In marking this special anniversary, the 50th year of AKR, it is natural to take pride in our achievements. Today AKR has a leading position in trading and private sector distribution of fuel and bulk chemicals. We manage logistics networks in two of the modern consumer giants - Indonesia and China, yet we are just the beginning as an emerging producer of thermal coal. In all of these vital businesses there is a unifying theme: it is our recurring habit of being early to invest, alert to the advantages of change and leverage our logistic networks.
Looking forward we face new challenges - to sustain investment for growth, as our own domestic economies develop. I believe AKR is positioned to take full advantage of these interesting times for several reasons.
Our home base is the biggest economy in South East Asia, and we are strongly represented in China the fastest growth economy in the world. Since AKR was first founded, indonesia's population has grown 150 per cent. Rising domestic demand from a young and increasingly affluent consumer society and a strong commodity base has spared us from global recession and will continue to be the main determinant of future growth.
80 per cent of AKR group's overseas customers are within Asia and we see the region as a major engine for future growth. As manufacturing develops to meet regional expansion, so too will demand for fuels and strategic chemicals.
Indonesia's export of thermal coal to China has grown significantly. Indonesian coal exports has tripled over the last eight years and the increase in demand for power generation, not just in China, but across the Asian region will sustain the coal industry for decades to come. These are excellent prospects for AKR to explore.
Indonesia presents a geographical challenge of 17,000 far flung islands, there time zones and extensive seaways. The ongoing development of vast natural resources extraction industries and plantation activities place much reliance on effective efficient supply chain infrastructure. AKR has a substantial opportunity as an established leader to respond to these challenges. We think the best is yet to come.
Special mention must be made to more than 2,500 of our employees and the support of customers, business partners and shareholders. Together we have come far; there is much to celebrate and a great deal more to be accomplished in the years ahead. Without doubt our biggest challenge will be to find and harness the talent needed if we are to explore and realize value from these exciting opportunities. AKR may be 50 today, but it is still a young group in a young country possessing the spirit and enterprise associated with the new world. Who knows what we can achieve?
Mr Haryanto Adikoesoemo
President Director
PT AKR Corporindo Tbk
