Sunday, 11 October 2015


To be blessed with natural resources and forest 135 million hectares wide did not make Indonesia the Number One player in pulp industry in the world today. Indonesia was only able to settle at number 9 position next to America, china and Brazil.

To quote data of the Ministry of Industry, the volume of pulp and paper industry 2013 was 7.9 million tons to fulfill the need for pulp and paper amounting to 35.3 million m3 and the volume must be increased considering that the need for raw materials in 2017 next would increase at least 27.5% to become 45 million m3.

However the President Director of PT Riau Andalan Pulp and Paper (RAPP) Tony Wenas in Jakarta stated in Tuesday (30/6) that Indonesia still had the potential to be a world player in pulp industry. the reason was that Indonesia’s tropical climate was most supportive to raw materials supply. He said that of the total forest area in Indonesia 70 millions ha could be used as industrial forest. Today there were 70 million ha of industrial Forest but only 3.5 million ha was managed.

And yet he said, the need for fibre as raw materials for pulp and paper in 2050 would increase by 237% to become 2.7 billion m3 from the present 800 million m3.

Meanwhile players of pulp and paper industry were pessimistic that this year would score performance as realization in Q 1/2015 dropped by 30% - 40% compared to same period the previous year. Vice Chairman of APKI Rusli said that the cause of slump of performance of industry was low global demand and also economic slowdown in China.

Data of the Ministry of Industry showed that the need for paper at global level was 394 million tons which grew by 24.4% to Become 490 million tons by 2020. Paper consumption of the world was predicted to grow by 2.1% on the average while in developing countries market the growth was 4.1% and in advanced countries 0.5%.

According to Rusli, Government’s effort to uplift the image of wod industry by SVLK certification had not been fruitfull had sad that the SFI Certificate was better acknowledge today. The Regulation of the Ministry of Trade No. 64/2012 on Export of Forestry products required that wood be back up by SVLK Certificate.

The rule was mandatory for processed wood especially pulp and paper to ensure the legality, but the Regulation was felt as a hindrance to export of paper. Indonesia was one of the most acclaimed producer of pulp in the world being in the position of no 9 and in paper the position was number 6. In Asia the position was number three in terms of volume.

Rusli stated that with attainment in Q 1 Apki predicted that paper production would drop by 30% in 2015. The trend of lessening use of paper known as Paperless Culture was another reason. Last year utilization of paper was around 80%. This originated from production capacity of 13 million tons but realization was only 10.4 million tons. (SS)

Business News - July 3, 2015

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