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Business Times
06-07-2025
- Automotive
- Business Times
Bluebird's answer to Grab and Gojek? Not discounts
[JAKARTA] Bluebird, one of Indonesia's oldest taxi companies, has been around for 53 years. Today, it faces competition from tech giants like Grab and Gojek as well as emerging players like Vietnam's Xanh SM, an electric vehicle startup that operates as Green SM in Indonesia. But rather than racing to match these newer competitors on price or scale, Bluebird is sticking to delivering consistent and reliable service. 'We're not targeting every segment and we're not [entirely] premium either,' says Andre Djokosoetono, CEO of Bluebird Group, in an interview with Tech in Asia during the Asia Economic Summit in Jakarta. 'We serve the non-price-sensitive market.' Judging by Bluebird's financials, the strategy works. The company has consistently been profitable since its November 2014 IPO, aside from Covid-era blips. In 2024, it earned 592.7 billion rupiah (S$46.6 million) in net profit out of 5 trillion rupiah in net revenue. Against price wars Bluebird sees its segment as more focused on customers who prioritise consistency and service over cost. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up As players like Xanh SM enter the market with fully electric fleets and aggressive promotions, Bluebird is deliberately steering clear of competing on price. Djokosoetono says the company has 'never been tempted to do price wars.' 'You can't lower your prices and deliver a consistent quality,' he points out. Amid competition from Gojek and Grab, Xanh SM has made aggressive moves. In December 2024, the Vietnamese company revealed its plan to operate 10,000 vehicles in Indonesia by the end of 2025. In comparison, Bluebird had a fleet of 24,500 taxis as of April this year. 'We are delivering the service with certain standards of quality that require a lot of infrastructure,' says Djokosoetono, adding that the company also has to train its drivers to meet those standards. To be clear, Grab and Gojek are much bigger companies in terms of size. Grab, for instance, earned US$643 million in Indonesia revenue in FY 2024 – more than twice Bluebird's, though that amount also includes other verticals like food delivery and financial services. But matching Grab and Gojek's scale may mean compromising quality, and in turn, hurt the Bluebird brand. Plus, despite the competition, Bluebird has chosen to partner its VC-backed rivals. Its fleet is available on both Gojek and Grab – the former even acquired a 4.33 per cent stake in Bluebird back in 2020. That doesn't mean Bluebird has not had to evolve to stay competitive with Grab and Gojek. In 2015, the company rolled out the MyBluebird app, which saw more than 40 per cent year-on-year growth in usage in the first quarter of 2025. Djokosoetono reveals that the app has already been downloaded more than 1.5 million times this year. Andre Djokosoetono, CEO of Bluebird Group PHOTO: Andre's LinkedIn That digital growth is mirrored in its financials. In 2024, Bluebird reported a 14 per cent increase in revenue and a 28 per cent growth in net profit, with a margin of around 12 per cent. It aims to exceed those figures this year and is on track to do so, with Q1 revenue up 16 per cent year on year, the CEO says. Bluebird's offline services – like street-hailing – also offer it some measure of differentiation with Grab and Gojek. Customers can still book a ride through the company's call centre, with Djokosoetono pointing out that even new users avail of this option. The company says it's 'agnostic' about how rides are booked or paid for. From EVs to AI Bluebird started experimenting with EVs as early as 2019, long before most of the industry paid attention. Today, it has about 500 electric vehicles on the road. That number could grow to 1,000 by year-end, depending on whether vehicle supply and pricing align with its service standards. Bluebird is also quietly working on an autonomous driving project, though it acknowledges that Indonesia is still far from ready for mass adoption. Notably, the company believes that road conditions, not regulation, are the bigger barrier to autonomous vehicles in the country. In the meantime, Bluebird is investing in AI to improve how its fleet operates. The company uses AI to predict demand and move vehicles to passenger hotspots in advance, sometimes 15 to 30 minutes ahead. It's also using algorithms to detect and address inconsistent driving behaviour. This is important because poor driver attitude is now easily amplified online and poses greater reputational risk in the long term. In addition, Bluebird has experienced a shift in customer transactions. More than half of payments are now made through cashless methods, whether through the app, QR code scanning, or partner platforms. But the company isn't dropping cash payments anytime soon, with Djokosoetono pointing out that 'some customers still want to pay in cash.' Bluebird is open to mergers and acquisitions. It acquired intercity shuttle bus operator Cititrans in 2019, which has expanded to 10 cities in Java. Djokosoetono says another deal is in the works, though he declined to share details. 'Organic and inorganic growth are always options for us,' says the CEO. 'If we can accelerate with inorganic options, we will do it as well.' TECH IN ASIA
Business Times
26-06-2025
- Business
- Business Times
Indonesia's sovereign wealth fund looks to invest abroad, with sights set on energy assets
[JAKARTA] Indonesia's sovereign wealth fund, Daya Anagata Nusantara (Danantara), is exploring global investment opportunities as part of its strategy to strengthen the country's position in the international market. And one potential target, said its chief investment officer (CIO), is the energy sector in the United States. Speaking at the Asia Economic Summit in Jakarta on Thursday (Jun 26), Pandu Sjahrir emphasised that any overseas investment must deliver strategic value to Indonesia, particularly through technology transfer and capacity-building. 'We can invest anywhere in the world, but if it's outside Indonesia, there must be a clear strategic benefit, whether it's knowledge transfer, technology access, or strengthening Indonesia's role in the global value chain,' he said. He pointed to the energy sector as an example, noting that Indonesia still imports a significant amount of crude oil from the United States. 'So why not own a foreign oil company and buy from ourselves? That could be a strategic move to support our energy security.' Danantara manages US$900 billion in assets and oversees around 50 state-owned enterprises (SOEs) along with more than 800 subsidiaries. The sovereign wealth fund views global expansion as a key strategy for scaling up and enhancing the competitiveness of Indonesian SOEs, said Sjahrir. ' We can invest anywhere in the world, but if it's outside Indonesia, there must be a clear strategic benefit, whether it's knowledge transfer, technology access, or strengthening Indonesia's role in the global value chain. ' — Pandu Sjahrir, CIO of Danantara Its CEO, Rosan Roeslani, indicated earlier this month that Danantara planned to allocate up to 20 per cent of its capital to overseas investments, signalling a tactic to capture global assets that align with Indonesian interests. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up In a recent move reflecting this, the fund played a key role in supporting state-owned energy giant Pertamina's acquisition of a 20 per cent stake in Citicore Renewable Energy Corporation, a Philippine renewable energy company, in a transaction valued at US$120 million. Sjahrir described it as a strategic investment for Pertamina to strengthen its presence in the global oil sector. More global talent During the panel, the CIO noted that while Danantara continued to prioritise domestic investments, it also recognised the importance of international opportunities to achieve long-term goals – particularly amid increasing global competition for talent and advanced technologies. 'This is also about human capital development. One of our top priorities is to boost productivity per capita, and that's not possible without knowledge transfer from abroad,' he added. Danantara has already begun hiring international talent for key positions within the organisation. This move, Sjahrir said, is aimed at accelerating capacity-building and improving the operational efficiency of the companies under its management. Recently, the fund invited Sunata Tjiterosampurno, managing director and co-CIO at Northstar Group – which is a private equity firm and early backer of Gojek – to join. The fund also plans to recruit foreign talent to support its flagship airline, Garuda Indonesia, to which it recently extended a US$405 million capital loan. 'We now have a double-digit number of foreign talents working within Danantara. Depending on their roles, they contribute valuable expertise and help with knowledge transfer,' Sjahrir said.
