Kertas Kraft Aceh Needs 1 Trillion Rupiah to Revive Operations

After having collapsed for 11 years since 2007, PT. Kertas Kraft Aceh (Persero) wants to operate again in North Aceh. According to plan, this year it begins to revitalize the plan which will take about three years.

“To revitalize the plant and forest management it requires funds of around IDR1 trillion,” said President Director of PT. Kertas Kraft Aceh (KKA) Seto Karjanto, in a written statement, Friday (7/20/2018).

The plan to revive the paper plant has been submitted to the Acting Governor of Aceh Nova Iriansyah. On Monday (7/16), PT KKA officials met Nova in the Official Residence of Aceh Deputy Governor. The meeting was attended by officials in Aceh along with the Commissioners and Directors of PT KKA.

According to Seto, the operation plan of PT KKA has been started since last year, but until now has not been realized. To re-operate, there are four important aspects that PT KKA must do including providing raw materials, revitalizing plants, marketing and settling PT KKA’s obligations with creditors after the factory has been re-operating.

For the first phase, there will be planting of pine forest areas and conducting a feasibility study. The plant will also be revitalized for three years which will commence this year.

“As for commercial production it is targeted to begin in 2021,” Seto said.

Seto predicted if PT KKA re-operates it will be able to employ 9,600 people with a multiplier effect of up to 30,000 workers. In addition, it will also increase the income and welfare of the community.

“Therefore, we request support from the Government of Aceh in order the plan to operate PT KKA can be realized,” he explained.

Meanwhile, Acting Governor of Aceh Nova Iriansyah said the Government of Aceh strongly supports the re-operation of PT. KKA. Moreover, the operation of this factory will be able to absorb labor in large numbers.

“We want this to be immediately executed and realized in accordance with what has been planned,” Nova said.