JAKARTA (TheInsiderStories) - PT AKR Corporindo Tbk (IDX: AKRA), Indonesian provider of supply chain and logistics solutions for petroleum and chemicals and United Kingdom’s BP, the international energy company have agreed a joint venture (JV) to develop a fuels retail business in Indonesia.
The JV agreement was signed in London on April 5, 2017 by Richard Harding, Commercial Development Vice-President, BP Downstream, and Haryanto Adikoesemo, President Director of AKR. AKR and BP will form a company PT Aneka Petroindo Raya, that will operate under the name of BP AKR Fuels Retail.
Both parties expects to open its first retail site in Indonesia in 2018. Under the exclusive agreement, the parties intend to develop and offer a differentiated consumer proposition leveraging BP’s and AKR’s capabilities and expertise across Indonesia’s growing retail market.
BP Downstream Chief Executive Officer Tufan Erginbilgic commented: “We are delighted to be working with AKR to help meet Indonesia’s growing demand for fuels and provide superior convenience offers.”
While, Haryanto Adikoesoemo adding,“Indonesia offers tremendous opportunities for retail distribution of gasoline and other products with growing demand and deregulation of the sector.”
AKR and Air BP, BP’s aviation fuels business, signed a separate joint venture agreement in November 2016 to explore investment options to support the development of the aviation industry in Indonesia, so contributing to the growth of the Indonesian economy.
AKR appointed by the Government of Indonesia to distribute subsidized petroleum. The company is a renowned provider of logistics and infrastructure with areas of operations encompassing Indonesia and China.
BP offering fuels and related convenience services to consumers at 18,000 BP-branded retail sites worldwide. BP has operations in Europe, North and South America, Australasia, Asia and Africa.
BP is one of the largest foreign investors, primarily through the major BP-operated Tangguh liquefied natural gas (LNG) project in Papua Barat. BP also has interests in the country in coalbed methane production, petrochemicals manufacturing through BP Petrochemicals Indonesia, Castrol lubricants marketing, and the Air BP-AKR Aviation joint venture.