INDONESIA POTENTIAL TO BECOME WORLD’S NUMBER-ONE PULP AND PAPER PRODUCER

        National pulp and paper business operators were optimistic that Indonesia is potential to become world’s largest pulp and paper producer following Indonesia’s wood which is still abundant all over Indonesia. Indonesian Pulp and Paper Association (APKI), sets target of volume of pulp production to reach 20.4 million tons and paper production to reach 19.8 million tons by 2020. Executive Director of APKI, Liana Brataside, was optimistic that pulp and paper industry will be growing rapidly, empowered by condition of land and season in Indonesia which is conducive in the development of industrial forests (HTI).

       According to Liana, Indonesia’s pulp and paper production is potential to surpass productive forest producing countries such as Brazil, United States and China. Up to this day, Indonesia’s pulp production has reached 6.9 million tons a year and paper production 11.5 million tons a year. Indonesia now sits on the 9^th position as world’s pulp producer. And, productivity of Indonesia’s paper industry has occupied the 6^th position or surpasses Scandinavian countries which currently tend to accelerate import due to scarcity of raw material. “I am confident that Indonesia could become world’s number-one pulp and paper producer”, she said.

       Liana believed that paper demand will increase continuously with average growth of 2.1% a year. She explained that in the previous year, national paper consumption reaches 7.8 million tons, and world’s demand is currently at 394 million tons. Growth in paper demand in advanced countries will increase around 0.5% a year so it could reach 394 million tons by 2020. Projection of growth in paper demand in advanced in export volume. She said that the government has set target of capacity of pulp and paper export to increase by 10% this year. Pulp and paper export last year is able to contribute up to USD 6.2 billion or around 5% of Indonesia’s total export.

          But, she reminded that even though its potency is very substantial, pulp and paper industry operators must pay attention to environmental aspect. According to her, besides it being based on economic aspect, pulp and paper industry must pay attention to environmental and social aspects to create sustainable environmental preservation. There three aspects must become an integrated unit. The government should make a guide on sustainable procurement based on legality, social and economic aspects. This is important to make Indonesia’s pulp and paper products acceptable in international market.

          Liana said that pulp and paper export mechanism in the future must be in accordance with Timber Legality Verification System (SVLK). Every industry unit must have SVLK if they want their products to be acceptable in export destination countries. The Indonesian government has signed MoU with several European Union countries, United States, Japan and China for the implementation of SVLK so that illegal logging can be traced right back to the source who has the license.

         The government has appointed five verification institutions which will provide certification for some forestry industry units. These institutions will inspect timber legality in accordance with good forest management principles ad stipulated by the Forestry Ministry. Forestry products certified as legal will be given a mark and a special document by an independent appraisal and verification institution. “By having the certificate, we are confident that Indonesia’s pulp and paper products will be more competitive in international market”, she said.

 Business News - April 20, 2012