Subsidiaries of Indonesian conglomerate Astra International and Toyota Motor Corporation have set up a joint venture to offer full-service rental for commercial vehicles, according to a statement on Friday.
PT Arya Kharisma and Toyota Motor Asia Pacific Pte Ltd have formed a 50:50 JV called PT Mobilitas Digital Indonesia, which is slated to start operating in the fourth quarter of 2022.
“In the early stages, the JV will focus on running a commercial vehicle rental business on Java Island,” Gidion Hasan, Arya Kharisma’s president director, said in the statement.
The decision was made amid improving economic conditions in the archipelago that show market potential in the transportation and logistic sector.
Earlier this week, the office of the Indonesian Chief Economic Ministry said Toyota has pledged to invest 27.1 trillion rupiah ($1.8 billion) over the next five years in the country to produce electric vehicles.
The companies cited data from the statistic bureau that showed the transportation and logistics sector, which accounts for 4.62% of the gross domestic product, recorded the highest growth among other sectors in the first quarter of 2022.
Better economic conditions have been reflected in Astra’s performance as well. The company reported a 18.17 trillion rupiah profit in the first six months of 2022, more than a 105% increase compared with the same period a year earlier.
During the period, Astra saw an increase in its car sales and profit in most of its business arms.