Plastic Bans and High Costs Benefit Indonesian Paper Packaging Firm

Jakarta, CNBC Indonesia - Paper packaging producer PT Paperocks Indonesia Tbk. (PPRI) is benefiting from government programmes that diversify packaging from plastic to environmentally friendly materials. As a result of these policies, PPRI recorded sales of Rp154.8 billion in 2025, an increase of 4.9% compared to the same period the previous year, which was Rp147.6 billion. PPRI also posted an increase in gross profit to Rp23.7 billion. “This increase in sales is inseparable from the government programme to diversify into environmentally friendly packaging raw materials. Moreover, plastic prices have recently soared due to global supply chain disruptions,” said Irsyad Hanif, President Director of Paperocks, in Jakarta on Monday (22/6/2026). In the second quarter of 2026, PPRI projects the company’s financial performance will reach a sales target of Rp80.53 billion, an increase of 2.7% compared to the revenue realisation in the same period the previous year. Gross profit is targeted to reach Rp12.88 billion, an increase of 6.01% compared to the company’s gross profit realisation in the same period the previous year. “As for profit for the year, the company projects a figure of Rp1.89 billion, an increase of 5.07% compared to the realisation of profit for the year in the same period the previous year,” explained Irsyad. To achieve these targets, Irsyad said the company will create environmentally friendly products. The company will also continue to optimise existing markets and be more aggressive in adding new markets. Irsyad explained that, based on data from the Ministry of Industry, the gross domestic product (GDP) of the national food and beverage industry grew by 6.49%. This figure is higher than the GDP growth of the non-oil and gas processing industry, which was 5.58%. “Indonesia’s food and beverage industry has great growth potential because it is supported by natural resources and continuously increasing domestic demand,” said Irsyad. The Ministry of Industry (Kemenperin) has begun encouraging the diversification of packaging raw materials to reduce the industry’s dependence on plastic. Currently, the share of paper packaging has reached around 28% of the total packaging industry, while flexible plastic-based packaging still dominates at up to 48%. The company has announced an increase in the percentage of environmentally friendly materials used in its marketed products. Irsyad said PPRI focuses its business on the packaging industry using paper as the main material, which is a renewable resource.