AKR, Air BP sign JV agreement for aviation fuel supplies

Air BP division of BP Plc and IDX-listed fuel distribution firm PT AKR Corporindo TBK signed on Tuesday a joint venture agreement for developing aviation fuel business in Indonesia.

The agreement was signed in London by Jonathan Wood, Chief Strategy and Business Development Officer, Air BP, and Haryanto Adikoesoemo, President Director of AKR, according to a joint press statement obtained Wednesday.

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.

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 Wood in the statement.

?We are delighted that we have signed the joint venture agreement with Air BP. Air BP brings global expertise in all areas of aviation fueling 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 Haryanto.

Air BP leads or participates in over 150 joint ventures around the globe from the Arctic to the Middle East.

Editing by Reiner Simanjuntak