PT Kiani Kertas to start commercial production soon<\/p>\n
JAKARTA (JP): PT Kiani Kertas, a subsidiary of the Kalimanis
\ngroup owned by Indonesia's timber baron Muhammad \"Bob\" Hasan,
\nwill start commercial operation in two weeks with an initial
\nproduction capacity of 30,000 tons of pulp per month, a senior
\nexecutive said.<\/p>\n
Kiani Kertas' president, Suharsono Kramadibrata, said
\nyesterday that production would be gradually increased to the
\nplant's full capacity of 41,000 tons per month, or 500,000 tons
\nper annum.<\/p>\n
Speaking to reporters after the company's hearing with the
\nHouse of Representatives Commission X for national development,
\nhe said the company's trial operation was underway.<\/p>\n
\"We are still in the testing period and commercial production
\nwill start two weeks from now,\" said Suharsono, who replaced
\nMachnan R. Kamaluddin as company president in June this year.<\/p>\n
According to earlier reports, Kiani Kertas, dubbed the largest
\nsingle-line pulp mill in Southeast Asia, spent around 2.5 percent
\nof its US$$1.2 billion investment for the construction of a water
\ntreatment plant.<\/p>\n
The impact of the rupiah upheaval on the company's financial
\nperformance would be insignificant because most of the company's
\nproduction would be exported, he said.<\/p>\n
Suharsono said around 95 percent of the company's pulp
\nproduction would be exported to Japan, the United States, South
\nKorea, Australia and Europe.<\/p>\n
\"Since most of the product is for export, our revenue will be
\ngenerated in dollars too,\" he said.<\/p>\n
Bob Hasan, a close associate of President Soeharto, said
\npreviously that around $700 million of the project's financing
\nwas derived from equity and $600 million from bank loans.<\/p>\n
Special fund<\/p>\n
The government has allocated around Rp 250 billion from
\nreforestation funds -- a special fund collected from timber
\ncompanies to finance reforestation programs -- as financial
\nassistance for Kiani. But Suharsono said his company had not used
\nthe funds.<\/p>\n
\"No, we have not used the funds yet,\" he said.<\/p>\n
Kiani Kertas' pulp plant occupies a 3,400-hectare site in
\nBerau regency, East Kalimantan.<\/p>\n
Suharsono said yesterday that raw materials for the plant
\nwould be supplied by a timber estate owned by PT Tanjung Redeb
\nHutani, a joint venture between Bob Hasan and state-owned PT
\nInhutani I.<\/p>\n
He said since Tanjung Redeb would be able to feed the pulp
\nplant until 2001, the mill would initially use mixed local
\nhardwood as raw material. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-kiani-kertas-to-start-commercial-production-soon-1447893297",
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