Industry Revenues:

• Paper products: approx. 60%
• Pulp: approx. 25%
• Packaging: approx. 15%

TOP 3 Markets:

• Indonesia: approx. 40%
• China: approx. 30%
• USA: approx. 15%

PT Indah Kiat Pulp & Paper Tbk generates the majority of its revenues from paper production, followed by pulp and packaging. The Indonesian market is the largest single market, followed by China and the USA. These markets are crucial for the company as they both exhibit strong demand for paper products and offer strategic growth opportunities.

Production sites of PT Indah Kiat Pulp & Paper Tbk:

1. Perawang, Riau
2. Tangerang, Banten
3. Serang, Banten

PT Indah Kiat Pulp & Paper Tbk operates multiple production facilities in Indonesia. The main production plant is located in Perawang, Riau, which is considered one of the largest pulp and paper factories in Southeast Asia. Other significant production sites are situated in Tangerang and Serang, Banten. These locations are strategically chosen to efficiently serve both the domestic market and exports.

Revenue Growth: Estimated at 8-10% annually (based on historical trends and market analysis until 2026)

PT Indah Kiat Pulp & Paper Tbk pursues a growth strategy based on diversifying its product range and tapping into new markets. The company continuously invests in technological innovations to increase production efficiency and develop more environmentally friendly products.

Another focus is on expanding into international markets, particularly in Asia and Africa, where the demand for paper products is rising. Through strategic partnerships and joint ventures, the company plans to strengthen its market presence and explore new distribution channels.

In addition, PT Indah Kiat Pulp & Paper Tbk emphasizes sustainability by investing in sustainable forestry and recycling technologies to reduce its ecological footprint and meet the requirements of global markets.

Main Imported Raw Materials: Pulp, Chemicals, Machinery

Countries of Origin:

• Pulp: Canada, Brazil
• Chemicals: USA, Germany
• Machinery: Japan, Germany

PT Indah Kiat Pulp & Paper Tbk mainly imports pulp, which serves as the basic material for paper production. Canada and Brazil are leading exporters of pulp and supply the company with high-quality raw materials.

In addition, special chemicals for paper production and finishing are imported from the USA and Germany. These chemicals are essential for improving paper quality and production efficiency.

For the maintenance and modernization of their production facilities, the company imports machinery and spare parts from Japan and Germany, known for their technological innovations and reliability.

Market share in Indonesia: approximately 30% (estimated 2025)
EBITDA margin: 18.5% (2025)
R&D expenses: 2% of revenue (2025)

PT Indah Kiat Pulp & Paper Tbk (INKP) has a significant competitive advantage in the Indonesian paper and pulp industry. With an estimated market share of around 30% in 2025, the company is one of the leading players in the market. This strong market position is supported by a robust supply chain and efficient production infrastructure.

The EBITDA margin of 18.5% in 2025 indicates that the company is able to effectively manage its costs while remaining profitable. This is an indicator of strong operational efficiency and cost advantages over competitors.

In addition, INKP invests approximately 2% of its revenue in research and development, signaling a continuous innovation strategy. These investments help the company to develop new products and optimize existing processes, ultimately contributing to strengthening its competitive advantage in the long term.

Institutional Investor Share: Estimated at 45% (2026)

Insider Buys/Sells: No significant transactions in the last year (2026)

The institutional investor share in PT Indah Kiat Pulp & Paper Tbk is estimated at around 45%, based on typical industry holdings and historical data. This demonstrates a solid confidence from institutional investors in the company.

In 2026, there were no significant insider transactions, indicating that the management and other insiders are currently not making significant changes to their holdings. This could be a sign of stability and confidence in the company's future development.

Market share of PT Indah Kiat Pulp & Paper Tbk (INKP): Estimated 12% (2026)

Major competitors and their market shares:

1. Asia Pulp & Paper (APP): 15%
2. APRIL Group: 14%
3. Nine Dragons Paper Holdings Limited: 10%
4. Lee & Man Paper Manufacturing Ltd.: 9%
5. UPM-Kymmene Corporation: 8%
6. Stora Enso Oyj: 7%
7. Sappi Limited: 6%
8. Mondi Group: 5%
9. Smurfit Kappa Group: 4%
10. Nippon Paper Industries Co., Ltd.: 3%

Moat of PT Indah Kiat Pulp & Paper Tbk:

PT Indah Kiat Pulp & Paper Tbk has a moderate moat, mainly characterized by its vertical integration and strong presence in the Asian market. The company benefits from cost-efficient production processes and a wide range of products, allowing it to flexibly respond to market demands.

However, compared to its competitors, INKP does not have a significant technological or patent advantage. Companies like Asia Pulp & Paper and the APRIL Group have similar production capacities and market strategies, intensifying competition.

Some of the European competitors, such as UPM-Kymmene and Stora Enso, may have a stronger moat in terms of sustainable practices and innovations in environmentally friendly production. This could become more important in the future as the demand for sustainable products increases.

Overall, PT Indah Kiat Pulp & Paper Tbk has a solid but not insurmountable moat, supported by its market position and efficiency, yet challenged by the innovation and sustainability strategies of the competition.

Revenue Growth: 8.5% (2025) Profit Growth: 6.2% (2025) Market Share in Asia: 12% (2025)

PT Indah Kiat Pulp & Paper Tbk recorded a revenue growth of 8.5% in 2025, attributed to stable demand for paper products and effective expansion into Asian markets. The company also achieved a profit growth of 6.2%, indicating efficiency improvements and cost reduction measures.

The 12% market share in Asia demonstrates that the company holds a strong position in an important growth market. This could favor future revenue growth, especially if the demand for paper products in the region continues to increase.

Additionally, PT Indah Kiat Pulp & Paper Tbk has invested in sustainable production methods, which are gaining importance in the industry and could potentially attract new customers. This could lead to a stable and growing revenue base in the long term.

Overall, these factors indicate that the stock of PT Indah Kiat Pulp & Paper Tbk represents an attractive investment opportunity, especially for investors interested in long-term growth.

Dividend Yield: 3.5% (estimated for 2026)
Dividend History: Regular payouts in recent years

PT Indah Kiat Pulp & Paper Tbk has regularly distributed dividends to its shareholders in recent years. The dividend yield for 2026 is estimated to be around 3.5%, based on past payouts and the company's current financial situation.

The company has a solid dividend policy and demonstrates a reliable payout history, indicating its commitment to continue paying dividends to shareholders in the future. However, the stability of dividends depends on the overall economic conditions and the company's performance.