PT Indah Kiat Pulp & Paper Tbk (INKP) is currently undergoing a significant strategic transformation phase to strengthen the company's fundamentals. This step is seen as a crucial effort to reduce the company's dependence on the volatility of the global pulp price cycle, which frequently affects financial performance.
The main focus of this transformation lies in strengthening the packaging business, which is now projected to become a new growth engine for the company. The utilization of the factory facility in Karawang marks an important turning point in this strategy, where increased production utilization is expected to contribute significantly to future operational revenues.
Analysis from Mirae Asset Securities shows that this business diversification will maintain INKP's cash margin resilience amidst potential weakness in pulp prices. The cash margin is predicted to remain stable at USD 263 per ton in 2028, only slightly down from the projected USD 298 per ton in 2026, reflecting maintained operational efficiency.
Financially, INKP is projected to record an average revenue growth of 10.4 percent annually in the 2025–2028 period. This performance is driven specifically by the expansion of the packaging segment, which is targeted to grow by 34 percent per year. This positive trend is also predicted to boost EBITDA growth by 7.9 percent and core profit by 11.8 percent, outperforming the five-year growth track record of 5.7 percent.
