INKP to aim for Karawang plant of 3.9 million ton to operate in 2025

INKP - PT. Indah Kiat Pulp & Paper Tbk

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JAKARTA - PT Indah Kiat Pulp & Paper Tbk (INKP) is targeting for Karawang paper factory with a capacity of 3.9 million ton per year to operate in 2025. Until today, the progress of the construction of said factory complex is said to reach approximately 30%.

Suhendra Wiriadinata, Vice President Director of Indah Kiat Pulp and paper, confirmed that the company has been expanding, building a new factory in Karawang, West Java. “The construction of this factory has been going on for a year,” he told IDNFinancials during an exclusive interview in Jakarta yesterday (26/10).

It is said that the company will operate four paper manufacturing plants. As of now, the company has three factories in Serpong, Tangerang; Perawang, Riau; and Serang, Banten.

According to Wiriadinata, the pulp and paper factory in Karawang, West Java, will be erected over 400-hectare land. The total investment for this facility is approximately IDR 54 trillion, which will be sourced out of internal cash, bonds’ issuance proceeds, and bank loans. “The production of said factory will consist of 3 million tons of white paper and 900 thousand tons of industrial paper (brown),” he explained.

It is also said that the demand and production of industrial paper will continue to grow in the future. Therefore, the company is focusing to increase growth of both types of paper. “It is expected that Karawang paper factory will start to operate at the end of 2025,” Wiriadinata added.

Said paper factory will then contribute to the company’s revenue issued in 2026. With utilisation rate of 80%, or 3 million ton out of the total installed capacity of 3.9 million, Karawang plant will contribute approximately USD 2.5-3 billion to total revenue.

It is known that INKP’s revenue in 2022 was recorded at USD 4 billion, shifting from USD 3.51 billion seen in 2021. The net profit attributable to the parent entity was USD 857.5 million, also shifting upward from USD 526.4 million. (LK/ZH)