The abundance of natural resources as wide as 135 million hectares is not making Indonesia paper production as world first player. In fact Indonesia pulp paper production are only able to occupy ninth place below United States, China and Brazil.
At the moment, there are 70 million hectares of forest from total forest land in Indonesia that could be utilized as industrial production. From that amount, there are 10 million hectares of industrial forest which is permitted, but there are only 3.5 million hectares that are being managed.
While, businessmen are more optimistic than the government, Ministry of Industry, about the prospect of industry in 2015. Indonesia Pulp and paper Association (APKI) convinces that pulp and paper industries are able to grow as high as 12 %.
Vice Chairman of APKI Rusli Tan saw that market potential next year are still big because food and beverage industries are believed to grow well. A lot of paper producer businesses are not supported by printed paper sell but it is supplied by packaging sector.
While, Director of Forest Product and Plantation Ministry of Industry Pranata projected that the pulp and paper industries growth is just 6% - 7% next year. The prognosis is reference to the real production not installed capacity.
“The industrial growth is also depending on market situation, it is hoped that there is not any problem from Jokowi's government. At the moment, main obstacle related with wood legality verification system for paper products,” Pranata said.
“We have to be responsive about dumping and safeguard issues. At the moment we are often being attacked but we are rarely implementing dumping to foreign product whereas our paper industries are quiet suppressed,” said Economist Institute for the Development of Economics and Finance (Indef) Aviliani.