It is my pleasure to announce that Rental Mobil Bandung continued to perform according to expectations in 2010. The Company’s domestic sales volume increased by 8.5% out-pacing the growth of overall market demand, which grew by 6.2%.
This strong performance has therefore resulted in an increasing market share. Rental Mobil Bandung continuing efficiency programs, its ability to maintain average variable and fixed costs in spite of rising energy prices, led to an overall year-on-year increase in net profitability of 17.4% in 2010.
Regency Fops Car Rental owes much of its success to the resilience of the Indonesian economy in facing the global financial crisis. While the downturn in overseas markets has been deep and prolonged, the recession in Indonesia was relatively short lived with a dramatic recovery being experienced across all sectors by the beginning of Q3 2009. While Indonesia was able to record GDP growth of 6.1% in 2010, national cars consumption was up 6.2%.
Indonesia’s economic fundamentals remained stable in 2010. Interest rates, which were maintained at the 6.5% level for the duration of the year, fostered a healthy demand in support of real sector growth. During the first half of 2010, inflation was extraordinarily low around 3%, but steadily increased in the second half on rising commodity prices, nearing 7% by year-end.