Profile of The Pulp and Paper Companies in Riau Province

4.5 Profile of The Pulp and Paper Companies in Riau Province

Raja Garuda Mas owns Asia Pacific Resources International Limited APRIL while Sinarmas Group owns APP Asia Pulp and Paper, which both are based in Riau Province and contributed up to 80 percent of the pulp and paper production in Indonesia. The biggest pulp and paper companies in Riau Province are PT. Indah Kiat Pulp and Paper PT. IKPP and PT. Riau Andalan Pulp and Paper PT.RAPP. PT. IKKP operating in the region Perawang, and PT. RAPP operating in Pangkalan Kerinci. Perawang is the capital of Tualang District, Siak Regency in Riau Province, Indonesia and Pangkalan Kerinci is a district, which is also the capital of Pelalawan, Riau Province. 1 PT. Indah Kiat Pulp and Paper The company was established as a joint venture in 1976, with the Sinarmas Group acquiring 67 percent of total shares in 1986 and was listed on the Jakarta and Surabaya stock exchange in mid 1990s. It has a fully integrated pulp and paper mills in Riau Province and two manufacturing facilities in West Java, which produce fine paper and packaging products respectively. The total sales outside Indonesia represent approximately 60 percent of total sales. The company currently produces various types of paper products, including printing and writing paper, and packaging products, such as containerboard and boxboard. It also produces pulp, which is the key raw material for paper products and is also used in the production of packaging products. The company’s principal printing and writing paper products are uncoated free sheet and cut-sized photocopier paper. They are sold under the following major brands: Paper line, Britex, Copy Paper, PPC Paper, Paperon, IK-Plus, and e-Paper. The packaging products include: ivory board, duplex board and containerboard. In recognition of the company’s performance in quality management system and environmental management system, it has been awarded the ISO 9002 and ISO 14001 certifications. Table 4.3 Boards of PT. Indah Kiat Pulp and Paper TBK per 31 December 2010 Source: PT. IKPP, 2012 PT. IKPP is one of the biggest producers in Indonesia with capacity over 2 million ton or 29 percent from all national capacity in Riau Province. The consolidated net sales of the company in 2010, were US 2,509.6 million, an increase of 41.5 percent compared to the consolidated net sales in 2009 amounted to US 1,773.4 million. The company obtained a consolidated net income of US 13 million in 2010 compared with consolidated net loss of US 158.5 million in 2009. The volume of Boards of Commissioners President Commissioner Teguh Ganda Wijaya Vice President Commissioner Ir. Gandi S. Soeherman Commissioner Indah S. W. Limantara Commissioner Frenky Loa Commissioner Arthur Tahya Boards of Directors President Director Yudi Setiawan Lin Vice President Director Linda S W Limantara Vice President Director Hendra Jaya Kosasih Vice President Director Suresh Kilam Director Didi Harsa Director Hasanuddin The Director Ir. Buyung Wahab, MM Director Raymond Liu, Ph.D Director Djohan Gunawan Stakeholders PT. Purinusa Ekapersada 52.72 Public 47.28 production increased from year to year. In 2006, the production volume is 652 thousand tons, and increased almost 20 percent in 2010. Table 4.4 The Production Volume and Sales Volume of Paper PT. IKPP Description 2006 2007 2008 2009 2010 Production Volume thousand of tons 652 755 683 696 781 Sales Volume thousand of tons 634 740 670 693 759 Source: PT. IKPP, 2012 2 PT. Riau Andalan Pulp and Paper TBK APRIL APRIL is one of the world largest pulp and paper companies and a leading developer of fiber plantations with 2.20 million tons production or 32 percent from total national capacity and a member of the Raja Garuda Emas RGE group, one of the leading integrated resource-based privately owned industrial groups in the Asia Pacific region. APRIL first plantation development commenced in Riau Province in Sumatra, Indonesia in 1993. Today, the center of APRIL core business is in two locations first is in Indonesia and the second is in China, which are among the largest and most efficiently managed of their kind anywhere. In Kerinci District, Riau Province, APRIL commenced commercial pulp production in 1995 and commercial paper production in 1998. In 2001, the completion of Pulp Line 2 were set to bring capacity increased to be 2 million tons per year, placing Kerinci District as home to one of the largest single pulp production lines and fastest fine paper machines in the world. In 2002 the company established a pulpwood sourcing and tracking policy creating a chain of custody system that ensures all products for its mill come from the legal and verified sources. The company also published its first sustainability report on the same year. In 2005 the company voluntarily adopted its High Conservation Value Forest HCVF policy and conducted assessments on the Kampar Peninsula, Indonesia. More than 19 percent of the concessions where their wood supply comes from in Indonesia are protected as conservation forest. While these concessions account for only 8 percent of designated production forest areas in Riau Province, the HCVF areas conserved by APRIL and their supply partners account for more than 25 percent of all conservation areas, including national parks, in the Province. APRI high quality materials are used to package the milk, juice and other beverages consumed by millions of people each day, the paper used in offices and at home, the tissues found in family bathrooms, the shopping bags and food packaging essential of weekly grocery shopping, and some of the best-read magazines and books. The flagship APRIL paper product is PaperOne TM , a range of premium quality office paper that is made from plantation fibred and designed for the most demanding printing and copying tasks. PaperOne TM presentation is a premium quality paper designed for use in all kinds of office equipment using inkjet and xerographic printing.

V. RESULTS AND DISCUSSIONS