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View all search resultsExecutive Column: Bluebird stays course amid rising fuel costs, stiffer competition
Bluebird CEO Adrianto Djokosoentono spoke to The Jakarta Post’s Ni Made Tasyarani about how the company is navigating headwinds over rising fuel costs while trying to preserve customers’ purchasing power.
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Bluebird CEO Adrianto Djokosoentono. (Bluebird/-)
I
ndonesia’s transportation and logistics sector is facing mounting pressure from the global energy crisis and surging oil prices, driven by the lingering impact of the United States-Israeli war on Iran. Across Southeast Asia, taxi operators have been hit hard, forcing many to pass rising costs on to consumers through higher fares.
Adrianto Djokosoetono, CEO of major taxi operator Bluebird, spoke with The Jakarta Post’s Ni Made Tasyarani about how the company is navigating these headwinds while trying to preserve customers’ purchasing power. He also outlined why transitioning the firm’s predominantly gasoline-powered fleet to electric vehicles is far from straightforward and requires careful consideration.
Question: To what extent are rising fuel prices impacting Bluebird’s operations?
Answer: The impact of the war in the Middle East is far-reaching. The rupiah exchange rate and the [US] dollar have been affected. This means our ability to purchase imported goods has weakened and logistics costs have risen.
Public transportation uses subsidized gasoline and diesel. So, as long as their prices remain the same, there will be no direct impact.
While some of our vehicles that offer premium services are using non-subsidized fuel, such as Golden Bird, this is not the first time Bluebird has faced [fuel price] changes. What we are doing now is based on experience. It depends on how much the increase is, and based on that, we will assess whether it can be passed on to customers.
People’s spending power is the bigger concern at the moment, unless, of course, the prices of subsidized gasoline and diesel increase in the future.
