Air BP, the international aviation fuel products and services supplier, and AKR, an Indonesian distributor of chemicals, petroleum, logistics and supply chain solutions, have today announced the signing of a joint venture agreement. The agreement was signed in London by Mr Jonathan Wood, Chief Strategy and Business Development Officer, Air BP, and Mr Haryanto Adikoesoemo, President Director of AKR.
The joint venture company, PT Dirgantara PetroIndo Raya, will operate under the name of Air BP-AKR Aviation with the remit to develop an aviation fuel business in Indonesia.
Indonesia is one of the world's fastest growing aviation markets where domestic travel is projected to grow by an average of 15% per year, reaching 180 million passengers in 2021. The market is being driven by the strong economy with a growing middle class, an archipelago geography and increased tourism. Indonesia is now the world's fifth largest domestic market, behind only the US, China, Japan and Brazil.
Air BP and AKR see huge potential within the Indonesian aviation fuel sector. The joint venture intends to support the development of Indonesia's aviation industry and contribute to the growth of its economy by investing in infrastructure, applying the latest innovative technology and operational best practices for the supply of aviation fuel.
"Air BP sees a great future for aviation in Indonesia and is pleased to be involved in this market and contribute to its future development and success. Over time, Air BP and AKR aim to build a strong, sustainable and material business in Indonesia, drawing upon Air BP's global expertise combined with the skills and knowledge of AKR - a strong local partner," said Mr Jonathan Wood.
"We are delighted that we have signed the joint venture agreement with Air BP. Air BP brings global expertise in all areas of aviation fuelling which matches AKR's expertise in providing fuel logistics, supply chain solutions and infrastructure across Indonesia. The joint venture will help meet Indonesia's growing demand for aviation fuel. We look forward to working together for mutual success," said Mr Haryanto Adikoesoemo.
Air BP leads or participates in over 150 joint ventures around the globe from the Arctic to the Middle East. This new joint venture further demonstrates Air BP's commitment to support aviation growth in developing markets. It also demonstrates bp’s continued commitment and investment in Indonesia.
About bp in Indonesia
About PT AKR Corporindo Tbk:
PT AKR Corporindo Tbk was formally established in 1977 and was listed on the Indonesian Stock Exchange in 1994. The company is Indonesia's leading integrated supply chain solutions provider and largest private sector distributor of petroleum and basic chemicals. The company is also the first private company appointed by the Indonesian government to distribute subsidized petroleum. The Company is a renowned provider of logistics and infrastructure with areas of operations encompassing Indonesia and China. Through a number of subsidiaries it governs, the company also operates in the areas of logistic services, manufacturing, supply chain and distribution and trading.
In order to utilize the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995 (the 'PSLRA'), bp is providing the following cautionary statement. This press release contains certain forward-looking statements concerning the Tangguh Expansion Project in the Papua Barat Province of Indonesia, including plans and expectations regarding future production capacity, facilities and infrastructure and bp's commitment to work with the Government of Indonesia to meet its energy needs; plans and expectations regarding the Tangguh Expansion Project's role in supporting Indonesia's energy demand and sales to the state electricity company; and plans and expectations regarding future contract awards and the effect of the Tangguh Expansion Project on economic growth and employment in Indonesia and the Papua Barat Province and the timing thereof. Actual results may differ from those expressed in such statements, depending on a variety of factors including changes in public expectations and other changes to business conditions; the timing, quantum and nature of divestments; the receipt of relevant third-party and/or regulatory approvals; future levels of industry product supply; demand and pricing; OPEC quota restrictions; PSA effects; operational problems; regulatory or legal actions; economic and financial conditions generally or in various countries and regions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; exchange rate fluctuations; development and use of new technology; the success or otherwise of partnering; the actions of competitors, trading partners and others; natural disasters and adverse weather conditions; changes in public expectations and other changes to business conditions; wars and acts of terrorism, cyber-attacks or sabotage; and other factors discussed under "Risk factors" in our Annual Report and Form 20-F 2015.
- ENDS -