| dc.description.abstract | Indonesia is a relatively newcomer in the pulp and paper industry. However, the Indonesian government and entrepreneurs have an ambition to establish Indonesia as the largest pulp and paper producing country in the world. Indonesia has favourable circumstances for the growth of forest trees, and many kinds of tree species which grow faster than those in non tropical countries, resulting in cheap raw material.
The objectives of this study were: (1) to provide a general description of the pulp and paper industry in Indonesia, (2) to determine the position of Rabobank Duta Indonesia (RDI) in several sub-sectors of pulp and paper industry, (3) to describe opportunities, threats and a strategy for RDI in pulp and paper industry, (4) to formulate a strategy and policies for government and entrepreneurs in order to develop pulp and paper industry.
The Indonesian production capacity of pulp exceeds the demand (consumption). In 1995 the pulp production capacity was 2.8 million tons per year and the consumption was 2.2 million tons. For paper, the production capacity also exceeds the consumption. In 1995 the paper production capacity was 4.6 million tons per year and the consumption was 2.7 million tons. The world's pulp and paper supply (197 million tons for pulp and 295 million tons for paper) has also exceeded the world's demand (170 million tons for pulp and 268 million tons for paper). The main net exporting countries of pulp and paper are Canada and Scandinavia. The main net importing countries are Asian countries (China, Hongkong, etc.).
With regard to pulp industry, there are 15 active companies in Indonesia. The Sinar Mas Group, with its subsidiaries like PT Indah Kiat Pulp and Paper, dominate the market with a total production capacity of 1.2 million tons per year (43.9% of total Indonesian -capacity). The second is Raja Garuda Mas with a total production capacity of 0.9 million tons per year (33.4%). Together these two groups dominate the market with a market share of 77.2%. The other producers are state companies (9.2%) and small companies 13.6%)...dst | id |
