AKRA establishes JV company for Natural Gas Distribution Business in JIIPE SEZ

August 05, 2021/POSTED BY /0 Comments

JAKARTA, August 4, 2021 – PT AKR Corporindo Tbk (IDX ticker code: AKRA.IJ) and PT Bayu Buana Gemilang (BBG) have signed an agreement to establish a joint venture company PT Berkah Buana Energi for the distribution of natural gas. PT Berkah Buana Energi (BBE) will undertake the construction, management and  development of network of gas distribution through pipes from the  source location to the customers; initially the JV Company will focus on developing business in the SEZ JIIPE, Gresik, East Java to service requirements of  industrial tenants in JIIPE. AKR will hold 65% of the shareholdings in BBE while BBG will control 35%.

Today’s signing ceremony was held online and attended by representatives of the top management of AKRA, JIIPE, and BBG.

President Director of AKRA, Mr. Haryanto Adikoesoemo & President Director of BBG, Bpk. Andi Rachman signed an agreement to establish a JV company for natural gas distribution

AKRA President Director Mr. Haryanto Adikoesoemo explained the objectives and goals of the joint venture at the signing ceremony; “AKR and BBG will work together to distribute affordable energy for industrial customers in JIIPE. Natural gas is one of the cleanest, with low carbon intensity, the safest and the most useful of all energy sources.”

“ PT Berkah Buana Energi, is part of AKR’s  growth strategy of adding cleaner fuels and renewables to our product portfolio. AKR has been a major distributor of Petroleum products, basic chemicals to Industrial customers and we are extremely happy to partner with BBG to grow our product portfolio ” said Mr Haryanto

AKRA is  one of the largest private sector company in distribution of Petroleum and basic Chemical products in  Indonesia with network of logistics and supply chain facilities across the Indonesian Archipelago.   Jointly with Pelindo III, AKRA is developing JIIPE, which has recently been designated as Special Economic Zone status by President of Republic on Indonesia; JIIPE provides efficient utilities in one of Indonesia’s largest integrated industrial and Port estate including Power plants, gas distribution, data, water, waste water and other services.

BBG is the leading private sector company in Indonesia engaged in the trading and distribution of natural gas.  It has established a gas pipe network in East Jawa, West Jawa and East Kalimantan and  distributes natural gas via land pipes, trucks and other land based facilities through the application of various available technology such as CNG, NGV and gas fired power plants.

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