Saturday, January 5, 2008

Indonesia Potential to Command Paper market in the World

Indonesia Potential to Command Paper market in the World
http://www.cappa.or.id/index.php?option=com_content&task=view&id=25&Itemid=1

Indonesia’s Pulp and paper had potential ability to command paper market in the world. Which today still commanded by Finland and South America like Brazil dan Chili. " Indonesia have potential to command pulp and paper market in the world because the big amount of basic material, until pulp and paper factories often charged by international NGO for breaking environtment law but in fact, it just dealings competition" said the director. Riau Andalan Pulp & Paper (RAPP) company, Leonardy Halim in Pangkalan Kerinci, Pelalawan District, Riau. According his opinion, supply of basic material like accasia in Indonesia have crops time only up to 7 years and have a good quality but in Europe and South America, accasia can harvest in 30 years. “with short harvest time but have the same quality with natural accasia so Indonesia have high competitiveness in pulp and paper market in the world, said Leonardy, the branch leader of April group company which central in Singapore. He said that charged breaking environtment law by international NGO caused their export prohibited entrance to Europe in 2003. "To proof the infraction they have to tested the product in Germany which finally unproof violate so their product get premium price in Germany. According his statement, the accusation Infracting environtment law due to pulp and paper Indonesia, as dealings competitionin Europe market. He said that Indonesia had prosperity and used modern technology, so Indonesia have the best basic material in quantity and so quality. In quantity with short distance and harvest time so guarantee the supply of basic material and in quality, accasia planted in Indonesia have long fiber as good as natural accasia so can give a good quality of paper, he said. So, he believe that Indonesian Paper in 2009 will command the world’s market overcome Brazil and Chili. He said that the capacity of RAPP is about 2 million ton per year and its production 1.9 million per year. Meanwhile from the production 85 % for export and 15 % for Indonesia. He expect the production in next year can reach China which estimated fast economic growth. Because of that, April Group as Leader company will invest 360 million US$. Meanwhile The manager of Public Relation of that company, --Fakhrunnas MA Jabbar--said that for Community Development they had built 3000 small community effort from various effort with earnings 3 billion rupiahs a month. According his opinion, small community effort around the factory consist of Farming, wood plantation, handicraft and animal husbandry. So they will keep develop until they can reach export market..

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