AKR is the leading distributor of energy products, including refined petroleum products in Indonesia. Since the deregulation of petroleum distribution by the Government in 2005 (Regulation No. 22 of 2001 on Oil and Natural gas) the company was the first private company appointed to distribute non-subsidized fuels. By using its strong infrastructure in ports and logistics, AKR distributes high speed diesel, marine fuel oil and industrial diesel oil to companies in the mining, power generation and bunker industries. The Company believes that the Indonesian Government is in the process of opening distribution of the subsidized fuel sector to private companies and in 2009, AKR awarded the right to distribute subsidized petroleum in Indonesia for 2010 period, furthermore in 2010, once again AKR awarded the right to distribute subsidized petroleum for 2011 period.
The growth potential in this industry is very high, the company and its subsidiary own wide infrastructure networks around major location in Indonesia, which become one of the competitive advantages compare to other players. Strong infrastructure allows AKR to distribute petroleum products into any region, even to the remote area in Indonesia.
In order to maintain the quality of the fuel that it distributes, the Company imports fuel from oil majors and international oil traders, particularly from Singapore and Taiwan.
