Taxi Business Model in Indonesia

The business model follows an “ownership – partnership” model where the driver “owns the car”  by paying a 6 year installment to the company

The car is typically a Toyota Limo (the taxi brand for Toyota Vios, which lowest version retail at IDR 212 million. The Limo version should come in cheaper)

Taxi driver pays:

–          Down payment for car at IDR 5 million

–          Daily installment payment at IDR 200 k, for 6 year, this amounted to IDR 438 million

–          Daily admin and services fee at IDR 30 k (Car wash, etc)

–          Perishables like oil, tires, braked pads (sold by company at double market priced, driver take a loan from the company, loan is paid daily)

–          Spareparts (same practice)

This is a rente business model almost as good as it gets. Perhaps the only thing more rente is financial based rents (taxes, transfer or remittance fees, banking account admin fees, payment fees, escrow fees)

The taxi company is in effect an expensive middlemen between suppliers (car company, spare part producers, etc) and the driver, abusing the driver’s lack of capital (to buy car at market financing rate, to buy car parts at market price) to force driver to buy overprice supplies from the company.

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By ceding your ego, you become the predator.

This thought pattern emerge after the most unexpected mingling of two events: Discussion about ego and watching both “Extreme Hollywood” and “Fashion Police” in E! channel.

One of my vendor, a businessman with much more maturity and experience than I am, had explained to me that quite possibly, the persistent problem I have with a colleague at work stems from my failure to stroke his ego. I silently agree that this failure came from my inability to cede my own ego.

In my insecure need to feel important, to be regarded as important, I have not been willing to cede my own ego when in contact with this particular colleague.

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Great Migration – Genes Making the World Tick

I was watching the Great Migration series on National Geographic Channel.

The episode was born.

It was about how 4 species (whales, monarch butterfly, crabs, ?antelope?) make the journey to which they deliver their offsprings.

I watch their  4 species meet their death to search for water, dance to the moon to deliver their babies, meet at a specific location somewhere it damn vast ocean. I marvel at not only that they move, but the reason for why they move.

Then it dawn to me, why, just why did these  species make their journey.

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How Does It Add Up

When people think about E = MC2, they tend to focus on the energy side of the equation, how much energy a tiny winy amount of mass would unleashed. But here we will try to look at it from the mass side of the equation.


Let’s take a 20 year male, his height is 180 cm (5” 11’) and weight 98 kilograms (216 pounds). More than 20 years ago, this male didn’t exist.

In physics term, his weight of 98 kilograms, 21 years ago didn’t exist.

Now, we have a mass, that 21 years ago didn’t exist. The mass is not 98 kilograms, mind you, 98 kilograms is the weight of the man on Earth, which has a gravity constant of 9.8. To add to the caveat, the actual measurement of weight is actually Newton, not Kilogram.

The amount of this mass is 98 Newtons divided by 9.8 N/Kg, which is 10 Kilogram.

Since this male didn’t exist 21 years ago, his mass of 10 Kg also didn’t exist 21 years ago.

Think about it, 21 years ago, nothing; today, a 10 Kg of mass. 

In the span of 20 years, this mass of 10 Kg has been created. According to Einstein equation, for this male to exist, his mother and his body need to gather energy of 10 x 300,000,000 x 300,000,000 = 9 x 1017 Joules. That’s nine hundred thousand trillion Joules.

How much is 1 Joule?

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