Strong growth at FajarPaper driven by new capacity and market-leading lightweight paper sales

All figures are Audited and quoted in Rp billions unless otherwise stated

Year ending

December 31st 2016

Year ending

December 31st 2017

Net Sales



Gross profit



Operating income




EBITDA in USD millions





Net Income



Jakarta, 26 February, 2018: PT Fajar Surya Wisesa Tbk (FASW.JK), also known as FajarPaper, has released its audited financial statements for the years ended 31st December, 2017 and 2016. The financial statements can be found by following this link:


Topline growth


The company achieved substantial sales growth of 25% to Rp 7.3 trillion in 2017, having successfully launched additional capacity of 300,000 tons per annum which helped strengthen domestic market share, and supported an export drive into China in the second half of the year. Both gross and operating margins have been sustained, with a rise of 20% in operating income to Rp 1.2 trillion.


Market leadership


The company has continued to grow its sales using the PerformaMedium and PrimeLiner ranges of high-performance, lightweight packaging paper that facilitates valuable efficiencies and cost savings, together with being fully recyclable. As Indonesia’s domestic retail sector and FMCG continues to evolve with growth of over 20% in e-commerce sales and on demand deliveries, the company’s new paper range is proving ideal for use in modern packaging and logistics systems.


This resulted in a rise of 14% in sales volume for the year to 1,063,590 tons, supported by an increase in average sales prices of 10%. An export drive, primarily to China, contributed 15% of total annual revenue, up significantly compared to 2016.


International market developments


Over the first half of the year, waste paper prices – both domestic and imports – increased.  In the second half of the year international market supply conditions changed, sending waste paper prices lower.  The company was able to respond, leveraging its large-scale capacity, in time with the new capacity coming online during the year, to benefit from the weakening of international recovered paper prices.




A new paper machine, PM8 with 300,000 tons capacity, which can be entirely dedicated to meeting demand for lightweight packaging paper, was commissioned in mid year. In the year ahead, the company will be able to take advantage of a full 12 months of production of PM8. Total available manufacturing capacity stands at 1,300,000 tons per annum.  




Net income for the year was Rp 596 billion, or Rp 240 per share. The net income for the year has taken into account of higher interest cost on outstanding loans, a swing in foreign exchange costs (from Rupiah’s gains against the US Dollar in 2016, to a modest loss in 2017), as well as higher taxation. 


Financial position


The completion of the latest capacity expansion, including a new 55 mega watt power plant, means the company is now able to focus on deleveraging. At year-end, the company’s Debt to EBITDA ratio improved from 3.4 to 3.0 times, alongside sound debt service coverage with all loan covenants comfortably met. 




Our future focus will be on sustaining our leading position. Prospects for the company in the year ahead are encouraging, as GDP growth is expected to continue to improve from 5.05% in 2017 to 5.4% by the end of 2018. FMCG consumption is on the rise, specifically in the food sector, accounting for 70% of the company’s domestic sales, with rolling yearly growth of 10% in 2017. E-commerce is growing significantly, a market estimated to be worth US$ 7 billion in 2017, and a market which the company continues to pursue. The medium term outlook for the Asia Pacific region remains robust, with accelerating urbanisation, demographic shifts and rising middle class buying power, growing consumer awareness of the value of recycling, and the use of technology in e-commerce retailing, leveraging sophisticated supply chains and door to door deliveries.   




To learn more about this press release, please contact FajarPaper’s Investor Relations Department, by sending your inquiries to, or contact +62 21 344 1316.

More information can also be found from our website

FajarPaper is a Forest Stewardship Council-Chain of Custody (FSC-CoC), ISO 9001, ISO 14001, and OHSAS 18001 certified, as well as a Clean Development Mechanism (CDM) and Joint Crediting Mechanism (JCM) registered company, catering in high capacity and continous delivery of packaging paper supply, and providing up-to-date innovation and quality packaging paper products.