Despite Indonesia’s pulp and paper industry having experienced ups and downs, affected by challenges from both within and outside the country, one thing that is certain is that the industry’s supply chain remains supportive of livelihoods and brings prosperity to communities in surrounding areas.
Government data shows that the pulp and paper industry contributes 6.7 percent of national manufacturing industry gross domestic product (GDP) and last year, it contributed US$ 3.9 billion (non-oil export) to the country’s exports.
As part of this economic benefit, the government data shows that the industry has created jobs for 260 thousands direct jobs and 1.1 million indirect jobs throughout the value chain.
The benefits of the industry’s presence have also been felt by Sulaiman, who established his own company, Rifky Pratama Sanjaya, which supplies 200 tons of cocopeat per month to Riau Andalan Pulp and Paper (RAPP) – one of the biggest pulp and paper producers in Indonesia that uses technologically advanced and efficient processes.
“I became [part of the] RAPP supply chain in 2012. I used to work as a contractor on a government project before this,” said the resident of Pangkalan Kerinci in Riau Province’s Pelalawan district.
The father of two explained that as a producer of cocopeat, which is made from coconut husks and used as a planting medium to grow the seeds of Acacia and Eucalyptus trees, he employs 40 staff members, spread out in Pangkalan Kerinci and Lampung Province, from where he gets his material.
Most residents of Pangkalan Kerinci, a previously small village in the Sumatran rainforest, used to rely on the farming sector, or were fishermen working on the nearby Kampar River.
With the presence of major pulp and paper companies, including RAPP, the area has grown and become the district capital, which is now home to more than 150,000 people.
Sulaiman, who left his job to focus on supplying cocopeat to RAPP, has deep appreciation for the opportunities the company has given the local community.
“RAPP doesn’t give the capital for investment, but it made a recommendation to Bank Mandiri and Bank Rakyat Indonesia,” Sulaiman said. He added that he secured up to Rp 1 billion ($75,000) in loans from the two banks, which he used to buy machinery to produce cocopeat, build a warehouse in Pangkalan Kerinci and for working capital.
more at: http://jakartaglobe.id/business/pulp-and-paper-industry-fosters-local-entrepreneurship/