Puspakom clarifies concession agreement with gov't

Puspakom has recently issued a statement clarifying its position following an announcement made by the government, whereby an open tender would be held to select service providers for inspection activities of used vehicles (hire purchase inspection or HPI) for the new term effective December 18.

In its statement, Puspakom said the inspection activities mentioned by the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) are only related to its appointment as a service provider with the ministry. The agreement, if secured, will see Puspakom continue to carry out inspections on used vehicles when they are sold prior to entering a hire purchase contract.

However, Puspakom stated that its main concession agreement with the Ministry of Transport to undertake all mandatory inspections for commercial vehicles and private vehicles will remain in effect, and will only expire in 2024.

The company will submit a proposal to KPDNHEP for the HPI concession for the new term, and believes its current inspection capacity and capability will give it an edge in securing the tender. It adds that HPI accounts for 7% of its total annual revenue, with an average of 170,000 used cars inspected yearly nationwide.

Meanwhile, the largest revenue source for Puspakom is from mandatory inspections of commercial vehicles and private vehicles, which accounts for 84% of total revenue; other services and inspections contribute 9%.

Related Cars for Sale on

Source: Read Full Article