JAKARTA. CEO of PT Indah Kiat Pulp & Paper Tbk (INKP), Hendra Jaya Kosasih, won the Best CEO In Forestry And Paper Products award from Tempo.co and IDNFinancials last Friday (1/12) at Sofitel Hotel, Nusa Dua, Bali.

Hendra Jaya Kosasih accepted this award after triumphantly bringing his company to become the largest pulp and paper producer in Indonesia and continuing its growth for five consecutive years, both in terms of revenue and net profit, from 2019 to 2022. As its performance continues to grow, so does the performance of its shares on the stock exchange. It continues to increase and has reached a market capitalization of IDR 46.50 trillion and is now ranked 38th out of 902 public companies listed on the Indonesian Stock Exchange (IDX).

INKP's financial performance, which has flourished from 2019 to 2022, can be listed as follows. In 2018, revenue reached IDR 3.22 trillion, before rising to IDR 2.99 trillion in 2020, further to IDR 3.52 trillion in 2021 and IDR 4 trillion in 2022. Its net profit also proliferated from IDR 274.37 billion in 2019 to IDR 294.05 billion in 2020, IDR 527.08 billion in 2021, and IDR 857.51 billion in 2022. In the third quarter of 2023, revenue clocked up to IDR 2.69 trillion, with a net profit of IDR 320.88 billion.

Expansion has further induced ever-increasing revenue of the company. It could be seen through the expansion currently being carried out by INKP in Karawang, which will possess production capacity of 3.9 tons, consisting of 3 million tons of white paper and 900 thousand brown industrial paper. Investment in Karawang will take up around IDR 54 to 55 trillion. As of now, INKP has 3 factories located each in Tangerang, Serpong; Perawang, Riau; and Serang, Banten, all of which produce brown paper and food packaging and thick white paper.

The factory in Karawang is targeted for completion in 2025. Assuming 80% utilisation rate, the investment is estimated to generate additional revenue of around US$ 2.5 to 3 billion, whereas INKP's current revenue is around US$ 4 billion.

After increasing the production volume, Kosasih explained that the largest portion will be allocated for exports, following the expansion of target markets. With the target market expanded. he is optimistic that increasing the number of products will allow INKP to compete in the market. "With a sizable amount of investment, we will be efficient and able to compete. We are also confident that we can compete with competitors in the market," said Kosasih to IDNFinancials a couple of weeks ago.

In terms of sustainability, INKP, as a company whose business depends on natural resources, is committed to supporting zero deforestation policy throughout the supply chain. INKP also implements Chain of Custody (CoC) measures in its factories, as well as Sustainable Forest Management (SFM) practices in all pulpwood supplier concessions. INKP's commitment in the field of sustainability also includes protecting High Conservation Value (NKT) Areas and/or High Carbon Stocks (SKT), including biodiversity.

These are a number of things that Hendra has done during his term at PT Indah Kiat Pulp and Paper Tbk, which make him deserving of awards from Tempo.co and IDNFinancials, a prestigious award to commemorate achievements and success in leading their respective companies in its financial aspect and its impact on the environment (social impact).

This appreciation is carried out following meticulous data collection and research, including data in the financial and sustainability report, as well as virtual and face-to-face meeting with nominated CEOs, or written answers addressed to Tempo-IDNFinancials.

This award also includes a talk show titled Towards Indonesia Emas 2045, featuring 4 CEOs of renowned companies, as speakers. They are Irfan Setiaputra, CEO of PT Garuda Indonesia Tbk; David Hidayat, CEO of PT Industri Jamu dan Farmasi Sido Muncul Tbk; Christian Kartawijaya, CEO of PT Indocement Tunggal Prakarsa Tbk; and Nicolas D. Kanter, CEO of PT Aneka Tambang Tbk. (AM/ZH)