Finland Invests $1.75 Billion in Indonesia`s Pulp, Paper Industry
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According to Tempo (Jakarta, Indonesia) in a recent report, Indonesia and Finland are exploring to cooperate in developing the manufacturing industry in Indonesia.
Industry Minister Airlangga Hartarto said on October 8 that the areas with potentials for partnership include agro-based industries—particularly pulp and paper, "and to encourage the development of a science and technology park".
According to the Investment Coordinating Board (BKPM), in 2018 Finnish investors have invested US$1.75 million in two projects for the paper, paper and printing products industries. The investment is expected to create jobs for domestic workers. According to Airlangga, the pulp and paper industry is one of the sectors whose development is prioritized according to Government Regulation No.14 2015 on the National Industrial Development Master Plan.
"Indonesia has comparative advantages, especially related to raw materials, where our crop productivity is much higher than that of competing countries with subtropical climates," said Airlangga.
The minister also said that Indonesia's pulp industry is ranked 10th in the world. The paper industry is ranked sixth. In Asia, Indonesia's Indonesian pulp industry is the third largest after China, Japan and India.
Based on its export performance, in 2017, the pulp and paper industry contributed US$5.8 billion to the country's foreign exchange (forex) revenue.
