Indonesia Express Logistics

active

    The proposed investment is a convertible loan of up to US$70 million equivalent (for 15-20% fully converted equity interest) to PT Adi Sarana Armada (ASSA or Group), a leading transportation and logistics services provider in Indonesia, to support e-commerce logistics scale-up for the E-logistics division PT Tri Adi Bersama (Anteraja) (the “Project”). ASSA has multiple legal subsidiaries structured around the particular business licenses required for different aspects of its operations: 1) PT Duta Mitra Solusindo is the company that manages drivers for the car rental services; 2) PT Adi Sarana Logistik (ASL) is the non-active logistics company, with fleet logistic services managed through ASSA; 3) PT Adi Sarana Lelang (AS Lelang) is a non-operational car auction company established to manage the auction business through the joint venture with Japanese investors (Sumitomo and Mitsui) of PT Japanese Bike Auction Indonesia (JBAI);  4) PT Adi Sarana Properti (ASP) is a non-active entity created to manage the property portfolio of the car auction and e-commerce businesses;  5) PT Tri Adi Bersama (TAB) is the entity created to manage the e-commerce division, entitled Anteraja; 6) PT Adi Sarana Investindo (ASI) is a boutique investment company and non-active at the time of this appraisal; 7) ASSA Employee Cooperative is an entity established to support employees with small loans and other support and is non-active at the time of this appraisal. ASSA’s primary business is business to business car rental to corporate clients with a fleet of 22,000 vehicles, 17,000 of these rented to clients with no drivers and ~5,000 vehicles supplied with drivers with ASSA acting as a labor service provider to their clients. All ASSA drivers employed are full time fixed term contracts on a project by project basis. ASSA logistics business supplies both light and heavy goods vehicles to corporate clients. All logistical fleet light and heavy goods vehicles are supplied with drivers with around 500 units in operation. ASSA has 16 branch offices strategically located across Indonesia to serve client needs, manages a 24-hour help line as well as emergency road side assistance service for clients. Basic servicing and vehicle maintenance services are also provided for rental cars. The car auction business AS Lelang (JBAI) is both a physical and online auction business with 14 locations of auctions across Indonesia. The business relies on ex rental fleet, car and motorbike dealerships, finance institutions (repossessions), and other fleet car users (such as taxi companies) to supply sales stock. The auctions conducted on a periodic basis at AS Lelang (JBAI) owned locations within urban fringes of regional cities. All auctioned vehicles are subject to basic mechanical and quality assessment with information presented to the potential buyer prior to bidding. ASP is planned to be the property holding company for the land assets used for AS Lelang (JBAI) and TAB (Anteraja). Both AS Lelang (JBAI) and TAB (Anteraja) properties comprise of open areas and enclosed warehouse spaces (10,000 to 20,000m2) within former industrial sites/warehouse locations. TAB (Anteraja) the e-logistics platform supports distribution of products sold through e-sales platforms in Indonesia. TAB (Anteraja) engages couriers to collect goods, transit them to staging, collection and sorting and then re-distribution to the end consumer. The process involves networks of couriers, staging posts, staging boxes, and sorting hubs. All sorting of parcels is done at night while collection and delivery are conducted in the day time. TAB (Anteraja) also runs a 24-hour customer help chat line managed out of its headquarters in Jakarta.