AKRA establishes JV for coal hauling roads in Central Kalimantan

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AKRA establishes JV for coal hauling roads in Central Kalimantan

Jakarta, May 11, 2011 - PT AKR Corporindo Tbk (Bloomberg: AKRA IJ), announced today that it has established a JV for building coal hauling roads in Central Kalimantan. AKRA’s subsidiary PT Anugrah Karya Raya, engages in coal business, established PT Berkah Rukun Bersama a 50:50 JV with PT Austral Byna holder of forestry concessions in North Barito District, Central Kalimantan.

PT Berkah Rukun Bersama will build, upgrade and operate coal-hauling roads which will not only support AKRA coal mining operation in North Barito District, Central Kalimantan but also will provide coal-hauling facilities for the surrounding coal mines. Establishment of the JV is part of AKRA’s strategy to expand its logistics infrastructure to serve the energy related business.

AKRA has already commenced construction of coal terminal at Buntok Baru Port, on the banks of Barito River, Central Kalimantan which will serve as the transshipment point for coal in Central Kalimantan.

Mr Haryanto Adikoesoemo, President Director, PT AKR Corporindo Tbk., commented, “Development of crucial infrastructure such as Hauling roads, Coal terminals and other infrastructure is a key part of our strategy to expand AKR’s energy distribution and logistics business. With the establishment of this coal-hauling subsidiary and on receipt of all necessary permits and licenses to operate our coal concessions, AKRA is ready to commence mining activities from its coal concessions in the coming weeks.

“An integrated coal logistics infrastructure is a very critical asset to be successful in the coal business in Kalimantan”, Mr Haryanto Adikoesoemo said. “In addition to serving AKRA’s concessions, we will also provide much needed infrastructure to other coal concessions in the area and also look for synergies in the other business of AKR such as petroleum distribution”

AKRA which is the largest Private sector distributor of refined Petroleum and basic chemicals in Indonesia also operates an extensive network of logistics facilities in Indonesia and in China. The company operates coal terminals in Guigang, Guangxi Province, China which handled close to 5 Million MT of Chinese coal last year.