s.

"For customers who are committed to renting for a minimum of
two or three years, we are ready to provide brand new cars of any
make, type and color that they choose, as long as the requested
products are available on the domestic market," Agus Tiwar, a
sales manager at Golden Bird, told the Post.

The rental rates charged by rental companies are generally
competitive, relative to the qualities of the products and
services offered. But we must be careful because the rates
charged by different companies may cover different types of
service.

"Our rates, according to my personal observations, are
generally about the same as those charged by TRAC, but are more
expensive than those charged by smaller firms," Agus said.

The rates for long-term rentals usually include value added
tax (VAT), vehicle tax and the cost of maintenance and car
replacement. The cost for the replacement of lubricating oil also
the responsibility of rental companies, but the cost of fuel,
road tolls, parking charges and other operational costs are paid
by the customers.

The payment of a chauffeur is included in daily rental rates
but not in monthly or yearly rental rates.

"But our rates ranging from Rp 8 million (about US$856) to Rp
15 million per month for each of our Volvo cars include the
payment of a chauffeur but exclude VAT," said Tommy Handoko,
Volvo House's project manager.

And the rates for daily rentals are commonly more expensive
than monthly or yearly rental rates.

PT Gekabei Motor, a subsidiary of the Association of
Indonesian Batik Cooperatives (GKBI), for example, rents a Toyota
Kijang van at Rp 400,000 a day or Rp 5.75 million a month.
Furthermore, customers will get a discount of one month's rental
if they lease a vehicle for one year with payment in advance,
according to deputy director Mohammad Chanani.

Inapri Rustianti, a marketing executive with PT Berlian Abadua
Satu, said her company charged between Rp 500,000 and Rp 600,000
(excluding 10 percent VAT) for the daily rental of a Mitsubishi
Gallant car and Rp 11 million to Rp 12 million for monthly
rental. The monthly rate is discounted by between Rp 1 million
and Rp 2 million for customers who commit themselves to a yearly
rental.

Edi said TRAC's daily rates ranged between Rp 200,000 and Rp
2.7 million, and its monthly rates between Rp 3 million and Rp 35
million.

The payments for chauffeurs vary, apparently depending on the
different costs incurred by the rental companies in training
them. Gekabei Motor charges Rp 700,000 for each of its chauffeurs
and Berlian Abadua Satu charges Rp 825,000. The payments for
chauffeurs are set by Golden Bird in a range of between Rp 1
million and Rp 1.5 million, depending on the level of luxury of
the rented car.

Golden Bird, TRAC and Indorent operate training centers for
their drivers and are very selective in recruiting chauffeurs.
Small firms commonly cannot afford to provide professional
training for their chauffeurs due to limited budgets.

Besides the services of the chauffeurs, the quality of car
rental is also determined by the replacement of the rented cars
while they are being repaired. Reputable companies will usually
replace the rented car with a similar or better vehicle if it
needs repairing.

"We usually provide a replacement car one day before the
rented car needs maintenance in our workshop," Tommy said.

Agus said out of the 1,500 cars in Golden Bird's fleet, about
1,000 were rented under long-term contracts, while the other
5,000 were rented daily through its outlets in five-star and
four-star hotels. If there was any need for the replacement of
long-term rented cars, any of the daily-rented vehicles of a
similar class could be sent to the renters.