BP to partner with AKR Corporindo in Indonesia
BP plans to open about 350 service stations and convenience stores in Indonesia with local partner AKR Corporindo over the next 10 years. AKR Corporindo will take a majority stake in the joint venture, according to CEO Haryanto Adikoesoemo. Initial plans call for setting up 14 directly managed sites under the BP brand in the second half of 2018.
AKR, a distributor of petroleum products, operates around 130 service stations in Indonesia under its own brand. Adikoesoemo said the company hopes to meld its transportation network with BP’s brand appeal and convenience store know-how.
Indonesia, with a population of about 260 million, currently only has 6,000 service stations. With a population growth of 1.49%, Indonesia’s population is projected to surpass the present population of the United States and could become the world’s third largest country after China and India by 2043.
BP is expanding its footprint in the Asia-Pacific region. The British energy giant this year acquired the service station business of Australian retailer Woolworths. The Indonesian fuel retail market is dominated by state-owned PT Pertamina. BP’s rival oil major, Royal Dutch Shell, currently operates about 80 sites in Indonesia. BP believes that combining fuel and retail will help increase its Indonesian locations’ earnings potential.