AKRA Establishes Shipping Subsidiary to Support Distribution Business

Jakarta, April 19, 2011 - PT AKR Corporindo Tbk (AKRA) announced that it has established a new subsidiary, PT AKR Sea Transport on April 15, 2011. PT AKR Sea Transport engages in inter-island shipping in Indonesia. This subsidiary is intended mainly to support the company’s own distribution business related to petroleum, chemicals and energy.

The main activity of this subsidiary is to distribute products between our logistics networks across Indonesia as well as to deliver products to the customers. AKRA owns 99.99% of PT AKR Sea Transport, the balance is owned by PT Usaha Era Pratama Nusantara which also 99.99% owned by AKRA.

We understand that as our distribution businesses continue growing, a logistics infrastructure related to sea transportation is also required to be successful in logistics and distribution businesses in the archipelago country like Indonesia.

 Our shipping subsidiary will complement our logistics infrastructure such as tank terminals and is required to strengthen the delivery of petroleum and energy related products.