Air BP, the international aviation fuel products and services supplier, and PT AKR Corporindo Tbk, an Indonesian distributor of chemicals, petroleum, logistics and supply chain solutions, have announced the signing of a joint venture agreement. The agreement was signed in London by Jonathan Wood, chief strategy and business development officer, Air BP, and 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 purpose of developing 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 U.S., 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," Wood said.
“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 Adikoesoemo.
Air BP leads or participates in more than 150 joint ventures around the globe from the Arctic to the Middle East. This new joint venture demonstrates Air BP’s commitment to support aviation growth in developing markets. It also demonstrates BP’s continued commitment and investment in Indonesia, the company said in a statement.
PT AKR Corporindo Tbk, which is listed on the Indonesian Stock Exchange, is Indonesia’s leading integrated supply chain solutions provider and largest private sector distributor of petroleum and basic chemicals. PT AKR Corporindo Tbk is also the first private company appointed by the Indonesian government to distribute subsidized petroleum. Through a number of subsidiaries it governs, PT AKR Corporindo Tbk, also operates in the areas of logistic services, manufacturing, supply chain and distribution and trading.