President of Indonesia Inaugurates Country’s Largest Integrated Viscose Rayon Production Facility

• Investment of Rp. 15 trillion
  (USD1,1 billion) in facility
• Supports development of national
  textile industry and ‘Making Indonesia 4.0’ roadmap

PANGKALAN KERINCI, INDONESIA – Media OutReach – 21 February 2020 – The President of Indonesia, Joko
Widodo, today inaugurated Indonesia’s
largest integrated viscose rayon production facility, injecting a boost for the
country’s textile sector and the Indonesian Government’s industrial 4.0 development
strategy.

The President of Indonesia, Joko Widodo, pictured today at the ceremony to inaugurate Indonesia’s largest integrated viscose rayon production facility. The new Asia Pacific Rayon (APR) facility is located in Pangkalan Kerinci, Riau province, Sumatra. APR is part of the RGE (Royal Golden Eagle) group of resource-based manufacturing companies. Also pictured are RGE Founder and Chairman Sukanto Tanoto, and Anderson Tanoto, Director, RGE.

The President of Indonesia, Joko Widodo (centre), pictured during a tour of the new Asia Pacific Rayon (APR) production facility in Pangkalan Kerinci, Riau province, Sumatra, with Anderson Tanoto, Director, RGE (left), RGE Founder and Chairman Sukanto Tanoto (centre/left), and the Minister of Industry, Agus Gumiwang Kartasasmita (right). APR is part of the RGE (Royal Golden Eagle) group of resource-based manufacturing companies. President Widodo today inaugurated the new APR facility, which is the largest integrated viscose rayon production facility in Indonesia.

 

The new Asia Pacific Rayon (APR) facility is located in the same
production complex as APRIL Group in Pangkalan Kerinci, Riau province, Sumatra.
This co-location allows integrated operations where renewable plantation pulp
supply from APRIL feeds directly to APR for viscose rayon production. The new
operation represents a total investment of approximately Rp.15 trillion (USD1.1
billion).

 

The APR facility has an annual production capacity of 240,000 tons.  The inauguration ceremony included the signing
of a plaque by President Widodo and the symbolic sealing by the President of an
export container with 10,190 tons of viscose rayon fibre for shipment to Turkey,
one of APR’s key export markets, and another 12,000 tons to Central Java.  

 

The ceremony was also graced by the Minister of Industry, Agus
Gumiwang Kartasasmita, the Minister of Trade Agus Suparmanto, the Governor of
Riau, Syamsuar, RGE Founder and Chairman Sukanto Tanoto, and Anderson Tanoto, Director,
RGE.

 

Speaking at the inauguration,
President Widodo welcomed APR’s investment in the development of the national
textile industry. The role of the private sector was influential in driving
economic growth, alongside the stimulus provided by the Government, he said.
“Our garment industry should be greater than Vietnam. We already have our own
raw materials here, such as viscose rayon, to support the industry,” he said.

 

Economic
Contribution

APR’s business aligns with President Jokowi’s vision to encourage more
value-added investment in the nation and the strengthening of the national
textile and textile product (TPT) industry, as set out in the Making Indonesia
4.0 Road map. In addition, the production of viscose rayon will reduce
dependence on the import of textile raw materials, particularly cotton, to meet
domestic demand.

 

Agus Gumiwang Kartasasmita,
Minister for Industry, said: “By optimising the availability and use of
raw materials originating from Indonesia, we can boost the performance of our
textile sector. This is just one of several steps we are taking to continue to
improve the performance and competitiveness of the labour-intensive industry.”

 

Basrie Kamba, Director APR, said: “The presence of APR
will have a positive impact on employment and business opportunities for small
and medium-sized businesses in the upstream and downstream sectors of the
textiles and textile products industry. We are honoured and grateful to
President Jokowi for inaugurating our new facility”.

 

In addition to Turkey, APR’s products are exported to 14 other countries
including key textile centres such as Pakistan, Bangladesh, Vietnam, Brazil, and various parts
of Europe. The products also support an expanding Indonesia fashion industry.

 

It is estimated that APR may generate foreign exchange revenues exceeding
Rp1.77 trillion (USD130 million) annually, and reduce dependence on imported
raw materials by about Rp2.01 trillion (USD149 million) annually.

 

Sustainable
Production

APR produces sustainable viscose rayon fiber from renewable, traceable
and biodegradable raw materials. The company’s raw materials are supplied by
APRIL Group, which is recognised as a responsible pulp producer through
national (Timber Legality Verification System) and international (Program for
the Endorsement of Forest Certification/PEFC) certifications.

 

APR is the first viscose rayon manufacturer in Indonesia to receive the
internationally recognised STeP certification from OEKO-TEX ®, an independent Swiss-based
certification organisation, for the responsible manufacturing of viscose staple
fibre.

 

APR has launched the
‘Everything Indonesia’ campaign to promote the sustainable sourcing and
production of fashion from Indonesia. The aim is to support Indonesia’s
resurgence as a global centre for textile manufacturing, and catalyse
home-grown fashion design and creativity.

About Asia Pacific Rayon:

Asia Pacific Rayon is the first
fully integrated viscose rayon producer in Asia. The factory with 240,000 ton
capacity, located in Pangkalan Kerinci, Riau, uses the latest production
technology to produce high-quality rayon to meet textile needs. APR is
committed to become a leading viscose rayon producer that has the principles of
sustainability, transparency and operational efficiency, serves the interests
of the community and the country, and provides value to customers. APR is part
of the RGE (Royal Golden Eagle) group of resource-based manufacturing companies.