JAKARTA - PT Indah Kiat Pulp & Paper Tbk (INKP) plans to establish a new paper manufacturing plant worth a total investment of USD 3.63 billion. This plant will be located on a licensed area of 350 hectares (Ha) in Karawang, West Java.

In the information disclosure quoted Monday (15/3), the plan of this facility establishment is hatched as the demands for the company's goods increase, especially in the Asia market. Throughout 2021-2025, the demand for pulp is expected to rise 2%, followed by paper products of 2%, tissue 4%, and paper 3%.

Some of the contractors that will handle this project include PT Adhi Karya (Persero) Tbk (ADHI), PT Gunung Patapaan Abadi, PT Lancarjaya Mandiri Abadi, PT Masterpancang Pondasi, PT Pakubumi Semesta, PT Putra Bintang Sembada, PT Teamworx Indonesia, and PT Top Pondasi Indonesia. They are not affiliated with INKP itself.

The investment for this plant construction is worth over 50% of INKP's equity in December 2022, which reached USD 5.60 billion. The factory will be built on 34 pieces of land that belong to PT Persada Kharisma Perdana with a total area of 2.08 million m2, and another 8 tracts of land of PT Paramacipta Intinusa of 1.13 million m2 in Kutanegara, Ciampel, Karawang. (LK/ZH)