AKR eyeing fuel sales increase through expanded storage capacity

IDX-listed fuel distributor and logistics firm AKR Corporindo expects its fuel sales to increase by 40 percent in 2008 from last year?s figure of 522,000 kiloliters.

Corporate Secretary Vembu Suresh told Petromindo.Com on Monday that the increase would be achieved as the company?s storage capacity in its key areas in Indonesia will have significant capacity increase.

Suresh said AKR is eyeing to have storage capacity of 500,000 kiloliters in 2009 with the completion of its 250,000 kiloliters storage in Tanjung Priok port, Jakarta. Currently, the company has storage capacity of 220,000 kiloliters.

AKR sells unsubsidized fuel to industrial users in Indonesia.

According to Suresh, AKR has completed storage expansion in Medan, North Sumatra from 6,000 kiloliters to 12,000 kls. AKR sells mostly HSD in North Sumatra.

The company?s Lampung storage, also in Sumatra has also increased capacity to 17.5 kiloliters from 14,000 kiloliters.

The company?s storage in Stagen in Kotabaru regency, South Kalimantan, will also have its capacity increase from 40,000 kls to 50,000 kls in October this year. The company sells mostly HSD in South Kalimantan.

AKR will also see its newest storage in Bali with capacity of 20,000 kls to start operations October this year, Suresh said.

AKR, which sell HSD, IDO and fuel oil to industrial customers, imports all its fuel from Singapore suppliers such as Chevron and Trafigura.

Suresh also said that AKR has purchased an oil tanker that is capable of transporting 1,200 tonnes of fuel to service its customers in Kalimantan. (denny)