Express Taxi Will Rise From Destroyed After Allowed To Write Off IDR 169.85 Billion Debt To Rajawali Corpora Owned By Conglomerate Peter Sondakh

Taxi Express. (Photo: Wikimedia Commons)

JAKARTA - The management of transportation services is like a windfall. The company is allegedly going to record a net profit at the end of 2021 after recording losses until the end of September 2021.

This is in line with the Express Taxi operator company which will record profits from debt relief to their shareholders, namely PT Rajawali Corpora owned by conglomerate Peter Sondakh.

Quoted from the information disclosure page of the Indonesia Stock Exchange (IDX), Corporate Secretary Express Transindo Utama, Johannes BE Triatmodjo, in his letter to the Director of Financial Assessment of Companies in the Services Sector of the Financial Services Authority (OJK) dated April 21, submitted a report on the settlement of the company's affiliate debt.

It was written that on December 1, 2021, Express Transindo and Rajawali Corpora had signed a debt write-off agreement. Based on the agreement, Rajawali Corpora agreed to write off its receivables from Express Transindo amounting to IDR 142.625 billion, along with interest, fines, and other fees if any.

Rajawali Corpora is a shareholder of TAXI. Based on the latest monthly shareholder registration report, as of March 31, 2022, Rajawali Corpora owns 10.7 percent of TAXI's shares.

Based on the financial statements as of September 30, 2021, Express Transindo Utama still recorded a balance of debt to Rajawali Corpora of IDR 169.85 billion which was presented as part of long-term liabilities.

After the completion of this debt write-off transaction, Express Transindo will write off the debt to Rajawali Corpora and record other income in the consolidated statement of profit or loss and other comprehensive income of IDR 169.85 billion as of December 2021.

That's why, Johannes said, Express Transindo will book a net profit in 2021. The entire profit comes from the gain on debt write-off to Rajawali Corpora.

"This will directly have a positive impact on business continuity and the company's solvency", Johannes said in the letter.

For information, as of September 30, 2021, Express Taxi posted a net loss of IDR 32.73 billion. The loss was down 37.8 percent compared to the previous year period.

TAXI's loss was due to the cost of revenue which was greater than its revenue. As of September 2021, Express Transindo posted a revenue of IDR 5.9 billion, while its cost of revenue was IDR 16.9 billion.

As a result, TAXI posted a gross loss of IDR 0.99 billion. The loss was added by general and administrative expenses of IDR 4.28 billion and interest expenses of IDR 5.28 billion.

As of September 30, 2021, TAXI has a liability of Rp249.43 billion. With the elimination of debt by Rajawali Corpora of IDR 169.85 billion, TAXI's liability will decrease to IDR 79.85 billion.