Jakarta. Riau-based pulp and paper producer APRIL Group has contributed a whopping Rp 484.3 trillion (around $32.4 billion) to Indonesia’s gross domestic product (GDP) during 2016-2022, according to a study by research institute LPEM FEB UI.

APRIL Group has also become a substantial driver to the sub-national economy, adding Rp 245.6 trillion to Riau’s gross regional domestic product in 2016-2022. The company last year also created jobs for 257,436 people nationwide and 146,986 in Riau.

“In 2022, APRIL contributed 0.5 percent of Indonesia’s GDP. This shows that APRIL is not one of the leading players in the pulp and paper industry, but they can also become a significant economic driver in Indonesia,” Uka Wikarya, the head of regional economic research at LPEM FEB UI, said.

The study also shows that APRIL generated Rp 8.44 trillion in tax revenues over those years. APRIL’s operations have also been a boon to the sub-national governments in Riau province, contributing around Rp 1.63 trillion.

The Pelawan regency, namely where APRIL Group operates, also booked an economic growth of 2.25 percent and 4.07 percent in the pandemic-ridden 2020-2021, respectively. The research attributed this growth to APRIL’s operations, among others, which remained on a positive trend throughout the pandemic. APRIL also made Rp 33.4 trillion worth of investment to build a sustainable paperboard facility.

According to the LPEM FEB UI study, every Rp 1 million increase in the sales of APRIL’s pulp and paper products generates Rp 3.48 million in national economic output. The economic output for the Riau province stands at around Rp 2.27 million. Every 10 new job opportunities in APRIL also spur 57.6 workers nationwide and 40.4 workers in the Riau province.

APRIL’s corporate social responsibility (CSR) spending of Rp 618 billion also generates Rp 210 billion in household income in the areas of its implementation, namely Pelalawan, Kuantan Singingi, Siak, Kampar, and Meranti Islands.

“This study shows the impact that APRIL has made towards economic growth,” Sihol Aritonang, the president director of APRIL’s operating arm Riau Andalan Pulp and Paper, said.

Sihol added: “This also affirms our commitment to continue supporting sustainable economic growth through the entire APRIL production chain, including giving positive impact for the people in line with our sustainability commitment APRIL2030.”

Launched in 2020, APRIL2030 is a roadmap encompassing climate and community-related targets that APRIL is trying to achieve over the next decade. For instance, APRIL Group aims to eradicate extreme poverty within a 50-km radius of its operations as part of its Inclusive Progress commitment.

The LPEM FEB UI study uses an economic multiplier modeling that is based on the 2016 interregional input-output (IRIO) table and the 2016 Pelalawan input-output table. The report measures APRIL’s fiscal impact by using LPEM FEB’s fiscal allocation model.

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