Indonesian Pulp & Paper Industry Recovered Paper, Recycling & Usage

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1 Indonesian Pulp & Paper Industry Recovered Paper, Recycling & Usage Liana Bratasida Company Shanghai, September, 2014

2 Indonesia s Geographical Location Indonesia s competitive advantages in its geographical location Indonesia s availability of wood as raw material for pulp and paper industry Vast forests allocation for industrial purposes

3 Production Capacity in Indonesia Pulp 5,02 million tons 5,27 million tons 4,55 million tons Paper 8,66 million tons 9,01 million tons 6,75 million tons Consumption of Paper per Capita per Year Indonesia USA Belgium Denmark Canada Japan Singapore Korea Malaysia 32.6 kg 32 kg 295 kg 270 kg 250 kg 242 kg 180 kg 160 kg 106 kg Source: Ministry of Industry, 2014

4 Indonesia s Export Trend Source: Ministry of Trade, Indonesia

5 Pulp and Paper Export in Volume (Thousand Tons) Source: Ministry of Trade, Indonesia

6 Indonesia s Import Trend Source: Ministry of Trade, Indonesia

7 Pulp and Paper Import by Countries in Volume (Thousand Tons) Source: Ministry of Trade, Indonesia

8 Pulp and Paper Import by Types in Volume (Thousand Tons)

9 Pulp and Paper Industry in Indonesia Text Text Text Text Text APKI members: 61, 17 VLK certified, and 21 Industrial Plantation Forests 33 paper companies imported recovered paper.

10 Indonesian Pulp and Paper Companies using Recovered Paper No Indonesian Companies imported Waste Paper Types of Product 1. PT Adiprima Suraprinta Newsprint 2. PT Asia Paper Mills Fluting & kraft liner 3. PT Aspex Kumbong Newsprint 4. PT Buana Megah Fluting & Kraft Liner 5. PT Eco Paper Indonesia Carton boxes 6. PT Ekamas Fortuna Fluting & Kraft Liner 7. PT Enggal Subur Kertas Fluting & Kraft Liner 8. PT Evergreen (100%) Fluting & Kraft Liner 9. PT Fajar Surya Wisesa Fluting & Kraft Liner, board 10. PT Indah Kiat Pulp and Paper Paper, packaging 11. PT Integra Lestari Closed 12. PT Jaya Kertas fluting & kraft liner 13. PT Kertas Basuki Rachmat Writing & printing paper 14. PT Kertas Leces Fluting & Kraft Liner, Tissue Paper, Writing & printing paper, security paper 15. PT Mega Surya Eratama Duplex Paper Board

11 Indonesian Pulp and Paper Companies using Recovered Paper No Indonesian Companies imported Waste Paper Types of Product 16. PT Mount Dreams Indonesia Fluting & Kraft Liner 17. PT Pabrik Kertas Indonesia (Pakerin) carbonless 18. PT Pabrik Kertas Noree Straw Board, Chip Board, Grey Board, White Board, Core Board, Corrugating Medium, Kraft Liner 19. PT Pabrik Kertas Tjiwi Kimia Paper, stationary, packaging 20. PT Papertech Indonesia board 21. PT Pelita Cengkareng Paper Subang Fluting & Kraft Liner 22. PT Pelita Cengkareng Paper Tangerang Fluting & Kraft Liner, board 23. PT Pura Barutama Board, Carbonless, Carton boxes, Cigarette paper, Fluting & Kraft Liner, Newsprint, Specialty Paper, Writing & Printing Paper 24. PT Pura Nusapersada Fluting & Kraft Liner, Sack kraft paper 25. PT Setia Kawan Newsprint, others 26. PT Sinar Indah Kertas Medium liner 27. PT Sopanusa Tissue & Packaging Saranasukses Tissue paper 28. PT Star Paper Fluting & Kraft Liner 29. PT Suparma Tbk Board, sack kraft, tissue, Writing & Printing Paper 30. PT Surabaya Agung Industri Pulp & Kertas Tbk Closed 31. PT Surabaya Mekabox Fluting & Kraft Liner 32. PT Unipa Daya Specialty Paper, Writing & Printing Paper, others 33. PT Wirajaya Packindo Fluting & Kraft Liner, board

12 4,500,000 4,000,000 3,500,000 4,137,282 Import Recovered Paper 3,705,755 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 1,468, , Import Recovered Paper

13 World Recovered Paper Demand World recovered paper demand has grown by around 70 million metric tons (45%) in the last ten years ( ). Asian demand represents the majority of this growth, increasing by about 60 million metric tons as recovered paper is now the main component in global paper and paperboard production. Over the next five years, world recovered paper demand will continue to grow aggressively from fiber-poor regions, such as China and India.

14 Indonesia Recovered Paper Demand Indonesia recovered paper demand is 6 million tons/year where 4.5 million tons of which are used for packaging industry and 1.5 million tons for newspaper industry. About 70% of recovered paper is imported from other countries.

15 Indonesia s Import of Waste Paper (in Thousand Tons) 500, , , , , , , until June , ,000 50,000 - Singapore Australia United Kingdom USA Italy New Zealand Saudi Arabia Japan Belgium UAE Source: Ministry of Trade, Indonesia

16 Barriers faced by Indonesia relating to Waste Paper Low collection rate Indonesian Government Regulations that classify waste paper as hazardous waste so that inspection and strict control is performed. Limited amount of waste paper as resource Waste paper prices are high No incentives from Indonesian Government whereas the use of waste paper helps Government in waste management Recommendation Form a Forum to discuss waste paper issues in Asia

17

18 Distribution of Producers Types of Products Newsprint Printing/ Writing (Uncoated) Printing/ Writing (Coated) Sack Kraft (Kertas Kantong Semen) Kraft Liner & Fluting Corrugating Medium Boards Industrial Wrapping Paper Cigarette Paper Tissue Paper Speciality Joss Paper Security Paper

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