JAKARTA. PT Elnusa Tbk (ELSA), a company engaged in the upstream oil and gas industry, announces the allocation of 40% of its total capital expenditure (capex) to acquire more land-based tankers.

John Hisar Simamora, President Director of ELSA, said that this plan is a part of the company’s strategy to reinforce its core business in the energy distribution and logistics field. “As a part of our commitment in ensuring efficient and reliable energy distribution across Indonesia, ELNUSA has regularly, each year, made investments by acquiring new tank cars or replacing those cars that have their usage life expired,” he explained.

For the record, the total capex allocated by ELSA this year amounts to IDR 500 billion, in consolidation. Thus, the amount of capex allocated for this new tank cars acquisition is IDR 200 billion.

The expansion of the fleet will be handled by PT Elnusa Petrofin (EPN), one of ELSA’s subsidiaries. The new cars will be operated in Pertamina’s operational area in various regions, including Sumatra, Java, Kalimantan, and Sulawesi.

Up until the first half of 2023, EPN manages approximately 1,800 units of tank cars. EPN also has 665 units of asset tank-cars (MT BBM, MT LPG, and MT Avtur).

The realisation of this tank car fleet expansion will be carried out gradually, step by step, starting from midyear until the end of 2023. With this expansion, ELSA aims to secure long-term contracts in fuel transportation management. (KR/ZH)