Indonesia’s Blue Bird, Japan’s Mitsubishi UFJ Lease enter auto auction market
JAKARTA, NNA - Indonesia's largest taxi operator Blue Bird Group said it is teaming up with a unit of Japan's biggest lender Mitsubishi UFJ Financial Group Inc. to enter the local automobile auction market in the world's fourth most populous country.
According to a filing lodged with the Indonesia Stock Exchange, Blue Bird on Jan. 24 set up a joint venture, PT Balai Lelang Caready, with Mitsubishi UFJ Lease & Finance Co. and its Indonesian auto loan lender, PT Takari Kokoh Sejahtera. The venture is capitalized at 23 billion rupiah ($1.6 million).
Blue Bird holds a majority 51 percent stake, while Mitsubishi UFJ Lease has a 39 percent share and its Indonesian unit holds 10 percent.
Neither Blue Bird nor Mitsubishi UFJ Lease disclosed details of the joint venture, including the timing of the launch of the service and sales target.
Industry sources point to the fact that substantial pent-up demand for resale of automobiles and motorbikes is attracting Japanese and other foreign companies to Indonesia.
A person familiar with the country’s auto trade, who declined to be named, said that 220,000 to 240,000 cars and motorbikes were put up for auction in 2017, and that about half of them were sold.
Three Japanese companies -- Sumitomo Corp., Japan Bike Auction Co. and Mitsui & Co. -- jointly entered the motorcycle auction market in Indonesia in 2011. Bayauc Co., an Osaka-based auction operator, and Indonesia's Nasmoco Group began an auto auction business in 2016.