BKPM supports incentives to PTTeL for ecological considerations in new investments

The Investment Coordinating Board (BKPM) has approved the granting of a government incentive to PT Tanjungenim Lestari Pulp and Paper to Improve Pulp mill.
PT TeL will install Cooking Technology with the Latest G3 (3rd Generation) Compact Cooking Machine from Valmet-Filandia.

Starting from the first quarter to the end of2021, PT TEL is still committed to Invest in Muara Enim south Sumatera Selatan. In 2021 PT TEL will implement an improvement in pulp cooking tech­ nology from lo-solid system to Com­ pact cooking G3 (3rd generation) which designed and made by PT Val­ met from Finland. The investment in TEL, which is val­ ued at around US $ 17 million, re­ ceived a welcome and support from the Investment Coordinating Board (BKPM) and categorizes it as a “restructuring of machinery” that can be given government incentives in the form of exemption from im­ port duties and other facilities.

PTTEL’s new equipment will exceed the G2 technology commonly used by other pulp mills. PTTEL is the first pulp mill in Indonesia which use G-3 technology. The President Director of PTTEL, Hiroyuki Moriyasu comments that “Our target in the cooking system upgrade is to reduce our unit wood consumption by increasing the pulp yield and reducing reject content, to enhance our pulp quality and to lower the specific load on the recovery boiler. By upgrading to valmet’s latest technology, we will significantly increase the pulp yield which will reduce our operating costs and al­ low us to be capable to increase the overall mill pulp production. More over, with the two new sets of baling equipment, we aim at improving availability and production stability. We have logically selected the most advanced and reliable technology that supports us in achieving our target in this project”.

In addition, BKPM also encourages that at the same time as the imple­ mentation of this project, job and business opportunities can be created for the empowerment of MSMEs and national local entrepreneurs to participate in realizing this good intention.

The benefits of th is investment in PTTEL which is supported by the gov­ ernment, in the short and long term, are not only for the company but also for the related business world and the surrounding community because of
the assurance of business continuity and relationships.

Even under the current Covid-19 pandemic which has been going on for the past year since March 2020, it has not dampened TEL’s determination to continue investing in Muara Enim South Sumatra, Indonesia, and the above investments are one of the several plans which the company is plan­ ning to meet the growing pulp de­ mand.

PT TEL will contribute to domestic development through environmentally friendly pulp production.