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Jakarta Post

BP, AKR joint venture company to enter Indonesian avtur market

  • Stefanno Reinard Sulaiman

    The Jakarta Post

Jakarta   /   Fri, February 15, 2019   /   08:16 am
BP, AKR joint venture company to enter Indonesian avtur market A Garuda Indonesia plane refuels at Lombok International Airport in West Nusa Tenggara. (JP/File)

Amid a call by President Joko “Jokowi” Widodo to lower aviation fuel (avtur) prices, publicly listed fuel trader PT AKR Corporindo and British energy firm BP reiterated a plan to enter the country’s jet fuel market.

PT AKR Corporindo president director Haryanto Adikoesomo said a joint venture company had been established and was in the process of implementing the plan.

"We have signed the joint venture [agreement] and are currently in the process [of entering the market]," he said on the sidelines of a media conference on the launch of BP-AKR fuel stations.

Jokowi previously said state-owned oil and gas holding company Pertamina, the sole supplier of avtur to Soekarno-Hatta International Airport, would be given two options in lowering avtur prices. The first option was to be instructed to lower prices and the other was the government allowing new players to supply avtur.

Pertamina's avtur prices have been blamed for the high operational costs of domestic airlines. (bbn)