Akraya International invests in the future with high-value greenfield projects
Thirty-nine years ago, in 1976, a young man named Vinod Laroya first arrived in Indonesia to help create what would go on to become one of Indonesia’s largest blue chip companies, Indorama. One would think that leading a company for 28 years through the turbulent economic and political climate of Indonesia in the 1980s and 1990s would be achievement enough. However, at the age of 56, Laroya decided to resign and begin a climb towards creating his own personal dream. In all this time, he had always believed in Indonesia despite its troubles. For him, the country had been his benefactor and now it was his time to give back by doing what he knew how to do best – create industry. And so Akraya was born.
A management executive who had set up businesses in diverse industries, Laroya set up Akraya in 2004 to be a leader in setting up management practices for Indonesian industries that could outshine others at any global stage. His first investment was Surya Esa Perkasa (SEP) in 2006, a company that operates the only independently owned liquefied petroleum gas (LPG) refinery in South Sumatra. The country has a growing need for LPG and it imports more than 70 per cent of its 7.5 million-tonne demand. Aiming to create a national self-sufficiency of downstream gas products, SEP entered into an expansion project in 2015 that increased its production capacity by more than 50 per cent to 200 tonnes per day of LPG and 500 barrels per day of condensate. Located near Palembang, SEP is ideally positioned to take advantage of Indonesia’s growing desire to increase its gas downstream sector.
In 2011, just five short years after investing in SEP, the firm was able to acquire 60 per cent of Panca Amara Utama (PAU) in Luwuk, Central Sulawesi. PAU has begun commercial production of 700,000 metric tonnes per annum of ammonia since the first half of this year. A US$830 million project, it is one of the largest single investments of the International Finance Corporation-World Bank in Indonesia and has the strong support of the country with a groundbreaking ceremony attended by President Joko Widodo himself. It is set up to be one of the lowest-cost producers of ammonia globally and has the backing of global industry partners such as Mitsubishi. Furthermore, the financing of PAU was a landmark deal that went on to receive global recognition by winning the 2014 PFI Awards and the 2016 Asset Asian Awards.
“Akraya not only understands the nature of government rules and regulations, but also has the ability to enable creative financial solutions for important industries,” Laroya says. “PAU is a domestic initiative that is built by Indonesians for Indonesia.”
Coming up on its 15th year anniversary, Akraya is set to continue investing in Indonesia’s growing future.