Japan Bike Auction joins with Indonesian rival to expand vehicle sales
JAKARTA, NNA - Used motorcycle auction operator Japan Bike Auction Co. is stepping up efforts to gain a larger slice of the Indonesian used vehicle market by integrating its operations with those of a smaller local competitor.
PT. JBA Indonesia, a local unit of the Japanese company known as JBA, will take over the auto and motorcycle auction business handled under the BidWin brand by PT. Adi Sarana Lelang by the end of this month, Kazuhiro Shioyama, president of JBA Indonesia, told NNA on Tuesday.
Meanwhile, JBA Indonesia signed a contract with Adi Sarana Lelang on Friday calling for the allocation of shares worth about 146.2 billion rupiah ($10.4 million), equivalent to 46 percent of its outstanding shares, to the competitor on a private placement basis.
Shioyama remains in his post, and a director will join JBA Indonesia's board members from Adi Sarana Lelang. The JBA subsidiary will stop using the BidWin brand from March.
The combined number of JBA Indonesia's used autos and motorcycles auctioned off stood at over 120,000 units in 2018, with the largest market share of 25 percent. Adi Sarana Lelang ranked third with a 15 percent market share, according to the local unit.
"The domestic market overall has expanded at an annual rate of about 10 percent," Shioyama said.
Currently, JBA Indonesia is owned 66 percent by JBA, 14.5 percent each by Japan's Mitsui & Co. and PT. Summit Auto Group, an affiliate of Sumitomo Corp., and 5 percent by a local individual investor.
With the private share placement and 5 percent share purchase from the local investor, Adi Sarana Lelan, a subsidiary of rental car service firm PT. Adi Sarana Armada, will hold a 51 percent stake in JBA Indonesia.
JBA's shareholdings in JBA Indonesia will drop to 33.4 percent while Mitsui and Summit will see their interests reduced to 7.8 percent each.
JBA entered Southeast Asia's largest motorcycle market in 2011, and the combined number of used autos and motorcycles traded has since surged, reaching 6.8 times the 2012 level last year.
The Yokohama-based auction operator, which regularly holds auctions in nine locations in Indonesia, will have five more cities through the takeover. (NNA/Kyodo)