PULP AND PAPER INDUSTRY

COAL DEMAND TREND

Bernard E. Napitupulu
Executive Director of the Indonesian Pulp and Paper Industry Association
Jakarta, December 5th 2023
 TABLE OF CONTENTS
INDONESIAN PULP AND PAPER INDUSTRY
01 OUTLOOK

INDONESIAN PULP AND PAPER INDUSTRY

02 ENERGY CONSUMPTION

ANALYSIS RESULT OF ENERGY DEMAND AND

03 CONSUMPTION IN THE PULP AND PAPER INDUSTRY

04 CONCLUSION
 01
INDONESIAN PULP AND PAPER
INDUSTRY’S OUTLOOK
 Outlook Industri Pulp dan Kertas (IPK) Indonesia

111 industri Kapasitas Terpasang (2022)

6 Terintegrasi
4 Pulp Pulp : 11,45 juta Ton Kertas: 20,65 juta Ton
29 Tidak 54 BB KDU
beroperasi Kapasitas Produksi (2022)
Pulp : 9,80 juta Ton Kertas : 13,04 juta Ton
72 Industri Kertas
Tenaga Kerja (orang)
18 BB Pulp Langsung : 161.000 Tidak Langsung : 1,100,000

Sumber : Kementerian Perindustrian 2023

Peringkat Produksi Indonesia
2021 Kontribusi IPK (2022) terhadap PDB Non Migas 3,99%
Dunia Asia ASEAN Nilai Ekspor 2022 USD 3.69 Milyar USD 4.80 Milyar
Pulp 7 2 1 USD 1.23 Milyar
Pulp
Nilai Impor 2022 USD 1.79 Milyar Kertas
Kertas 5 3 1
Sumber : Badan Pusat Statistik 2023 diolah oleh APKI
Fastmarket RISI 2022
4
 NATIONAL DEVELOPMENT PROJECTION OF PULP AND PAPER INDUSTRY
Pulp Paper
25,000,000 35,000,000
30,000,000
20,000,000
25,000,000
15,000,000 20,000,000
10,000,000 15,000,000
10,000,000
5,000,000
5,000,000
- -
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Capacity
Kapasitas Production
Produksi Capacity
Kapasitas Production
Produksi

Paper consumption per capita

Installed capacity 2030*

34 58
- Pulp 19,2 million tons kg kg
- Paper 29,2 million ton
*Assuming the economic growth is 5%.
2017 2030 2019 2030 5
PULP AND PAPER MAKING PROCESS

6
 INDONESIAN PULP AND PAPER
02 INDUSTRY ENERGY
CONSUMPTION
 PULP AND PAPER ENERGY CONSUMPTION

Coal
Diesel fuel
Natural gas
Marine fuel oil
Black Liquor
Bark
Empty bunches
Palm fiber
Energy usage profile in the pulp industry
Pulp industry energy sources
contribution

Electricity
Coal
Diesel fuel
Natural gas

Paper industry energy sources

contribution Energy usage profile in the pulp industry

Source: Center for Pulp and Paper, 2021 8

 03
Analysis of Energy
Demand and Consumption
in The Pulp and Paper
Industry
 Final Energy Demand Projection Industry Sector

Final Energy in Sector Industry by Industry Group

250
Mtoe

Cement
200 Iron & Steel

150 Other Manufacture & Construction

59 61
56 58 Chemicals
100 53 54
50 52
49 Textile, leather & footwear
50 27
15 Fertilizer
23 42 44
30 31 33 34 36 38 40
8 11 18 Pulp & Paper
-
2010
2020
2025
2030
2035
2040
2045
2050
2055
2060
2065
2070
Agriculture & Mining

Source: Kebijakan Energi Nasional (Temporary), 2023 10

 Final Energy Demand Projection Industry Sector

Final Energy in Pulp & Paper

50

Mtoe 45 Biomass ccs

40 Natural Gas ccs

Oil ccs
35
Coal ccs
30
Biofuel
25
Electricity
20 Biomass
15 H2
10 Natural Gas

5 10.2 10.6 Oil

9.2 9.5 9.8
3.4 5.6 Coal
- 2.4
2010 2020 2025 2030 2035 2040 2045 2050 2055 2060 2065 2070

Source: Kebijakan Energi Nasional (Temporary), 2023 11

 Analysis of Energy Demand in The Integrated Pulp & Paper Industry

Assuming that the production rate in 2020

is around 80 percent of installed capacity,
and increases 2.5 percent annually in the
integrated pulp and paper industry of
around 465,080,000 GJ per year with a
composition of 63% non-fossil fuel energy.
Analysis result:
• Fossil fuels consumption is dominated by coal, which is around 76.5%
of the energy consumption of fossil fuels. Seeing that the average
type of coal used is low rank coal which has a calorific value of 4780
kcal/kg.

Energy Units Consumption based Energy consumption based on production

on capacity per year 2020 2021 2022
Fossil thermal energy Giga 172.079.600 137.663.680 141.965.670 146.267.660
Joule
Coal Ton 6.577.804 5.262.243 5.426.688 5.591.133
Natural gas MMBTU 32.619.994 26.095.995 26.911.495 27.726.995
Biomass GJ 293.000.400 234.400.320 241.725.330 249.050.340
Biomass imported GJ 51.275.070 41.020.056 42.301.933 43.583.810
Source: Center of Information and Data (Pusdatin), Ministry of Industry, 2021

12
 Analysis of Energy Demand in The Tissue Paper Industry

Energy demand assuming that the production rate in 2020 is

around 70 percent of installed capacity, and increases 3
percent every year in the tissue paper industry of around
685,105,304 GJ per year.

Analysis result :
The thermal energy consumed in the tissue paper industry is
around 42% in the form of natural gas and 57% in the form of
coal.

Energy Units Consumption based Energy consumption based on production

on capacity per year 2020 2021 2022
Fossil thermal energy Giga 28.458.300 19.920.810 20.774.559 21.628.308
Joule
Coal Ton 810.539 567.377 591.693 616.010
Natural gas MMBTU 11.328.769 7.930.139 8.270.002 8.609.865
Source: Center of Information and Data (Pusdatin), Ministry of Industry, 2021

13
 Analysis of Energy Demand in The Paper Industry

The consumption of thermal or fuel energy in the paper industry is more than 90%, where 65% of the fuel or
thermal energy comes from coal. When referring to the coal used today (low rank coal with a calorific value of
4780 kcal/kg), the need of coal based on capacity is 3,930,849 tons/year.

Energy Units Consumption based Energy consumption based on production

on capacity per year 2020 2021 2022
Fossil thermal energy Giga 121.027.170 96.821.736 99.847.415 102.873.095
Joule
Coal Ton 3.930.849 3.144.679 3.242.950 3.341.221
Natural gas MMBTU 16.059.625 12.847.700 13.249.191 13.650.681
Electricity GJ 1.879.583.362 1.503.666.690 1.550.656.274 1.597.645.858
Source: Center of Information and Data (Pusdatin), Ministry of Industry, 2021

In this study, the calculation of electrical energy requirements does not include the power plants generated
by the factory, which is not included in this calculation because it will cause double calculations. The electricity
generated by the industry itself has been calculated in the fuel calculation (power plants input) needed by the
industry. So that the actual energy demand is bigger.

14
 Reality of Energy Consumption in the Pulp and Paper Industry

Based on the projected energy consumption by the Center of Information and Data (Pusdatin), Ministry of
Industry, in the year 2022, coal consumption in the pulp and paper industry is 9.548.364 tons/year.

However, the energy consumption data from the Ministry of Environment and Forestry shows :
KBLI Kertas 2022 Coal Consumption
(ton)
17011 Industri Bubur Kertas (Pulp) 3.636.000
17012 Industri Kertas Budaya 108.000
17013 Industri Kertas Berharga -
17014 Industri Kertas Khusus 5.000
17019 Industri Kertas Lainnya 239.000
17021 Industri Kertas Dan Papan Kertas Bergelombang 2.552.000
17022 Industri Kemasan Dan Kotak Dari Kertas Dan Karton 155.000
17091 Industri Kertas Tissue 228.000
17099 Industri Barang Dari Kertas Dan Papan Kertas Lainnya YTDL 28.000
Total Verification and validation
6.951.000
are needed
*KBLI = Klasifikasi Baku Lapangan Usaha Indonesia (Indonesia's Industrial Classification)

15
04 CONCLUSION
● Coal is still dominating as one of the main energy
consumption in the pulp and paper industry.
● However nowadays some industries started to switch
to renewable energy and implemented energy
efficiency.

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