P

ublicly-listed transportation firm PT Panorama Transportasi (WEHA), better known as White Horse, has set aside Rp 194 billion (US$16.1 million) this year to expand its fleet, particularly regular taxis.

White Horse financial director Angreta Chandra said after a shareholders meeting on Friday that around 70 percent of the Rp 194 billion would be used to purchase 700 new regular taxis, while the remaining 30 percent would be used on other vehicles.

She said that 30 percent of the fund would be from internal cash, while the other 70 percent would be from bank loans.

'€œWe see that demand for regular taxis in Greater Jakarta has surpassed supply,'€ she went on, adding that her firm currently operated 400 executive and 300 regular taxis in the city.

White Horse operational director Agustono Haliman said that he was upbeat that his firm would be able to cash in on Jakarta'€™s market.

'€œTaxi demand in public places, such as malls, airports and hotels, is still relatively high despite fleet expansion by other taxi operators,'€ he said.

The ratio of taxis to every 1,000 people in Indonesia is only 0.24, while the ratios in Malaysia and Singapore are 3.12 and 5.20, respectively, according to a 2012 Euromonitor biannual report.

The report also projected that Indonesia'€™s taxi demand would grow by 18.2 percent on a compound annual growth rate (CAGR) throughout 2012 to 2016, while supply was estimated to grow by only 16 percent in CAGR over the same period.

Angreta said that she estimated that White Horse taxis would make up 40 percent of its total revenue, a surge from 29 percent last year, if all the new taxis hit the streets by the fourth quarter this year.

She said that while boosting revenue from its taxi service, her firm would also boost revenue from other fleet services.

Besides buying new regular taxis, White Horse will buy 218 rental cars, 18 intercity shuttle cars and 10 buses this year.

Angreta said that apart from the money allocated to fleet expansion, her firm had also allocated Rp 75 billion from last year'€™s rights issue to build new taxi pools in Greater Jakarta.

Other than taxis, White Horse, which is a subsidiary of the country'€™s largest tour and travel firm Panorama Group, currently operates 613 units consisting of buses, rental cars and intercity shuttle cars.

Angreta said that her firm targeted to book a 33 percent increase in revenue to Rp 315.2 billion this year, from Rp 236.9 billion last year.

The firm also aims for a 971 percent increase in net profit to Rp 18.9 billion this year from Rp 1.7 billion last year.

'€œWe believe that the target is achievable, especially with our fleet expansion and taxi fare hike,'€ Angreta said, adding that her firm had just increased its taxi fare although the fuel price hike occurred last year.

White Horse'€™s revenue jumped by 18 percent to Rp 236.8 billion last year from Rp 201.2 billion in 2012.

The firm'€™s bottom line, meanwhile, slid 70 percent to Rp 1.7 billion last year from Rp 5.9 billion in 2012, mainly due to the floods across Jakarta and a 40 percent increase in the fuel price last year.

Shares in WEHA closed at Rp 271 on Friday, a 0.37 percent decline from its Thursday'€™s closing.