JAKARTA – PT Indah Kiat Pulp & Paper Tbk (INKP) and PT Pabrik Kertas Tjiwi Kimia Tbk (TKIM), two subsidiaries of APP Indonesia under Sinarmas Group, recorded a year-on-year revenue decline of around 8% in 2024. However, their net profit growth showed a stark contrast.

According to its public presentation, INKP’s net sales dropped 8.14% to USD 3.2 billion in 2024.

This was in line with a 4.6% average decline in pulp, cultural paper, and industrial & tissue paper sales volume, totalling 5.069 million tonnes. INKP’s production volume remained stagnant in 2024, increasing only slightly to 6.611 million tonnes.

Meanwhile, TKIM also reported an 8.26% decline in net sales to USD 985.2 million in 2024. Despite a decrease in cultural paper sales volume to 675,000 tonnes, industrial paper sales volume increased to 515,000 tonnes.

This aligned with TKIM’s 2024 operational performance, which saw cultural paper production decline to 707,000 tonnes, while industrial paper production rose to 625,000 tonnes.

Ultimately, INKP’s higher expenses led to only a modest 3.12% increase in net profit to USD 424.3 million in 2024. In contrast, TKIM’s net profit soared 72.74% to USD 297.14 million.

However, in terms of financial position, TKIM still lags behind INKP, whose total assets reached USD 11.7 billion as of December 2024, with cash and cash equivalents amounting to USD 1.77 billion.

According to public disclosures, TKIM’s assets grew marginally to USD 3.86 billion as of December 2024, with cash and cash equivalents of USD 185.1 million.

As of Thursday, March 27, 2025, INKP’s share price closed at IDR 4,920 per share, with a market capitalisation of IDR 26.9 trillion, while TKIM closed at IDR 4,900 per share, with a market capitalisation of IDR 15.3 trillion.

Both companies are controlled by PT APP Purinusa Ekapersada, or APP Indonesia under Sinarmas Group, which holds a 57.12% stake in INKP and a 59.67% stake in TKIM. (ZH)