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INDONESIA: Companies turn to car rental to cut costs

By just-auto.com editorial team | 22 October 2002

The Jakarta post reports that many companies have turned to rental cars for their transportation-related needs rather than purchasing new vehicles, in order to reduce costs.

The newspaper reports that the corporate policy on renting cars for business operations was a trend put in place by many companies, mostly engaged in the oil and energy business, long before the economic crisis hit Indonesia in mid-1997.

But the 1997 crisis, which left many companies in financial trouble, has led many other companies to go through restructuring, including making efforts to save operational costs by avoiding purchasing new cars and renting instead.