Accurate Data and Accessible Language- Demystifying Indonesi

19 Aug 2014, 5:07 Sinocorrugated

Due to rising demand for fast-moving consumer goods and other household items, Indonesian investment in corrugators continues to increase. In the past year, Indonesia’s production capacity of corrugated paperboard rose 12% and the country’s total annual corrugated industry production capacity reached 5 million tons. 2013 was the fourth consecutive year of double-digit growth for the industry’s production capacity in Indonesia.

“Today, there are about 160 to 170 corrugators of different widths in use in Indonesia,” said Kinardo Ang, President of the Indonesian Corrugated Cardboard Industries Association (PICCI) and General Manager of PT Satyamitra Kemas Lestari (SKL), a corrugated board manufacturing company. “Most recently invested corrugators are between 2.2 and 2.5 meters in width, with speeds of 200m/min or higher. That includes the Mitsubishi and Isowa corrugators, as well as five more from the Chinese mainland.” About 60% of Indonesia’s corrugators are in the Greater Jakarta Area in West Java, 25% are installed in East Java, 5% in Central Java and the rest in Medan (North Sumatra), Palembang (South Sumatra) and Batam, near Singapore.

Most corrugators in Indonesia use lightweight paper. The 125g corrugated paper that was formerly standard use is now being phased out in favor of 112g paper. At the same time, 200g cardboard has been reduced to 150 grams. Most of the resultant paper is made from locally sourced raw materials. Although Indonesia has an annual production capacity of 5 million tons, corrugators are only being used to 60% to 70% of their capacity. Nevertheless, investments are still being injected into carton plants and corrugators in Indonesia.

Apart from investing in new corrugators, many corrugated box manufacturers have invested in post-print production lines over the past few years. The rise in minimum wage has forced more and more corrugated box manufacturers to upgrade and automate machinery, which in turn has led to greater investment in post-print production lines and converting equipment. The most illustrative example of this shift is of corrugated box manufacturers who used to engage 10 to 12 laborers along the assembly line. As levels of automation have increased, so that figure has dwindled to just one or two.

Cardboard production plants and mainstream corrugated box plants pay close attention to energy costs and look to invest in machines with lower energy consumption. PICCI has about 90 members who are corrugated board and corrugated box manufacturing companies. There are still about 500 smaller Indonesian cardboard plants that also make corrugated boxes but are not members of the association.

In Indonesia, most corrugated packaging is used to package food, beverages, electrical appliances and electronics. The industry is very optimistic about the future of the rapidly developing Indonesian corrugated board and carton manufacturing industry. The belief is that a new round of sustained growth of the corrugated box market is on the horizon.

The 2014 Indonesia Corrugated Industry Summit will be held at the Pullman Jakarta Central Park Hotel from September 22 to 24. This Summit is jointly organized by Reed Exhibitions, organizer of SinoCorrugated events, and the PICCI. As part of the global rollout of SinoCorrugated, the Summit is expected to help usher in a new chapter in the development of Indonesia’s corrugated box industry.

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