However, the national pulp and paper industry is facing immense challenges.Jakarta (ANTARA News) - The Industry Ministry has predicted an increase in the national pulp production by eight million tonnes (a 5.26 percent increase) at the end of 2012, given the rise in the demand for raw materials for making paper.
"Given the increase in the demand for raw materials for making paper, the national pulp production will hit eight million tonnes, a 5.26 percent increase, compared to in 2011," said the Director of the Forest and Plantation Product Division of the Industry Ministry, Aryan Wargadalam, on Monday.
In addition, the national paper production is expected to hit 13 million tonnes in 2012, an 8.33 percent increase, compared to in 2011, when the production was around 12 million tonnes.
Meanwhile, the Chairman of the Indonesia Pulp and Paper Association (APKI), Misbahul Huda, said that the demand for paper products during the second semester of 2012 has been on the rise, in light of a new school year, beginning January 2013.
"The paper consumption in Europe and the US has increased towards the winter season," Huda said.
Until the second quarter of 2013, the price of pulp and paper in the international market will hardly increase. "US$ 900 per ton would be quite good," Huda said.
However, the national pulp and paper industry is facing immense challenges, Huda said.
"Nowadays, the national paper producers are facing competition from India and China, which target the Indonesian market as an export destination because the demand in the European and US markets is decreasing," Huda said.
Huda said that China`s national paper production is growing at 30 percent every year and some of its products are exported to Indonesia.
The cheaper, medium quality paper imported from China, the Philippines and Malaysia is another challenge that domestic producers face, Huda said.
(Uu.A059/INE/KR-BSR/H-YH)
Editor: Priyambodo RH
Copyright © ANTARA 2012
