The large number of used vehicles within Indonesia means businesses see plenty of changes to sell more cars online. Several companies that aren't already in the used car market are interested in entering the online retail business.
For example, PT Blue Bird Tbk (BIRD) makes a used car auction business. Last week, BIRD collaborated with Mitsubishi UFG and Sturdy Takari to form a joint venture. The three of them built a new company, namely PT Balai Lelang Caready. The joint venture company requires an investment of Rp23 billion at the initial stage. The BIRD has a 51% capital ownership in the company.
Currently the offline auction hall already exists in Bekasi. The plan will be the addition of new areas but the location has not been revealed. Serambi strengthens auction sales through online caready.co.id.
BIRD's Finance Director, Sandy Permadi explained that the used car market is very wide. So the company is interested in investing in this new subsidiary as part of the BIRD business ecosystem.
"The goal is to be a place to sell used Blue Bird cars as well as to sell used cars from leasing companies and the public," Sandy explained a few moments ago. Just for info, currently used car sales are still in the Blue Bird pool and will still run even though there are already used car stock exchanges.
Sandy explained that the contribution of the performance of its subsidiaries is still small, which is below 10% of total BIRD revenue. "But the final goal is to strengthen the business ecosystem of the Blue Bird group," he explained.
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