PIS and NYK Officially Collaborate, Prepare to Strike The Global LNG Market and Expand The Green Business
Tokyo, 1st December 2022 - In order to dominate the global LNG industry, PT Pertamina International Shipping (PIS) and Nippon Yusen Kaisha (NYK) have officially announced a partnership involving investments and strategic business engagement.
The value of PIS assets as Sub Holding Integrated Marine Logistics from PT Pertamina will be unlocked or increased as a result of this signing (Persero). The Shareholders Agreement, the Share Subscription Agreement, and the Strategic Alliance Agreement were all signed.
The cooperation agreement was signed directly by PT Pertamina (Persero) President Director & CEO Nicke Widyawati, NYK CEO Hitoshi Nagasawa, PIS CEO Yoki Firnandi, and Pertamina Pedeve Indonesia Rahmi Amini. Also present at the signing was the Director of Strategy, Portfolio, and Business Development of PT Pertamina (Persero) A. Salyadi Saputra.
Abdi Mustakim, Assistant Deputy for the Ministry of State-Owned Enterprises responsible for the energy, oil, and gas industries, also witnessed this momentous occasion. In addition to boosting financial and business profits, strategic collaboration with partners of the level of NYK is required to improve the capabilities of the PIS fleet crew and enable them to engage in more aggressive worldwide competition.
Abdi Mustakim believes this partnership can boost value and generate benefits for both businesses. "PIS and NYK can expand together in terms of performance, resources, and other business elements, and gain most from the relationship that already exists."
The realization of this partnership, which required extensive negotiation, is appreciated and welcomed by PT Pertamina (Persero) President Director Nicke Widyawati.
"I'm also pleased that NYK was selected as a key partner. In the end, NYK was selected from among the many invited possible investors, naturally as a result of the firm's standing, experience, and proficiency in industries that are compatible with PIS", Nicke remarked.
Nicke expects that this partnership will encourage PIS to launch new ventures like LNG transportation, broaden its international market reach, and enhance its capabilities.
The collaboration between PIS and NYK is supported by Indonesia's ambassador to Japan, Heri Akhmadi, who also sees it as a step toward fulfilling a G20 pledge, namely the creation of an Asia Zero Emission Community (AZEC).
"Japan and Indonesia are the potential to be Asia’s role models for collaboration in achieving a cleaner, more equitable, sustainable, and cost-effective energy transition."
According to the CEO of PT Pertamina International Shipping (PIS), Yoki Firnandi, this strategic partnership is a component of a larger plan to establish PT Pertamina (Persero) as a preeminent global energy corporation. "PIS as Sub Holding Integrated Marine Logistics supports this aim through a strategic collaboration with NYK, which of course will offer numerous benefits to the company”, Said Yoki.
Accelerated PIS capability development is one of the advantages that businesses can get. One of the biggest shipping corporations in the world, NYK is also one of the top two gas carrier owners globally.
The possibility to access new markets and become a more ecologically friendly company as part of PIS's energy shift is another benefit.
"Of course, NYK also benefits from this relationship because the Indonesian market is sizable and has room to expand. To become Asia's Leading Integrated Marine Logistics Company, PIS must expand its operations through cooperation."
Additionally, collaboration with major international entities like NYK will improve PIS employees' capacity to explore more extensive worldwide channels. PIS has sailed on 18 foreign routes thus far, and it continues to look into new ones and markets in order to grow its business.
As is well known, NYK is one of the top shipping firms in Japan. At the moment, NYK runs 817 vessels, 86 of which are LNG carriers. With its operations spanning numerous regions of the globe, NYK's track record as a shipping corporation is likewise unquestionable. Currently, NYK runs 639 logistics facilities worldwide in addition to 20 ports.
For the record, PIS received joint financial advice for this transaction from Credit Suisse, CIMB Sekuritas, and Mandiri Sekuritas.
About PT Pertamina International Shipping (PIS)
As Subholding Integrated Marine Logistics, PT Pertamina International Shipping (PIS) continues to drive economic growth in Indonesia with safe and sustainable operations, becoming a trusted and reliable maritime partner, and creating value for stakeholders in running its business.