Asia Pacific Rayon (APR), a vertically integrated producer of viscose rayon, is to expand its operations in Indonesia thanks to the approval of a US$300m loan.
The company secured the syndicated loan facility with national and international affiliated banks and says it will use the funds to support continued capital investment in its production facilities at Pangkalan Kerinci, Riau Province, Sumatra.
APR is vertically integrated through its supply chain, from renewable fiber plantations to high-value textile development. It commenced operations in 2019 and was formally inaugurated by President Jokowi Widodo in February 2020. APR plans to increase its production capacity over the coming year to capture the strong growth potential of viscose staple fiber (VSF), strengthening its market position in Indonesia and in export markets across the region.
“This funding will be used to support continued investment in our operations in Kerinci,” says Basrie Kamba, director, Asia Pacific Rayon. “Rayon fibre, or viscose, is a textile raw material derived from sustainably managed plantations. As rayon is both renewable and biodegradable, it supports the trend towards sustainable fashion in Indonesia and in other markets around the world.”
APR’s planned expansion is aligned with the Indonesian Government’s strategy to increase investment and boost employment to support the recovery of the country’s economy and address the continued impact of the Covid-19 pandemic. Following the passing into law of the Omnibus Bill in October last year to streamline investment and stimulate job creation, President Widodo said last month that investment would be the key factor in achieving 5% economic growth in 2021.
“This loan facility and our continued investment in our operations are evidence of the growth potential of the viscose rayon sector in Indonesia and around the world,” adds Basrie. “We are committed to supporting the Indonesian Government’s efforts to improve the investment climate in export-oriented manufacturing industries, and its efforts to create upstream jobs in plantations and the processing of raw materials, and downstream opportunities in textile factories and related businesses.”
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Hari Setiawan, executive vice president of PT Bank Rakyat Indonesia (Persero) Tbk, adds: “As representative of JMLAB and all lenders, I hope this collaboration will be useful to support the growth and development of PT Asia Pacific Rayon in increasing production and operations and also supporting the recovery of Indonesia’s export growth.”