Located at Pangkalan Kerinci, in Riau province, Sumatra, the new facility can produce 1.2 million tonnes of fully recyclable and biodegradable folding box board annually
Sustainable fibre and product producer Asia Pacific Resources International Limited (APRIL Group) has announced that will invest IDR33.4 trillion ($2.3bn) in a sustainable paperboard production facility in Indonesia.
Through the investment, Singapore-based APRIL Group aims to expand its product portfolio in the downstream sector along with supporting the growth of the green economy in Indonesia.
Located at Pangkalan Kerinci, in Riau province, Sumatra, the new facility that is being built can produce 1.2 million tonnes of fully recyclable and biodegradable folding box board annually to meet the demand for sustainable packaging products in the domestic and international markets.
The company’s move is claimed to be one of the largest investments in Sumatra in the last decade. It will support Indonesia’s economic development and recovery following the Covid-19 pandemic.
APRIL Group’s operating arm Riau Andalan Pulp and Paper president director Sihol Aritonang said: “This is our largest single investment here since the company was founded almost 30 years ago.
“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.”
The investment complies with the APRIL Group’s Sustainable Forest Management Policy 2.0, which prohibits deforestation.
It will help the corporation meet its APRIL2030 targets, which include net-zero emissions from land use, no net loss of conserved areas, positive biodiversity gains and zero extreme poverty in its communities.
Indonesian Economic Affairs coordinating minister Airlangga Hartarto 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 through strengthening market access and helping to improve product competitiveness.”