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Sinar Mas to Build Asia's Largest Pulp and Paper Factory  

12 May 2015 11:30 WIB

Pabrik kertas. TEMPO/ MahanizarDjohan

TEMPO.CO, Jakarta - Sinar Mas Group will be developing a pulp and paper factory, claiming it to be the largest in Asia with a production capacity of 2 million pulp per year.

“The factory owned by PT OKI Pulp and Paper will improve the competitiveness of Indonesian paper mills in the world, which is previously in eighth position, to be bumped up to third,” Managing Director Sinar Mas Group G Sulistyanto said in Jakarta on Monday.

The factory located in Ogan Komering Ilir, Palembang, is under construction and is expected be operable in 2016 or 2017, whose production is oriented to export markets with a value of Rp14 trillion per year.

“The investment value is Rp 30 trillion.  Nearly 80% of the total production will be exported to 20 countries with Europe, U.S., Japan and China as its main objective,” Sulistyanto said.  Currently, Sulistyanto said that the company is waiting for the signing of the fiscal facility in the form of tax holiday by the government.

Industry Minister Saleh Husin said that Sinar Mas Group’s tax holiday submission have meet the requirements in the ministerial level, and is currently on President Joko Widodo’s desk.

“Documentation matter with the Industry Ministry and Finance Ministry has been completed,” the Industry Minister said.

Industry Minister expects the fiscal facility could be enjoyed by the pulp and paper maker due to the enormous investment value, its remote area location, employs abundant workers and export-oriented.

ANTARA




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