Indopoly Prepares US$100 Million Capex For Capacity Expansion

Photo: Doc. Indopoly

JAKARTA - PT Indopoly Swakarsa Industry Tbk (IPOL), a leading premium film producer for this year's flexible packaging industry, has allocated funds of around US$100 million to complete a capacity-added expansion project.

This was done by premium film manufacturers of the Biaxially-Oriented Polypropylene (BOPP) and Biaxially- Oriented Polyester (BOPET) used in food packaging, non-food packaging, graphic lamination industry and so on, in order to support expansion plans to strengthen sustainable business growth.

Jeffrey Halim, Vice President Director of PT Indopoly Swakarsa Industry Tbk explained that this capacity building strategy is a milestone project that has been planned and started in 2022. We believe that the series of innovations and strategic expansions that we are doing will significantly increase profitability and increase the diversification of the company's product portfolio.

Indopoly, which currently has 3 factories spread across Indonesia and China, has a strategic expansion and innovation program to encourage sustainable growth. Some of the strategic programs run by the Company include:

1. Increase in BOPP Machine Capacity

Indopoly will increase its production capacity by adding two of the most recent BOPP (Biaxially Oriented Polypropylene) machines in Purwakarta, Indonesia, and in Suzhou, China.

This expansion will increase the company's annual capacity from 100,000 tons to 165,000 tons, marking a significant increase of 65 percent. With this capacity increase, Indopoly intends to reach an economical scale so that production costs per unit will be lower. The company targets these new machines to be fully operational by the end of 2024.

2. Improved Company Metalizing Machine Capacity

Indopoly also increases the capacity of metalizing machines by adding two units of metalizing machines that have the latest technology. These advanced machines are capable of producing high-resilience film types such as AlOx (Aluminum Oxide) and SiOx (Silicon Oxide), these films have the ideal transparent features to clearly display product content in packaging. These two machines will collectively increase production capacity by around 22.400 tons per year.

3. Investment in Offline Coating Machines

In addition to the BOPP and metalizing machines, Indopoly is also investing in new Offline Coating machines to further diversify the Company's premium product offerings.

This addition will increase the efficiency of ultra high barrier film production as well as various other high-end films, these films are targeted to be an alternative that is more environmentally friendly than PVDC-based packaging whose use is increasingly limited.

In collaboration with his R&D team, Indopoly encourages product innovation by developing films with ultra high barriers and environmentally friendly, more easily recycled mono-material films. This commitment to innovation and sustainability is proven by the introduction of a series of innovative new products in 2024, including breathable anti-fog, oxo-biodegradable BOPET, and Nylon Replacement films, as well as various other types of ultra high barrier films.

These products offer not only to meet customers' growing demand, but also to support circular economic policies that encourage producers to produce products that are easier to recycle.

"Indopoly anticipates significant revenue growth in 2025 which is driven by the operation of investment that we have conveyed above. The company upholds its commitment to continue to grow and develop with a focus on maximizing profitability and providing added value for shareholders," Jeffrey Halim concluded in a press release, Wednesday, June 12.