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Prolonged Pandemic, Here’s the Blue Bird Taxi Condition!

Jakarta, CNBC IndonesiaA recent Organda report revealed that ground transportation operations including taxis were not at full capacity. Many fleets are unemployed due to the tightening of community mobility as a result of the prolonged pandemic.

Moreover, recently there was a regulation on the Enforcement of Restrictions on Community Activities (PPKM) which recently limited the mobility of residents until 5 July. Public transport capacity is limited to only 50% of vehicle capacity.

What is the actual condition of the taxi company?

PT Blue Bird Tbk, for example, continues to operate in the midst of a pandemic. The company also continues to rejuvenate its fleet even in the midst of a pandemic, including selling assets that have passed their operating period.

This is reflected in the financial statements for the first quarter of 2021, during the period ended March 31, 2021 and the year ended 2020, the Group reclassified several taxi units that were not operating. With a carrying value of Rp 143.8 billion and Rp 571.1 billion, as non-current assets held for sale.

Meanwhile, the group’s taxi fleet which is not operating and reclassified as non-current assets held for sale as of March 31, 2021 and December 31, 2020, amounted to Rp 202.7 billion and Rp 247.5 billion, respectively.

Blue Bird’s Head of Investor Relations, Michael Tene explained that the non-current assets held for sale are cars that have indeed reached the age of 5 years and according to our procedures were removed from the operating fleet for sale. He emphasized that this was not due to a reduction in fleet operations.

“I can’t give detailed figures but most of our taxi fleet is operational,” Michael told CNBC Indonesia, Friday (25/6/2021).

He emphasized that the operating fleet for sale was part of Blue Bird’s long-standing vehicle sales policy even before the pandemic.

Regarding the tightening of PPKM, of course it will affect demand from the use of company taxis. However, the company continues to follow all the mandates given by the government.

“We will of course adapt our operations to the applicable regulations. Since the beginning of the pandemic in 2020, we have implemented strict health protocols such as daily vehicle disinfection, providing hand sanitizer in the car, health driver which is monitored every day, and of course the transport capacity,” he said.

The general chairman of the DKI Jakarta Land Transport Organization (Organda) DPD, Shafruhan Sinungan, had said that land transportation operations were not at full capacity. Many fleets are unemployed due to the tightening of community mobility.

He gave an example, such as the taxi business. Many taxi cars are idle because of minimal demand.

“For example, a taxi company has a fleet of up to 1,000 cars, the most that is used is only 100 units, so what about the 900? If left unchecked, it will become a carcass. At most, currently, an average of 15 percent of its fleet is operating,” he said. .

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Note: This news has an error in the title and quote, due to an error from the editor.

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