APRIL GROUP contributed USD32.3 billion to Indonesia's GDP from 2016 to 2022

Mon, 24 Jul 2023 17:28:00 +0800

• In 2022, APRIL Group's contribution to GDP was equivalent to 0.55% of National GDP, generated by the supply chain flow of APRIL Group's core activity, namely pulp and paper production, in Pangkalan Kerinci, Pelalawan Regency, Riau.
• In 2022, APRIL's pulp and paper mill and plantation operations created employment opportunities for 257,436 people nationally and 146,986 people in Riau Province.
• APRIL's operations also had a significant impact on Riau Province's economic recovery, particularly in Pelalawan District; was also a key driver for the Gross Regional Domestic Product (GRDP) growth recovering from the pandemic.

SINGAPORE, July 24, 2023 /PRNewswire/ -- A new study released by the Institute for Economic and Social Research, Faculty of Economics and Business, University of Indonesia (LPEM FEB UI), shows that APRIL Group's operations in the period 2016-2022 contributed significantly to Indonesia's economic growth and served as a catalyst for economic recovery in Riau Province in the wake of COVID-19 pandemic. APRIL is a member of the RGE group of resource-based companies founded by Sukanto Tanoto.

At the national level, the LPEM FEB UI research shows that APRIL Group's operations have a multiplier effect that contributed to an additional Gross Domestic Product (GDP) of IDR484.3 trillion, which is around USD32.3 billion over the 2016-2022 period. The research results also show that in 2022, APRIL Group's operations and product sales created employment opportunities for 257,436 people and contributed IDR8.44 trillion to state fiscal revenues from 2016 to 2022.

"In 2022, APRIL's contribution to Indonesia's GDP was equivalent to 0.55% of national GDP. This finding shows that APRIL is not only one of the major players in the pulp and paper industry, but also a significant economic driver in Indonesia," said Uka Wikarya, Head of the Regional and Energy Resources Policy Research Group at LPEM FEB UI.

In Riau Province, APRIL contributed IDR245.6 trillion to GRDP over the period of 2016-2022. In terms of job creation, APRIL Group provided employment opportunities for 146,986 people in 2022.

Furthermore, Uka said, "At the regional level, APRIL stands as an important pillar of economic resilience and recovery, particularly in the aftermath of the pandemic as it plays a crucial role in fostering economic growth and fosters the creation of robust employment opportunities."

During the pandemic in 2021, the economy in Pelalawan District, where APRIL is located, grew by 1.82% to 4.07%.

This achievement can be attributed to APRIL's continued positive momentum across its operations and its new investment in a sustainable paperboard mill, amounting to IDR33.4 trillion at the end of 2021.  

The research also found that APRIL Group's operations had the following major macroeconomic and fiscal impacts over 2016-2022:

• Contributed IDR484.3 trillion to the national GDP and IDR245.6 trillion to Riau Province's GRDP.
• In 2022, the company generated employment opportunities for 257,436 people nationwide, including 146,986 people in Riau Province.
• Every one million rupiah of APRIL's pulp and paper sales generates an economic output of IDR3.48 million at the national level and IDR2.27 million in Riau Province.
• Every 10 additional jobs at APRIL create 57.6 jobs nationally and 40.4 jobs in Riau Province.

APRIL's CSR expenditure of IDR618 billion helped to increase household income by IDR210 billion in the five districts where the CSR initiatives were implemented: Pelalawan, Kuantan Singingi, Siak, Kampar, and Meranti Islands.

APRIL also contributed to state revenue (fiscal) through tax and non-tax obligations amounting to IDR8.44 trillion at national scale. APRIL's operations also contributed IDR1.63 trillion to the revenue of all local governments in Riau Province.

Sihol Aritonang, President Director of PT Riau Andalan Pulp and Paper, an operating arm of APRIL Group, expressed appreciation for the latest LPEM UI study. "This study strongly affirms APRIL's significant impact on economic growth and further reinforces our commitment to support sustainable economic growth through APRIL's entire production chain, which includes providing positive benefits to the community in line with APRIL2030 sustainability commitments," Sihol said.

In 2020, APRIL Group launched APRIL2030 - a set of transformative commitments for the next 10 years. These commitments aim to contribute to climate, nature and communities while growing the business sustainably. One of the commitments - Inclusive Progress - seeks to eliminate extreme poverty within a 50-kilometre radius of APRIL's operations. APRIL Group also remains committed to innovating and strengthening investments that are in line with the government's priority and agenda in advancing the green economy and sustainable developments in Indonesia.

The Macroeconomic and Fiscal Impact Research conducted by LPEM UI used an economic multiplier model based on the 2016 Inter-Regional Input-Output (IRIO) Table and the 2016 Pelalawan Input-Output Table. Fiscal impacts were calculated using a fiscal allocation model developed by LPEM-FEB.