April Group invests in new paperboard packaging mill in Indonesia

Photo: April Group

Asia Pacific Resources International Limited (APRIL Group) has strengthened its commitment to supporting the growth of the green economy in Indonesia. The company is set to expand its product portfolio in the downstream sector by investing IDR33.4 trillion in a sustainable paperboard production facility.

The construction of the new facility - which will be located at APRIL’s operations in Pangkalan Kerinci, in Riau province, Sumatra - is one of the largest manufacturing investments in Sumatra in the last decade. The investment is expected to support Indonesia’s continued economic development and recovery following the COVID-19 pandemic through the diversification of sustainable downstream fibre products with added value.

When completed, the paperboard packaging facility will be capable of producing 1.2 million tons of folding box board annually that is fully recyclable and biodegradable. This growth is to meet the demand for more environmentally friendly packaging products in the domestic and international markets.

Speaking at a ceremony to mark the construction of the new production facility, Airlangga Hartarto, Coordinating Minister for Economic Affairs said: “We warmly welcome this investment by APRIL Group, which will improve the wellbeing and prosperity of the local communities while also boosting national economic development. The government will continue to develop strategies to support the recovery of national exports through strengthening market access and helping to improve product competitiveness”.

Agus Gumiwang Kartasasmita, Minister of Industry,said: “The increased manufacturing of paperboard in Indonesia will reduce our dependence on imports for this product, while also boosting our foreign exchange reserves through export-oriented sales. This development is also aligned with our Government’s focus to reduce reliance on imports and boost Indonesia's industrial and manufacturing development.”

Sihol Aritonang, President Director, PT Riau Andalan Pulp and Paper, the operating arm of APRIL Group, said that the investment was the latest stage in the company’s development of its operations in Riau and was part of APRIL’s long term commitment to the region.