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In line with its commitment to help grow Indonesia’s green economy, APRIL Group is set to expand its product portfolio in the downstream sector by investing IDR33.4 trillion (US$2.28 billion) in a new sustainable paperboard production facility.
One of the largest manufacturing investments in Sumatra in the last decade, the new packaging facility is expected to support Indonesia’s continued economic development and post-pandemic recovery through the diversification of sustainable downstream fibre products. The investment also highlights APRIL’s long-term commitment to Indonesia’s economy.
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 by 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.”
Meeting Global Demand for Environmentally-friendly Packaging
The facility meets the growing global demand for recyclable and biodegradable options for everything from packaging to fashion, which is being driven by consumer preference in high-growth markets such as China, Indonesia, India and Vietnam.
Strengthening Commitments Towards Sustainability and APRIL2030 Targets
The investment is aligned with the company’s APRIL2030 targets and its Sustainable Forest Management Policy 2.0, which includes a commitment to no deforestation.
Sihol Aritonang, President Director, PT Riau Andalan Pulp and Paper, the operating arm of APRIL Group, said: “This product diversification strengthens our commitment to grow our business sustainably, in line with our existing sustainability commitments and our APRIL2030 targets. The new facility will have a significant positive multiplier effect on our surrounding cities and towns, with over 4,000 construction jobs and nearly 1,000 permanent roles planned.”
APRIL has posted a 40% increase in fibre yield over the past five years from its existing plantations while also committing US$1 per tonne of plantation fibre produced towards landscape conservation. The company has targeted a 50% gain in fibre plantation productivity by 2030.
Launched in November 2020, the overall purpose of the company’s APRIL2030 targets is to deliver a positive impact on the climate, nature and people, while growing the business sustainably over the next decade.