JAKARTA (RambuEnergy.com) – After setting up alliance with a US company, Air BP, a subsidiary of UK’s oil and gas giant company BP has now signed an agreement to set up a joint venture with Indonesian company AKR Corporindo (IDX:AKRA) to develop jet fuel.
The JV firm, called PT Dirgantara PetroIndo Raya, will operate under the name BP-AKR Aviation. AKR holds 50.1% stakes in the JV firm, while Air BP holds 49.9%.
The agreement was signed in London by Jonathan Wood, Chief Strategy and Business Development Officer, Air BP, and Haryanto Adikoesoemo, President Director of AKR.
Chief Strategy and Business Development Officer Air BP Jonathan Wood said BP and AKR see a huge business potentiality to develop aviation jet fuel. BP will brin in its innovative technology.
Jonathan said both Air BP, the international aviation fuel products and services supplier, and AKR will form a solid sustainable business venture in Indonesia, given each companies strenght.
Indonesia is one of the world’s fastest growing aviation markets where domestic travel is projected to grow by an average of 15% per year, reaching 180 million passengers in 2021. The market is being driven by the strong economy with a growing middle class, an archipelago geography and increased tourism. Indonesia is now the world’s fifth largest domestic market, behind only the US, China, Japan and Brazil.
“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,” said Wood. (*)