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sia Pulp and Paper (APP) expects a windfall despite the weakening rupiah as it continues to reap the benefits of the rise in exports of its products.

Suhendra Wiriadinata, APP Corporate Affairs and Communications Director, said that the economic turmoil in fact could be a blessing disguise for the company as it benefited from decreasing production cost of pulp and paper.

'€œ[The economic situation] has not hampered our exports as we record our transaction in dollar. In fact, production costs deflated with the dwindling currency,'€ Suhendra told reporters on Thursday.

Suhendra cited how the company had previously spent US$1,000 on materials for production, but that slipped to only $909 when the rupiah dropped to 11,000 per dollar as of Thursday.

He said that APP '€” which is subsidiary of the Sinar Mas Group '€” exported 70 percent of its total production.

With promising exports, Suhendra said that the company was optimistic it would meet its target and see exports grow by 5 percent to hit 10 percent this year.

Suhendra was certain that the export market would keep growing now that the company has added capacity of its subsidiary, PT Indah Kiat Pulp and Paper, which adds 500,000 tons to its annual
production.

He also said that as 60 percent of its exports were absorbed by Asian countries and 17 percent by
African countries, most of which are economies with growing needs and demands, the company had the possibility of more opportunities to export to those regions.

Suhendra cited how developed countries consume 400 kilograms paper per capita, while developing countries like China consume less than 100 kilograms of paper per capita.

In addition, the recent decision by Japan to remove its dumping allegation against Indonesia '€” as no there was no indication of unfair practice '€” will likely open more access to East Asia.

The Japanese anti-dumping authority commenced the probe into the case on June 29 following a request by eight producers, including Nippon Paper Industries Co. Ltd, Nippon Daishowa Paperboard Co. Ltd and Oji Paper Co. Ltd.

Sinar Mas Group is among the 11 companies that were alleged to have enjoyed the dumping policy.

Indonesia, which is among the top 10 pulp and paper producers in the world, has been hit by recurrent dumping allegations as local manufacturers can produce products efficiently and at a comparatively low cost, partly supported by the tropical climate that reduces the life-cycle of trees.

Industrial forest concessions in the country can generate materials to make paper within four years, lower than other paper producing countries.

Generating around 8 million tons of pulp and paper each year, the country can produce paper for only $200 per ton, according to the Indonesian Pulp and Paper Association (APKI).