Land transportation issuers: Driving innovation amid competition
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Emiten transportasi darat: Pacu inovasi di tengah kompetisi
12 February 2025
By Fahmi Ahmad Burhan
The presence of Xanh SM, which uses electric cars, is invigorating the taxi company PT Blue Bird Tbk (BIRD). The intense competition is driving BIRD to enhance innovation to strengthen its position in the domestic market.
The opportunity to increase BIRD's share price resurfaces amid recent challenges and competition. The company's ability to face competition has sparked a positive performance in its share price on the stock market.
As the new competitor arrive, BIRD immediately took a stance. Blue Bird President Director Adrianto Djokosoetono stated that the presence of new players in the domestic taxi market is normal and reflects a healthy industry dynamic.
“For Blue Bird, competition is an opportunity to innovate and strengthen our position as a mobility service provider that is comfortable and relevant to the people,” Andre said recently.
Xanh SM officially launched in Indonesia on 18 December 2024, serving Central Jakarta and South Jakarta with VinFast electric cars.
Xanh SM was established in 2023 with 100,000 units of electric vehicles, including electric cars, electric motorcycles, and units managed by its partner company in Vietnam.
All services of Xanh SM use VinFast electric cars. The company has successfully expanded its operations to 54 out of 63 provinces and cities in Vietnam.
Regarding the use of electric cars, Andre revealed that Blue Bird has operated more than 300 units of electric cars in Jakarta, Semarang, Bali, Balikpapan, and Medan.
“The electric vehicle fleet supports our various services, such as e-Bluebird, e-Goldenbird, and the Bus Rapid Transit (BRT),” he explained.
In detail, Blue Bird uses various electric vehicles for each of their services. For instance, BYD E6 and Hyundai Kona for e-Bluebird, and Hyundai Ioniq 6, BYD M6, Genesis G80, and BMW iX for e-Goldenbird.
With the increasing options of electric car models in Indonesia, he stated that the company is optimistic about accelerating EV adoption exponentially.
“This opens a major opportunity for faster growth each year and strengthens Blue Bird’s commitment to providing sustainable and comfortable mobility services for customers,” Andre stated.
Moreover, BIRD is also planning to add 1,000 more electric cars throughout 2025 to accelerate the transition towards low-emission transportation.
Blue Bird Chief Strategy Officer Andrew Arristianto said that public demand for sustainable transportation will continue to grow. BIRD will introduce an EV ordering feature on its MyBluebird application.
“This innovation is supported by the plan to increase the company’s EV fleet by 1,000 units to accelerate the transition towards low-emission transportation,” Andrew said to a reporter on Thursday (6/2).
However, he did not mention the capital expenditure allocated for procuring the 1,000 electric vehicles.
On the other hand, BIRD’s share price was sluggish last year. BIRD’s share price declined by 5.72% throughout 2024.
Throughout trading yesterday, BIRD’s share price decreased by 1.55% to Rp1,585 per share. This reflects a decrease of 3.65% over the last six months.
“The entry of Xanh SM into the Indonesian market will add another competitor for BIRD. Xanh SM offers taxi and ride-hailing services with various advantages, such as a modern and eco-friendly fleet and competitive pricing,” Kiwoom Sekuritas Indonesia Head of Equity Research Sukarno Alatas told Bisnis on Monday (10/2).
Sukarno added that BIRD also faces the challenge of regulatory changes in the market and unstable economic conditions.
Transportation prospect
However, according to him, the opportunity to improve BIRD’s share performance in 2025 still exists.
“BIRD has several advantages that its competitor does not. BIRD is an established player in the Indonesian market with an excellent reputation and an expansive network,” Sukarno stated.
Besides that, BIRD has the opportunity to capitalise on market growth and develop technology to enhance its performance.
Blue Bird’s financial performance remains strong. Up until the third quarter of 2024, BIRD recorded a profit attributed to the parent entity of Rp436.3 billion, marking a 21.06% year-on-year (YoY) increase.
BIRD’s profit increased in line with its revenue, which rose by 13.45% YoY to Rp3.66 trillion during the period.
In line with its strong financial performance, BIRD has the opportunity to distribute dividends to its shareholders this year. Reflecting on last year, BIRD distributed Rp227.69 billion in dividends, which was 50.27% of its total net profit of Rp452.97 billion.
Buana Capital Analyst Dennis Tay, in his recent research, also reckons that the new competition, Xanh SM, could be a hindrance for BIRD despite its excellent operational performance.
Other challenges for BIRD’s shares in the future include slower-than-expected profit growth in 2025, higher fuel costs, and increased competition.
However, Buana Capital continues to recommend buying BIRD's shares, in line with its forecast of stable financial performance growth. BIRD's shares are projected to reach Rp2,530 per share.
On a separate occasion, Mirae Asset Sekuritas Senior Market Chartist Nafan Aji Gusta stated that several sentiments affect the stock prices of land transportation issuers, such as BIRD. One of these sentiments is the dynamics of fuel prices.
"Another sentiment is the mobility of goods and service users. The regional economy currently shows positive performance. The transportation sector is also important for interregional connectivity," Nafan stated.
Based on Bloomberg's data, the analyst consensus shows that eight securities recommend buying BIRD's shares. BIRD's target price is set at Rp2,337 per share for the next 12 months.
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