AKR Corporindo Entered Power Plant and other Energy Supporting Businesses - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – Multinational company, PT AKR Corporindo Tbk (AKRA) plan to enter power business as part of its diversification business, said the director on Tuesday (08/27). Currently the producer has talked with the potential investors to realize the project.

“We plan to build a 300-500 megawatts (MW) gas-fired power plant with an investment of approximately US$ 400 million. We will cooperate with domestic strategic partners,” Suresh Vembu, director at AKR Corporindo told reporters yesterday by adding the plant will complete in three years time.

Beside, power plant, through its unit PT Anugerah Lubrindo Raya where AKR Corporindo owned the majority stakes planned to expand the products by acquired a local lubricants company. Currently the company distributed the product to industry sector and aimed to expand the products to marine and shipping sectors.

For retail business, joined with BP Indonesia, the company has opened 10 fuel station and planned to open 20 gas stations in this year. He stated, “Every year we will open 35-40 gas stations. We prepare an investment around $40 million per year.”

All costs for the projects come from internal cash and bank loans. Recently, AKRA has got bank loans $40 million and looking other instrument to finance the projects, said Vembu.

For avtur product, he continued, the company have launched one outlet in Morowali, Central Sulawesi and plan to open other stores in several airports in Eastern Indonesia. “Next year we will enter Java, Sumatra, Bali,” said the director.

Together with PT Pelabuhan Indonesia III (Pelindo III) has built the Java Integrated Industrial and Port Estate (JIIPE) in Gresik, East Java. The 3,000 hectare project will be built in three stages since 2013. In the first phase has been realized in 2018, the project has absorbed funds around Rp5 trillion. 

AKRA is now preparing for the second phase of development to be carried out throughout 2019 until 2022 in the areas 265 hectares of land. Vembu expect the new business provide recurring income for AKRA by 20 percent on a consolidated basis.

To date, the planned opening of the JIIPE Industrial Area have multipurpose clusters covering 45 hectares and clean blocks of 80 hectares for food and pharmaceuticals. Then the 60 hectare liquid material cluster is for the CPO and liquid chemical refining industry.

Then the 100 hectare smelter cluster and multipurpose II cluster.
AKRA will also build a port area on 400 hectares of land and a housing area of ​​800 hectares.

The construction of direct access that connects the Krian-Legundi-Bunder Manyar toll road to the JIIPE entrance gate will further facilitate transportation. In terms of infrastructure facilities, JIIPE is equipped with a seaport with 76-year concessions, power plants up to 500 MW, water treatment facilities and sewage treatment facilities. JIIPE is also equipped with gas and fiber optic pipelines.

AKR Corporindo  was founded as a small chemical trading business over 55 years ago in Surabaya, and it has now grown to become one of the largest private sector distributors of basic chemicals, petroleum, logistics, and supply chain solutions.

Soegiarto Adikoesoemo, entrepreneur and businessman from Surabaya, started this business in 1960 and later established PT Aneka Kimia Raya on Nov. 28, 1977 before moved its headquarters to Jakarta in 1985.

In 1994, the company opened a new chapter in its business development by becoming a public listed company on Indonesian Stock Exchange. This chance was used to further develop the company’ infrastructure and to build new storage terminals, as well as other assets in Java and Sumatra.

In 2005, the company became the first national private company to distribute non- subsidized fuel. AKR continued expanding its network and now has storage tanks and terminals in 10 major sea ports and river ports throughout Indonesia.

AKR Corporindo also owns a fleet of self-propelled oil barges, petroleum, and chemical trucks delivering petroleum and basic chemicals to over 2,000 industrial companies across Indonesia.

For subsidized fuel, in 2017, the company was reappointed to distribute subsidized petroleum for motor vehicles and fisheries. AKR Corporindo currently operates 135 AKR brand petrol stations in Java, Sumatra, Kalimantan and Sulawesi.

In 2011, AKR Corporindo along with its joint venture partner, Royal Vopak, commissioned the largest independent petroleum storage terminal, PT Jakarta Tank Terminal (JTT) in Tanjung Priok Port. JTT provides modern and efficient terminal facilities for International oil majors and Indonesian corporates alike.

US$1: Rp14,200

by Linda Silaen, Email: linda.silaen@theinsiderstories.com