Ministry highlights improvement in pulp and paper industry ranking

At present, the capacity of the national pulp industry is 12.13 million tons per year. This puts Indonesia in eighth place worldwide. Meanwhile, the paper industry places Indonesia at number one with an installed capacity of 18.26 million tons per year

JAKARTA (ANTARA) – Indonesia’s pulp and paper industry showed some improvement so that the pulp industry ranked eighth in the world while the paper industry ranked sixth in the world, the Ministry of Industry said.

“Currently, the capacity of the national pulp industry is 12.13 million tons per year. This puts Indonesia in eighth place worldwide. The paper industry, on the other hand, ranks Indonesia sixth in the world with an installed capacity of 18.26 million tons per year,” explained Juli Ardika, director-general of agro-industry at the Putu Ministry of Industry, here on Friday.

He pointed out that 111 national pulp and paper companies currently employ over 161,000 direct workers and 1.2 million indirect workers.

“In 2021, the export performance of the pulp and paper industry reached US$7.5 billion, or contributed 6.22 percent to non-oil and gas exports, which accounted for 3.84 percent of the gross domestic product (GDP) of the non-oil and gas processing contributed industry,” he said.

The pulp and paper industry still has prospects as demand is still quite high, he noted. However, there was a need to increase product diversification with high value-added, such as B. the processing and dissolution of pulp to viscose as a raw material for products in the textile industry.

“The paper industry is a sector with great potential as almost all paper grades can be produced domestically, including banknotes and securities that have specific specifications to meet security aspects,” Ardika added.

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He also stated that the investment opportunities in the pulp and paper industry and its derivatives are quite good, including PT Riau Andalan Pulp and Paper (RAPP). During a working visit to RAPP in Pangkalan Kerinci, Riau, on Wednesday, he praised the company’s activities that have had a profound impact on the well-being of the surrounding community and sustainable management.

“Increase in manufacturing capacity (RAPP) is expected to increase employment, help fulfill domestic and export markets and reduce dependency on imported products,” he said.

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PT RAPP President and Director Sihol Parulian Aritonang said additional investments of Rs.33.4 trillion (US$2.1 billion) will be made in the period 2021-2023, including to build a factory for green packaging (cardboard) with production capacity of up to 1.2 million tons per year along with other supporting industries.

“PT RAPP is a Bleach Hardwood Kraft (BHK) pulp and dissolving pulp producer that is integrated with the downstream industry and uses 85 percent of the energy from biomass to support the mill’s operations,” he explained.

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