AKR sees 2009 fuel sales increase by 70%

IDX-listed fuel distributor and logistics firm AKR Corporindo expects its fuel sales to increase by 70 percent next year as the company expands distribution reach and increases fuel storage capacity.

CEO Haryanto Adikoesoemo said on Tuesday that the company is projecting fuel sales of 1.2 million kiloliters next year as opposed to 700,000 kiloliters this year. He said the increase would be achieved as the company?s storage capacity in key areas in Indonesia will have significant capacity increase.

Haryanto said that the company?s fuel storage capacity will double to 500,000 kiloliters in 2009 and to further increase to 750,000 kiloliters in 2010-11.

The company now has fuel storages in North Sumatra, Lampung, Jakarta and South Kalimantan.

Haryanto said new storage with capacity of 20,000 kiloliters will start operations in Bali in February. Another new storage in Tanjung Priok, Jakarta, which the company builds in JV with Dutch liquid storage firm Royal Vopak, will start operations in October 2009, he added. The Tanjung Priok facility will have storage capacity of 250,000 kiloliters in the first stage.

AKR sells unsubsidized HSD, IDO and fuel oil to industrial users in Indonesia.

AKR imports all its fuel from Singapore suppliers such as Chevron and Trafigura.(denny)