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The Ministry of ESDM allows AKR Corporindo to sell avtur

29 March 2019 08:48 AM  Company: PT. AKR Corporindo Tbk[AKRA]
Rp. 3,940  -20 (-0.51%)

JAKARTA. The Ministry of Energy and Mineral Resources (ESDM) gave permission to PT AKR Corporindo Tbk (AKRA) to sell avtur (jet fuel) in Indonesia this year.

Director of Downstream Oil and Gas Business Development of the Ministry of ESDM, Muhammad Rizwi Jilanisaf Hisjam, said that the government had given temporary permission to AKR.

"Only one BU (business entity) and it is still a temporary business license, on behalf of PT Dirgantara Petroindo Raya, BP-AKR's cooperation, the business plan is at the airport in Morowalu, Central Sulawesi," Rizwi explained as quoted by Kontan.co.id on Thursday ( 28/3).

But Rizwi did not mention the validity period of the temporary permit for this AKRA-coded company. Rizwi only said that avtur sales by BP-AKR have not started yet. "It is still in the stage of preparing or building its trading facilities. It is not yet operational," Rizwi added.

AKR-BP will target the market in Eastern Indonesia, because the avtur business opportunities in Eastern Indonesia are still quite large. In addition, AKR-BP already has infrastructure such as storage tanks and vessels for transportation in eastern Indonesia.

The entry of AKR into the avtur business is one of its strategies to increase revenues, especially from the fuel trading and distribution business. Moreover, this year AKR targets its revenue to grow by 15% from the realization in 2018 (Rp. 23.55 trillion).

Last year, AKR's financial performance was indeed quite good. AKR posted revenue growth of 28.76%, and its profit rose by 33.33% to Rp 1.64 trillion. (AM/AR)

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PT. AKR Corporindo Tbk [AKRA]   Rp. 3,940   -20 (-0.51%)