Sinar Mas Group's $3 Billion Pulp and Paper Mill to Start Production by Mid-2016
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According to a report yesterday by the Jakarta Globe, Jakarta, Indonesia, Sinar Mas Group, one of the country's largest conglomerates, is on track to complete its Rp 40 trillion ($2.9 billion) pulp and paper mill by mid-year after receiving the government's green light to fast-track imported machines, a top executive said on Tuesday.
The mill, which is operated by a subsidiary of OKI Pulp & Paper Mills, has been touted to be the largest in Asia, boasting up to 2 million metric tpy of pulp capacity. OKI Pulp & Paper Mills focuses on producing tissue paper, packaging, and other paper products.
"Hopefully, we will start some commercial production in the middle of the year, and then we'll see how the business goes from then. We may do a trial run first. This is a new factory, after all," Suhendra Wiriadinata, a director at OKI's majority shareholder Asia Pulp & Paper (APP), told reporters in Jakarta last week.
Most of the plant's production will be shipped overseas, according to Suhendra.
OKI Pulp & Paper Mills focuses on producing tissue paper, packaging, and other paper products.
It's among 24 companies to recently receive a new fast-track customs clearance treatment for its imported machines from the Indonesia Investment Coordinating Board (BKPM) and the Finance Ministry's customs and excise department.
"We received the green channel from the BKPM to ship in our machines," Suhendra said, referring to a channel that allows imported goods to pass directly through customs.
