RAPP to build new factory in Sumatra

JAKARTA. The country’s major pulp and paper producer, PT Riau Andalan Pulp and Paper (RAPP), plans to spend billions of dollars to set up a new pulp factory in Sumatra, an industry official says.

Industry Ministry director general for base manufacturing industry Panggah Susanto said in Jakarta on Monday that the new facility would be designed to produce long-fiber pulp, which Indonesia imported from countries like Thailand and China.

"This [facility] will be very important for us since our imports at present are sizeable," Panggah said at his office.

Panggah declined to elaborate on when RAPP would begin the construction of the factory.

RAPP, widely known for its flagship paper PAPEROne, has a strong foothold in the domestic market.

It has also reached overseas markets in Asia, Australia, the Americas and Europe. (Linda Yulisman)