Lorena's Bus Strategy During The COVID-19 Pandemic: Trying To Be Transport Of Medical Waste

JAKARTA - 2020 is considered a difficult period for businesses due to the effects of the COVID-19 pandemic. A land transportation company, PT PT Eka Sari Lorena Transport Tbk, has various strategies for 2020 so that it can survive the pandemic.

Quoted from the disclosure of company information on the Indonesia Stock Exchange (IDX) website, Monday, August 24, Lorena's strategy in 2020 is to change the business model, from Mass Public Transportation services to Boutique Mass Transportation oriented towards quality not quantity.

"The company is also evaluating the intercity and interprovincial (AKAP) routes. Routes that are in direct contact with air and rail transportation modes will be diverted to routes that still have potential," wrote Lorena's management.

Lorena has also strengthened short-distance routes, namely TransJabodetabek, Jakarta Residence Connexion and Jakarta Airport Connexion. Currently, in the TransJabodetabek Regular and Jabodetabek Residence Connexion (JRC) sectors, there are four routes, namely: Kota Wisata-Legend Wisata-Thamrin, City of Tourism-Legend of Tourism-Sudirman, BSD City-Kota Wisata / Legend of Tourism, BSD City-MRT Fatmawati.

As for the Jabodetabek Airport Connection (JAC) sector, there are three routes, namely: Bogor-Halim Perdanakusuma, BSD City-Halim Perdanakusuma, Kota Wisata / Legend Wisata-Halim Perdanakusuma, BSD City-Soekarno Hatta Airport.

In addition to the routes mentioned above, the company has also obtained principle permits from the Jabodetabek Transportation Management Agency (BPTJ) for the route: Bogor / Mall Boxes 123 / Royal Tajur / Rancamaya-Soekarno Hatta Airport, RA Kartini South Jakarta-Soekarno Hatta Airport, Telaga Sawangan Golf-Soekarno Hatta Airport.

"The company will also continue to strengthen digital marketing and e-ticketing (online ticketing) and sales at Traveloka, Alfamart and Indomart to make it easier for customers to buy tickets," explained Lorena's management.

Another Lorena strategy is to enter the Bus Rental segment with a work contract of more than 1 year. And the company's new strategy which is currently in the exploration stage is the development of a type of transportation for medical waste or hazardous toxic materials (B3).

For information, Lorena recorded a net loss for the year of IDR 11.46 billion in the first quarter of 2020. The loss value increased compared to a net loss of IDR 5.35 billion in the same period the previous year.

Lorena's net sales in the first quarter of 2020 also fell to IDR 20.97 billion, from IDR 22.63 billion in the same period the previous year.

The company's total assets reached IDR 301.23 billion in the first quarter of 2020, down from IDR 302.64 billion total assets until 31 December 2019.

The transportation sector is indeed under heavy pressure due to the COVID-19 pandemic. The closure of tourism spots, the Large-Scale Social Restriction (PSBB) policy, followed by a ban on going home, has absolutely hit the sources of income of a number of transportation companies.

Under these conditions, the average mode of transportation such as buses must be grounded. This in turn has an impact on employees, especially bus drivers, who inevitably have to be laid off.

Land Transportation Organization (Organda) data revealed that the total number of workers laid off in the land transport sector until April 2020 reached 1.5 million people. This happened because the number of passengers using land public transportation fell drastically to 90 percent in the midst of the corona virus pandemic.