As the global shift towards sustainability gains momentum, consumers are increasingly prioritizing eco-friendly packaging options. This is evidenced by the projected annual growth of over 3 percent in paperboard demand in Asia, extending through to 2030.
In response to this growing demand, APRIL Group, a leading producer of bio-based pulp and paper, has embarked on a major diversification initiative. Earlier this year, the company inaugurated its cutting-edge paperboard manufacturing plant in Riau, Indonesia.
APRIL Group's significant investment of Rp 33.4 trillion into this new facility, managed by PT Riau Andalan Paperboard International (RAPI), marks a pivotal step in its strategy to diversify into high-value products and sustainable business practices. This facility represents one of Sumatra's largest manufacturing investments in the past decade and is positioned next to PaperOne's well-known production site, which serves over 110 countries. With an annual capacity of 1.2 million tons, the plant will produce recyclable and biodegradable products under the BoardOne™ and SilverPak brands.
During the groundbreaking ceremony in 2021, Coordinating Minister for Economic Affairs Airlangga Hartarto highlighted the investment's importance. He noted that APRIL’s initiative would enhance local community welfare, stimulate national economic growth, and aid in the recovery of national exports by improving market access and product competitiveness.
The new facility is also a testament to Indonesia's shift towards a lower-carbon economy. By focusing on bio-based packaging materials, BoardOne will offer sustainable solutions that adhere to high-quality and safety standards, both domestically and internationally. The plant is expected to generate over 600 new jobs upon full operation.
APRIL's commitment to environmental sustainability is evident in its product offerings, which include folding boxboards, cup stock, and art boards (C2S). These products are produced from high-quality fiber sourced from APRIL’s sustainably managed plantations, certified under the Programme for the Endorsement of Forest Certification (PEFC). The facility’s fiber supply will primarily come from increased productivity in existing plantations, in line with APRIL’s sustainability policy.
This new venture aligns with APRIL’s APRIL2030 Sustainable Growth commitment, reflecting the company’s dedication to sustainable business practices, circularity, and responsible production.
“This diversification enhances our ability to grow our business sustainably, aligning with our sustainability goals and APRIL2030 targets,” said Sihol Aritonang, President Director of PT Riau Andalan Pulp and Paper, APRIL Group’s operating arm.
This investment not only contributes to Indonesia’s economy by targeting global export markets but also supports APRIL’s role within the Royal Golden Eagle (RGE) group in advancing Indonesia's economic development.
