Outline of The Report
INDONESIAN PULP AND PAPER INDUSTRY ITS OUTLOOK AND PROSPECT
March 2007
1. Key Issues
1.1. Introduction
1.2. Different Perception
1.3. Indonesia’s Vanishing Forest
1.4. Indah Kiat and APP of Sinar Mas Group Accused of Illegal Logging
1.5. UFS Projects Blamed for Forest Destruction of Pulau Laut
1.6. Bad Impact Created by APP and Indah Kiat
1.7. APKI responding – All pulp wood requirements could be met by HTI
Plantation
2. Economic Background
2.1. Overview
2.2. The GDP Continues Growing Although Slowly
2.3. International Trade Improving Thanks to Higher Commodity Prices
2.4. The Policy to Improve the Economy
2.5. Forecast for 2007 Slightly Better than 2006
2.6. Investment Climate Expected to Improve
2.7. Medium-term Outlook – Expected to Improve but still Growing Slowly
3. Indonesian Forest the Origin of Pulp and Paper Industry
3.1. Around 72 million hectares of Forest Available to be Exploited
3.2. Industrial Wood Plantation (HTI) Development
3.3. HTI – Pulp Wood Plantation Expansion by Sinar Mas Group
3.4. Log Production has recovered after a decline since the crisis
3.5. Log Supply is primarily intended for pulp and plywood industry located in
Sumatra and Kalimantan
4. Current development of pulp and paper industry
4.1. Historical background
4.2. The raw materials
4.3. Rapid development in 1980 and 1990s
4.4. Current development of the industry
4.5. Basic Estimates of Wood Demand for Pulp Mills
4.6. Wood supply for pulp and paper mills
5. Current pulp and paper production
5.1. Pulp production increased rapidly in 1990’s but slowing down afterward
5.2. Paper production development followed the trend
5.3. Writing and printing paper dominating paper industry
6. Pulp and paper market
6.1. Pulp domestic market slowed down in the last five years
6.2. Pulp export market
6.3. Paper domestic market grew rapidly during the financial crisis but slowed
down in later years
6.4. Writing and printing paper dominating export market
6.5. By destination paper export more widely spread
7. Expansion prospect of pulp and paper industry
7.1. Lured by growing demand in China and India
7.2. New pulp mill project being processed
7.3. Estimated cost of expansion
7.4. The expansion being dreamed by APKI and KADIN
8. Indonesian major pulp and paper companies
8.1. Barito Pacific Group
8.1.1. Active in wood processing industries and many other business
operations
8.1.2. PT. Barito Pacific Timber the central holding and PT. Tanjungenim
Lestari
8.1.3. Financial profile of PT. Tanjungenim Lestari the pulp and paper
8.1.4. Financial profile of PT. Barito Pacific Timber Tbk.
8.2. Dirgahayu Group
8.2.1. A small group in pulp and paper industry through PT. Surabaya
Agung
8.2.2. Financial profile of PT. Surabaya Agung industry pulp and Kertas Tbk
8.3. Fajar Surya Wisesa Group
8.3.1. Another small group in pulp and paper industry through PT. Fajar
Surya Wisesa
8.3.2. Financial profile of PT. Fajar Surya Wisesa Tbk.
8.4. Gudang Garam Group
8.4.1. One of the largest clove cigarette producers involved in paper industry
through PT. Surya Zigzag
8.4.2. Financial profile of . PT. Surya Zigzag
8.4.3. Financial profile of . PT. Gudang Garam Tbk
8.5. Kalimanis Group
8.5.1. Known as Bob Hasan Group
8.5.2. Companies under the Kalimanis Group
8.5.3. Financial profile of Kiani Kertas
8.6. Raja Garuda Mas Group (RGMG)
8.6.1. A large business group in many business operations
8.6.2. April is the holding company for pulp and paper of the Raja Garuda
Mas Group
8.6.3. Financial profile of Asia Pacific Resources International Holdings Ltd
8.6.4. Financial profile of PT. Toba Pulp Lestari Tbk
8.7. Sinar Mas Group (SMG)
8.7.1. A giant business group in many business operations headed by Eka
Tjipta Widjaja
8.7.2. APP the central holding company of the Sinar Mas Group
8.7.3. Financial profile of Asia Pulp & Paper Company Ltd
9. Promising prospect but strong encouragement required
9.1. The economy in 2007-2011 estimated to grow slowly but investment climate
expected to improve
9.2. Encouraging factors for expanding pulp and paper industry
9.2.1. Backed up by natural advantages
9.2.2. Land availability
9.2.3. Relatively low cost of investment
9.3. Indonesia Wants to Become the World’s Third Biggest Pulp Producer
9.4. Despite Strong Criticism by NGOs many Investors Still Attracted by Pulp and
Paper Industry in Indonesia
9.4.1. UFS of Singapore is in the final process to build a chip mill in
Kalimantan
9.4.2. Korindo of South Korea to build a pulp plant in Central Kalimantan
9.4.3. Pulp and paper projects being built by APKI members
9.5. Paper Market Prospect
9.5.1. Domestic market prospect
9.5.2. Paper export market prospect
9.5.3. Overall market prospect and paper
APPENDICES
1 List of pulp and paper mills companies
2 List of pulp and paper exporters companies
3 Forest Products Annual Market Review 2005 – 2006
4 United Fiber Systems
STATISTICAL ANNEXS
1 Forestry exploitation
2 Export Pulp and Paper Market
3 Wood Based Industry
4 Log Supply
5 Wood Productions for the last five years