When did AKR Corporindo go public?
What is the ownership structure of AKR Corporindo?
The company was listed in Indonesian Stock Exchange in 1994 and trades under the ticker code AKRA.
Brief history of AKR Corporindo?
The company currently has 3.94 billion shares outstanding of which 58.83% are owned by controlling shareholders, 0.72% by employees via management stock options program with the remaining 40.45% owned by public.
What market segments does AKR Corporindo serve today?
AKR Corporindo was founded in Surabaya in 1960s initially as a trader of basic chemicals and today the company is one of Indonesia’s leading distributor of basic chemical and petroleum products.
How does AKR Corporindo supply petroleum to industrial and retail segment?
AKR Corporindo is supplying petroleum and basic chemical products supported by its extensive infrastructure facilities including tank terminals and barging facilities to industrial and retail customers in most of the major cities across the country. Today, our market segments are industries including multinational companies, state-owned enterprises, commercial enteprises and small businesses. AKR’s subsidiaries provide third party logistics services to customers in Indonesia delivering products and services; In China the company operates container and bulk ports in the Pearl river and manufactures and supplies Sorbitol and starch derivatives to the oral care and pharma sectors
AKRA competitive advantages versus its competitors?
AKR imports petroleum products from global refineries based on customer requirements and supplies petroleum to industrial and retail segments from its network of storage terminals, sea, river and land transport. AKR also provides fuel management services to its customers adding value to them. AKR through AKR retail petrol stations supplies High speed diesel and petrol to cater for the needs of its retail customers including motorists and fishermen. It currenly operates 131 petrol stations located across the major islands of Java, Sumatra, Bali, Kalimantan and Sulawesi.
How can I become a franchisee of AKR to operate retail outlets?
The company possess adequate infrastructure network as well as landbank in the port area to build logistic facilities and provides end to end supply chain solutions.
How does AKR manage risks associated with fluctuating petroleum prices and exchange rates?
The potential franchisee is to submit the franchisee application form to AKR in which they will assess the selection based on the legal, financial, administration and technical criterias. For those franchisees whom have been selected, AKR will issue a franchisee certificate which are valid for the period of 3 to 6 months.
What are AKR key environmental, social and governance risks and how are these mitigated?
The company manages its risk associated with volatile petroleum prices and exchange rates by maintaining an adequate spread over its base oil price as well as by hedging its FX exposure.
What is AKR Strategy to participate in the fast deregulating downstream petroleum segment?
There are various environmental, social and governance risks that AKR is faced with these include risks of system and equipment failures, natural disasters etc which disrupts the operation of the company and in mitigating these risks, the company always reminds its employees regarding risk awareness so they can contribute in risk management and provide important input in decision making processes. Thus, management and all employees are committed to implement risk management.
Why is AKR investing in Java Integrated Industrial Ports and Estate Project?
Two of the most recent initiatives that AKR has undertaken in response to the deregulation in the downstream petroleum segment are building of additional storage tanks due to increasing capacity utilisation and building of additional petrol retail outlets.
What are the key benefits of JIIPE industrial estate and Port ?
To further grow its infrastructure capability and add a recurring income component to its business model.
What is the shareholding structure of JIIPE project?
Significant reduction in logistics cost for the tenants due to the port and industrial estates which are integrated. Also, another key feature of JIIPE is its port’s ability to accomodate large international vessels utilising its deepwater port.
What is the long term strategy of AKR for JIIPE? What are the plans to build supporting infrastructure?
- BKMS (Industrial Estate) - 60% AKR / 40% Pelindo 3
- BMS (Port) - 60% Pelindo 3 / 40% AKR
- Residential - 100% owned by AKR Land (affiliated entity to AKR Corporindo)
How does the group manage succession planning across its key management roles?
To make JIIPE as the destination of choice for industrial investments in Indonesia especially for export oriented industries. In terms of supporting facilities which has been planned it includes power plant, water treatment facility, toll road, railway etc.
What is the dividend policy of the Company? What is the track record of dividend payments?
As part of the group’s succession planning program, the group constantly identifies potential employees to fill the key management roles and has already built a competency model across different function for each level and position.
The company has a policy of maintaining at least 30% in terms of dividend payout ratio and over the last couple of years the company has consistently paid a dividend in excess of 30% to its shareholders