Indonesia’s Largest Paper Producer

Background

PT Indah Kiat Pulp & Paper Tbk is the largest manufacturer of paper pulp, paper and other paper-related products by sales in Indonesia, and one of the largest in the world.

It also produces industrial paper products, such as packaging paper and specialty paper.

It is owned by the holding company, APP, which is controlled by the Sinar Mas group.

Business Description

INKP is the biggest producer of paper pulp, paper, and paper-based products in Indonesia, with total annual production, mainly out of Indonesia and China, reaching over 19 million tonnes per annum.

Products are marketed in more than 120 countries across six continents, and in 9M17, 49% of product sales were overseas.

The company’s largest product segment is pulp and paper, accounting for 64% of sales, followed by paper packaging, which generates around 1/3 of revenue.

Paper packaging or industrial paper products include linerboards, which are the basic material for making cardboard paper boxes, corrugated mediums (also used in cardboard boxes and packaging), corrugated shipping containers, boxboards and specialty colored paper. Boxboard is the cardboard used in food cartons and shoe boxes.

The Chinese are key players in global paper production. Hence their recent domestic capacity restraint has helped to tighten supply which should support stable or higher prices.

Leadership

Saleh Husin was appointed the role of President Commissioner at the AGM in June 2017. He has experience as a Representative, Director and Commissioner of multiple companies. He obtained a bachelor’s degree from the Faculty of Economics of Krisnadwipayana University, Indonesia and masters degree in Public Administration from the same university.

Hendra Jaya Kosasih was appointed as the President Director, also at the AGM meeting in June 2017. He has previously held the position as Vice President Director since 1997. He graduated in Economics from Trisakti University in Jakarta, Indonesia.