Minister of Investment/Head of the Investment Coordinating Board (BKPM) inspected the expansion of a downstream project from pulp to paperboard at Riau Andalan Pulp & Paper (RAPP), a major subsidiary of Asia Pacific Resources International Holdings Limited (APRIL Group). RAPP is set to invest IDR 33.4 trillion during the period 2021 to 2023. Out of this total investment, IDR 19.5 trillion is allocated for the downstream investment from pulp to paperboard, with a capacity of 1.2 million tons per year. This investment is projected to provide employment for over 5,730 Indonesian workers. Minister's visit is part of the government's effort to directly observe the production facilities and the new investment plans of RAPP. As one of the leading pulp and paper companies in Southeast Asia, RAPP has invested around IDR 100 trillion to date, providing direct employment for 10,595 staff and 18,792 contract workers. Based on the latest data from the Ministry of Investment/BKPM for the second quarter of 2023, RAPP's investment realization reached IDR 645 billion out of the total investment in Riau Province amounting to IDR 23.8 trillion.
 
RAPP also has built a 11-megawatt solar power plant to support its operational needs. The Ministry hopes that this visit will strengthen the relationship between the government and the pulp and paper industry, further enhancing the company's positive contribution to the national economy. RAPP's investment in the paperboard industry targets a sales composition of 30% in the domestic market and 70% for export. Some of the export destinations include countries in Southeast Asia, Africa, and South Asia, such as India, Bangladesh, and Pakistan. The Ministry’s visit to RAPP also included an inspection of the Royal Golden Eagle (RGE) Technology Centre and participation in a eucalyptus tree planting activity. With strong government-industry support and collaboration, it is hoped that the pulp and paper industry in Indonesia will continue to thrive and contribute to the national economy. This visit marks an important step in ensuring the competitiveness and sustainability of this sector in the long term.

Source: https://kumparan.com/kumparanbisnis/bahlil-tinjau-progres-pabrik-kertas-di-riau-nilai-investasi-tembus-rp-33-4-t-20yuEMyGK4M