ALDO Strengthens PT Eco Paper’s Business of Recycled Brown Paper Production

Thepresidentpost.id - Jakarta, September 25th 2023 – PT Alkindo Naratama Tbk (ALDO), a listed company engaged in the integrated paper and chemical business, plans to inject additional working capital of around IDR 40 billion into its subsidiary PT Eco Paper Indonesia (EPI) to strengthen its recycled brown paper production business.

"The capital injection to strengthen EPI’s business was carried out because we see bright prospects from the growth in demand for recycled paper. Increasing consumer awareness of the importance of using environmentally friendly packaging has paved the way for the growth of sustainable packaging products. Today's increasingly conscious consumers prefer brands and products that can help them reduce plastic waste, thereby actualizing their sense of responsibility towards the environment. Meanwhile in the industry’s side, more and more environmentally conscious brands are choosing to use company products that are based on recycled paper, so they can show customers the value they bring," said ALDO President Director, H. Sutanto.

With ALDO’s injection funds, EPI will receive additional working capital which will be used to procure raw materials and chemicals. It is expected that this capital injection will strengthen production activities to generate business income. In this case, the capital injection transaction which is planned to be carried out in stages has started on September 20 2023.

EPI itself is currently the largest contributor to the ALDO’s consolidated sales, with a contribution of around 51%. Even though there are currently challenges in the form of global oversupply affecting the paper and packaging industry, the Company remains optimistic that the trend of increasing demand for environmentally friendly paper packaging will continue. Therefore, when the time comes when market conditions return to stability, ALDO through its subsidiary will be ready to meet the increased deman.

Meanwhile, the operation of new production machines in the second quarter of this year has successfully boosted EPI sales in the first Semester of 2023. In the January-June 2023 period, EPI sales grew 43% YoY to IDR 392.06 billion in Semester 1 2023. If we look at each quarter, EPI sales grew 5% QoQ to IDR 200.84 billion in Q2 2023.