Semi-bleached or bleached kraft or soda wood pulp excluding dissolving grades market in Indonesia

Earlier Report Observations

Between 2018 and 2020, Indonesia's bleached kraft pulp market experienced notable fluctuations, starting at 4.52 million tons. The industry was underpinned by consistent government support aimed at creating a conducive business climate and ensuring legal certainty for raw material sourcing from Industrial Plantation Forests (HTI). This foundation, coupled with fiscal and non-fiscal incentives and a push for digital transformation in 2020, helped the market recover to 4.49 million tons after a dip, as enhanced operational efficiency supported domestic production volumes.

Market dynamics shifted significantly in 2021 and 2022. Strong export performance, which contributed 6.22% to non-oil and gas exports, drew volume away from the domestic market, reducing its size to 4.3 million tons in 2021. The following year, however, saw a sharp rebound to 5.13 million tons. This growth was directly fueled by a substantial government procurement program allocating IDR 400 trillion for domestic goods, including pulp and paper products, which boosted local demand. Concurrently, new investment projects added 1.06 million tons of kraft pulp and 600,000 tons of BCTMP capacity, expanding the production base to meet this surge.

In 2023, the domestic market volume receded to 4.87 million tons as major producers like Indah Kiat Pulp & Paper focused on export markets, which accounted for over half of their revenue. The industry continued to evolve, with companies developing downstream and eco-friendly packaging products like flexible packaging and paper bowls to diversify demand. Furthermore, announced plans for a new 61,000-ton-per-year kraft and bleaching pulp mill in East Kalimantan, scheduled for 2025, indicate ongoing capacity expansion efforts within the sector.

Production bleached kraft or soda pulp in Indonesia

In kind, 2018-2021, K t

From 2018 to 2021, Indonesia held the fourth position globally in the production of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades.

Top producers of bleached kraft or soda pulp, 2018-2021

World map of production of bleached kraft or soda pulp, 2018-2021

Indonesia's production of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, grew for the second year in a row. In 2021, the country produced 8 598 K t, showing minimal change from 2020. Over the period from 2018 to 2021, production rose by 9.5%, which translates to an average annual growth rate of 3.1%. The lowest production volume was in 2019 at 7 807 K t, with the largest decline that year at 0.6%. The most significant increase occurred in 2020, reaching 10.1%.

Annual dynamics of production in Indonesia in kind, 2018-2021, K t

In value, 2018-2021, M $ US

Following a two-year decline, Indonesia's production of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, rebounded in value terms. In 2021, the output was valued at 4 407 M $ US, marking a strong increase of 17.7% compared to the previous year. From 2018 to 2021, however, production value fell by 8.8%, with a compound annual growth rate of -3.0%. The lowest value was recorded in 2020 at 3 744 M $ US, and the largest drop was in 2019 at 15.4%.

Annual dynamics of production in Indonesia in value, 2018-2021, M $ US

Exports bleached kraft or soda pulp from Indonesia

Exports in kind, K t

Indonesia's exports of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, expanded for the third consecutive year. In 2021, the country exported 4 880 K t, reflecting a modest year-over-year rise of 0.9%. Between 2018 and 2021, exports grew by 19.4%, equivalent to an annualized rate of 6.1%.

Annual dynamics of product's exports from Indonesia in kind, 2018-2021, K t

From 2018 to 2021, China was the leading buyer of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, from Indonesia, making up 71.1% of total exports in volume. The remaining share was distributed among other countries.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Indonesia in kind, 2018-2021

Exports in value, M $ US

After a two-year decrease, Indonesia's exports of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, recovered in value. In 2021, exports amounted to 2 502 M $ US, showing a robust year-over-year increase of 18.6%. The lowest value was in 2020 at 2 108 M $ US, with the largest decline that year at 12.3%.

Annual dynamics of product's exports from Indonesia in value, 2018-2021, M $ US

During 2018–2021, China dominated Indonesia's exports of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, in value terms, accounting for 72.5% of total flows. The rest was spread across other trading partners.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Indonesia in value, 2018-2021

Imports bleached kraft or soda pulp to Indonesia

Imports in kind, K t

In 2021, Indonesia imported 578 K t of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, representing a decrease of 21.0% from the previous year. Over the 2018–2021 period, imports declined by 23.6%, with a compound annual growth rate of -8.6%. The largest increase was in 2020 at 0.8%.

Annual dynamics of product's imports to Indonesia in kind, 2018-2021, K t

From 2018 to 2021, Canada, the United States, and France were the primary sources for Indonesia's imports of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, in volume terms. Canada accounted for 34.1%, the United States for 28.7%, and France for 11.5%, together making up 74.2% of total imports.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Indonesia in kind, 2018-2021

Imports in value, M $ US

After two years of decline, Indonesia's imports of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, saw a slight upturn in value. In 2021, imports were approximately 449 M $ US, indicating a small year-over-year improvement of 2.0%. However, from 2018 to 2021, import value dropped by 29.2%, with a compound annual growth rate of -10.9%. The lowest value was in 2020 at 441 M $ US, and the largest decrease was in 2019 at 17.0%.

Annual dynamics of product's imports to Indonesia in value, 2018-2021, M $ US

In the 2018–2021 period, Canada, the United States, and France were the key sources for Indonesia's imports of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, in value terms. Canada held a 37.5% share, the United States 27.7%, and France 10.5%, collectively representing 75.7% of total import flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Indonesia in value, 2018-2021