PT AKR Corporindo (AKR) engages in the distribution of basic chemicals, fuel oil, logistics, and supply-chain services in Indonesia. Presently, AKR is regarded as one of the leading companies in the country.
Soegiarto Adiekoesoemo, one of Indonesia’s renowned businessmen, established the company in 1960s. However, it was officially registered as a limited company on November 28, 1977, in Surabaya. AKR trades and distributes chlor-alkali chemicals, solvents, organic and non-organic chemicals from both local and foreign suppliers. The company took a big step by building storage tank in order to pave its way as the main player in basic chemicals distribution. Eventually, AKR became the first private company to build tank terminal for basic chemicals storage in Indonesia.
Its innovations made AKR as basic chemical distributor with the largest market share in Indonesia. As the number of partners kept growing, AKR relocated its headquarter from Surabaya to Jakarta in 1985.
Led by Soegiarto, AKR took a huge leap by making the company public in 1994. The capital raised from its initial public offering at the Indonesia Stock Exchange was used to develop the company’s infrastructure by building new storage terminals, spread across Java and Sumatera. The business continued to thrive in the 1990s, which was then marked by its expansion to fuel oil distribution.
Along with its business portfolio growth, the company changed its name from PT Aneka Kimia Raya Tbk into AKR Corporindo Tbk, which reflects the expanding scope of its business.
In 2005, the role of AKR as fuel oil distributor became even more prominent since the Downstream Oil and Gas Regulatory Agency (BPH Migas) appointed them to distribute non-subsidized fuel oil. AKR was the first private company chosen by the government to distribute diesel, fuel oil, and diesel oil to clients from mining sector, power plant, plantation, trades, and bunker. This trust has yet to include its involvement on developing strong port infrastructure and logistic, as well as tank terminal facilities owned by the company in several parts of Indonesia with total capacity of 666,000 kiloliter.
After proving a great deal of experience and credibility in distributing the non-subsidized fuel oil, the government through BPH Migas once again trusted AKR to distribute subsidized fuel oil in 2010. Welcoming the increasing confidence, AKR developed its infrastructure by expanding its service area coverage. Today, AKR-owned storage tank terminals are spread in 15 ports all over Indonesia.
The capability in delivering goods on time and managing supply chain are the strengths of AKR. The company operates various shipping vessels, ranging from tankers, barges, and self-propelled oil barge/SPOB to distribute subsidized and non-subsidized fuel oil, as well as basic chemicals. These vessels are able to cross both sea and river. To handle a more specific case, one is also specially designed by AKR to cross shallow waters of 2.7-meter depth in Kalimantan.
A subsidiary of AKR Corporindo, PT AKR Transportasi Indonesia which specializes in logistics, today operates over 400 land transportation services. With its strong logistics assets including trucks and ships, AKR is able to serve over 2,000 companies of various industries in Indonesia.
Pursuing to develop its business in trade services, distribution, and logistics, AKR partnered with Royal Vopa to build a joint venture company, PT Jakarta Tank Terminal (JTT) in 2011. JTT engages in modern fuel oil storage services that serve both national and international oil company. It was through JTT that AKR and Royal Vopak built the biggest independent fuel oil storage terminal at the port of Tanjung Priok.
More business line was established upon the partnership between the subsidiary of AKR Corporindo and PT Pelabuhan Indonesia (Pelindo) III, namely PT Usaha Era Pratama Nusantara with PT Berlian Jasa Terminal Indonesia, respectively. The partnership aims to develop industrial area and integrated ports, which is the Java Integrated Industrial and Ports Estate (JIIPE) located in Gresik, East Java.
Investing in Technology
Through its journey, AKR did not merely invest in raising the number of fleet and infrastructure development. The company also puts in a considerable amount of money to implement innovative technology for cargo monitoring and controlling, as well as for subsidized fuel oil distribution.
AKR applied Fuel Dispensing Management System and Automatic Tank Gauging (ATG) in distributing subsidized fuel oil. The plate number of every vehicle that fills in fuel will automatically be registered in the POS system. Other than to print receipts, the system will directly send the data to both branch and head office, taking only seconds after transaction is done.
The ATG technology is implemented to allow the company to monitor the stock and comparing it with data from daily transaction. The system is further supported by other regulation of AKR, such as by enforcing the limit of maximum 200 liter of diesel oil for trucks, and 70 liter of subsidized per day. Not only does implementing POS and ATG technology help branch and head office in supervision, it also helps BPH Migas in controlling the distribution of subsidized fuel.
With the technology, in 2017, AKR manages to gain trust from BPH Migas to distribute subsidized fuel for motor-vehicle and fishermen. The fuel is sold through 150 gas stations under AKR brand, spread across Java, Sumatera, Kalimantan, and Sulawesi.
Small Things Matter
Technology is highly important in supporting the continuously expanding business. AKR has always been particularly conscience of this matter, which is reflected from its business management.
One of the most basic uses of technology is Microsoft Office 365 Enterprise E3, which enables AKR Corporindo to change its data storage from on-premise into on-cloud email since 2013.
Nevertheless, the company is fully aware that advanced technology comes with risks as well. For instance, cloud technology provides convenient access, but users may be exposed to hackers, who by using phishing method can trace their ID and password.
Head of Information Technology of AKR Corporindo, Denny Charlie, stated that in 2018 there had been a phishing attack, whereby bills with different account number were emailed to many employees. Denny said that the phishing might be triggered by one of the employees who had entered their user ID and password using the internet outside of the office.
This incident pushed the company to do thorough evaluation towards on-cloud email security services. According to Denny, the anti-spamming feature from O365 E3 is rather tricky to set. Spams will still get into inbox when the anti-spamming feature is set too low, but will also block many other emails if it set too high. Therefore, the principle initiated to upgrade the security service from its original E3 version to E5.
“Upgrading the service from E3 to E5 means we have to implement it to all users. It is not efficient. We decided to hold an open pitching for email security services,” explained Denny.
Implementing this solution is imperative to enhance email security system of the company. Investment in this technology, doubtless, is more cost-effective in contrast to the loss from attacks - which risks could have been prevented from the beginning.
Among the three vendors offering their products, Symantec Email Security Safeguard is most used by Indonesian companies. This aspect made an important consideration for AKR. Moreover, the competitive price made it more efficient to use Symantec instead of upgrading E3 version user into E5.
Denny emphasized that rather than choosing Symantec merely for being more affordable, AKR saw that they could proceed with the execution faster since a lot of companies use it. For instance, Symantec Email Security Safeguard on O365 can be implemented in only several hours. It is also chosen due to having the most suitable features for the company.
“We decide on products accordingly to what the company needs. It doesn’t have to be the cheapest, we will use it as long as it suits the company,” said Denny.
Since they began using Symantec Email Security Safeguard, the number of incoming email has decreased by 20 to 30 percent. Those are from spams, junks, or emails containing malicious attachment.
Protection from the antivirus reaches through email from original center. Although the email comes from our personal contact, it is still possible to have links that direct us to sites containing malware. Thus this protection includes preventing user from clicking these links indicated with malware.
Implementing the email security cloud also improves employees’ productivity since they don’t have to check potentially harmful emails anymore. And as emails are well protected, user confidence is subsequently increasing.
AKR Corporindo works with PT Mitra Integrasi Informatika (“MII”), a subsidiary of Metrodata Group, in employing the Symantec Email Security Safeguard. Denny stated that the partnership with MII in getting the email security cloud to work had been performing well. As its partner, MII has always responded promptly towards every inquiries from AKR.
“They are always available whenever we contact them. We are well coordinated. I can say that overall, our partnership has been smooth,” he said.
1. Plenty of malware attack against the company.
2. Phishing attack against the company.
3. The setting of email security services does not meet company’s requirement.
Symantec Email Security Safeguard protects email from virus and improves user security.
1. Eliminates spam, junk, or containing malicious attachment.
3. Improved employee’s productivity.
4. Protected emails, consequently increasing user security