JAKARTA (RambuEnergy.com) – As the jet fuel market is currently monopolized by the state-owned energy company PT Pertamina, new player the joint-venture entity BP and PT AKR Corporindo Tbk (IDX:AKRA) has expressed its interest to enter the jet fuel distribution market.
At present, only Pertamina that has the facilities in the country’s airports to load jet fuel on the aircraft. President Joko Widodo has earlier hinted at opening the jet fuel distribution market to push down jet fuel price, which is considered to be relatively higher compared to other Asian markets.
The high jet fuel prices has been blamed for higher airline tickets that have dampened the flow of people and goods through air transportation.
“We are ready to set up the business (jet fuel distribution) with BP. It is being prepared. We will focus on airports in eastern Indonesian region,” Haryanto Adikoesoemo, president director of AKR was quoted by CNBCIndonesia as saying on Wednesday (Feb. 13).
In order to enter the business, the company together with its partner will build the required infrastructure. He believes that there is still room for growth given the double-digit growth of the airline passengers in the country.
“We opt to enter the region as there are many new airports, therefore we can invest in (fuel distribution) infrastructure as well,” he said.
“There is still room for new players and volume to grow higher,” he said.
AKR, a leading Indonesian provider of supply chain and logistics solutions for petroleum and chemicals, and BP of UK have reached an agreement in April 2017 to set up a joint venture to develop a fuels retail business in Indonesia.
The establishment of the joint venture was a follow-up of agreement between the two parties in November 2016.
The JV firm, called PT Aneka Petroindo Raya, will operate under the name of BP AKR Fuels Retail. Under the exclusive agreement, the parties intended to develop and offered a differentiated consumer proposition leveraging BP’s and AKR’s capabilities and expertise across Indonesia’s growing retail market. (*)
Written by Roffie Kurniawan (Email: email@example.com)