There are many inspiring success story of local Indonesian entrepreneurs, one of which is PT Naikilah Perusahaan Minang (abbreviated as NPM). NPM is a land passenger transportation bus company originating from Padang Panjang City, West Sumatra. NPM is the oldest bus company in Indonesia that is still operating today. The bus company was founded on November 1, 1937 by Bahauddin Sutan Barbangso Nan Kuniang.
The success story of this NPM entrepreneur began when Bahauddin, a transportation entrepreneur who operated bendis, decided to establish a bus rental company until 1948. Only then did NPM open inter-city bus services in West Sumatra. The company is now managed by the third generation, Angga Vircansa Chairul.
The Early Days of NPM
The success story of NPM began as a bus rental company that served several intercity routes within the province of West Sumatra. A few decades later, it expanded by opening routes to various cities on the island of Sumatra. In the 1980s, NPM began running routes to Java. From West Sumatra, NPM began departures to various departments on the island of Java from several cities, such as Padang, Bukittinggi, Pariaman, Payakumbuh, and others.
In the 1980s to early 2000s, NPM’s route network stretched from Medan, Pekanbaru, Dumai, Jambi, Bengkulu, Palembang, and Bandar Lampung on the island of Sumatra, to Jakarta, Bogor, Depok, Bekasi, and Bandung on the island of Java. NPM also serves the main route in West Sumatra, namely Padang-Bukit Tinggi.
Economic Crisis and Price Competition
In every story of inspiring entrepreneurs, there are difficult conditions that must be faced. Not infrequently, these conditions almost make these great entrepreneurs go bankrupt. This was the case with NPM.
In 1998, Indonesia was hit by an economic crisis. This crisis also had an impact on NPM. Quoting merdeka.com, NPM was willing to reduce the number of buses. As a result, only 40 buses remained at that time. Not only that, NPM then also had to compete with low-cost airlines. The ease of obtaining private vehicles through credit payments and the rise of travel transportation companies that use minibuses also hit the company.
To get out of this difficulty, Angga Vircansa Chairul expanded the business by opening a tourism transportation called Vircansa Tour Bus that operates in West Sumatra and its surroundings.
Success Story of NPM Entrepreneurs Facing the Covid Pandemic
The Covid-19 pandemic has once again hit almost all industries. Tourism and transportation are among the hardest hit. According to Angga, as quoted by kompas.com, the pandemic has reduced bus ticket sales by 40 percent in 2020. Therefore, management inevitably dealt with the weakening conditions by combining 50 percent of passenger services with cargo on a number of its passenger bus fleets.
Unfortunately, this effort did not have much impact. Finally, management decided to work with Traveloka, an online-based travel agent company with various modes of transportation and accommodation. This collaboration turned out to have a positive impact on NPM. The adoption of technology allows NPM to change the manual issuance system to auto issuance, which certainly increases the effectiveness of customer service.
Lessons from the NPM Story
As a company that has survived since before independence, NPM is an success story of a successful entrepreneur. A company that is able to survive for a long time means that it has gone through many times and challenges. Like any other industry, the transportation industry is not immune to change. Competitors come and go. Technology can shake up the establishment. The tastes of transportation users also change.
NPM is a family business that is able to survive until the third generation. In fact, many family businesses fall after the first generation is gone. What does this mean? This kind of family enterprise successfully combines vision and innovation. But in the case of NPM, the changes don’t seem to be made aggressively, but gradually. For example, in digitalization and expansion.
economic crisis
NPM’s heyday was in the 1980s and early 2000s when their routes stretched from Sumatra to Java. This triumph began to be disrupted by the 1998 economic crisis, the emergence of low-cost airlines, easy credit for private vehicles, and the rise of minibus travel. This left people with more options for intercity and inter-island transportation.
The reduction in the number of buses due to the 1998 economic crisis is to be expected. However, this also indicates that the company was not aggressive enough in diversifying its business. Presumably, the company was a little complacent about the success of one of its products, so it was too late to do so. At the same time, a number of other transportation companies began to venture into the logistics or freight transportation business. NPM then ventured into tourism transportation with Vircansa Tour Bus, a diversification move.
Covid-19 pandemic
The next test was the Covid-19 pandemic. The decision to combine passenger and cargo services had little impact. It seems that the company needs to focus on strategic transformation that has a long impact, not just short-term strategies. It was only when it partnered with Traveloka that NPM experienced a turning point. NPM transformed to welcome the digital era. NPM began to adopt the latest operating system by using technology such as auto issuance. Today, the world is increasingly digitized. Companies must quickly innovate. Otherwise, it will experience stagnation, even degradation.
Conclusion of Success Story of NPM Entrepreneurs
The success story of the NPM entrepreneur above provides insight that the company’s ability to survive the attack of changing times is indeed good. But like a football game, good defence is not enough. To win, a team must score goals. Goals are generated through well-thought-out attacks.
If it continues to thrive, NPM can develop its own app or expand its digital services. This makes it easier for potential passengers to make bookings. In addition, it needs to consider diversification and improving the customer experience.
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