During the three years from 1997 to 1999, Indonesia's production of paper (including pulp and paper products), especially exports, increased significantly. The output of pulp increased from 3.05 million tons in 1997 to 3.4 million tons in 1999. The increase was 12%. The export volume soared from 1.2 million tons in 1997 to 1.7 million tons in 1999, an increase of 41.7%. Despite the marked growth in both production and trade, Indonesia's domestic pulp production capacity has not yet been fully realized. Indonesia's pulp production capacity was 4.3 million tons in 1997, increased to 4.34 million tons and 4.91 million tons in 1998 and 1999, respectively. The ratio of production to production capacity was the highest in 1998, reaching 79%, and 71.3 in 1997 and 1999 respectively. % and 69.3%.
The production capacity of paper products was 7.23 million tons in 1997, increased to 7.56 million tons and 8.93 million tons in 1998 and 1999, respectively, an increase of 16.2%. During the same period, production increased from 4.82 million tons in 1997 to 5.48 million tons in 1998 and 5.78 million tons in 1999, an increase of 19.9%. The ratio of production to production capacity was also highest in 1998, reaching 72.6%, 66.7% and 68.9% in 1997 and 1999, respectively. The fact that the production capacity of pulp and paper products is significantly greater than the output indicates that the Indonesian paper production potential is still very large. In particular, between 1997 and 1999, although production accounted for only about 70% of production capacity, Indonesia's domestic and foreign investment in Indonesian paper industry has not stopped, and production capacity continues to increase, indicating that investors are still optimistic about the development prospects of Indonesian paper industry. . The export volume of paper products increased from 1.8 million tons in 1997 to 2.9 million tons in 1998 and 3.2 million tons in 1999, an increase of 77.8%, an average annual increase of 33.3%.
Indonesia is rich in forest resources. It is a world leader in paper production and a major exporter of paper. Exports account for a very high proportion of output. For example, pulp exports accounted for 49.6% of production in 1998 and 50% in 1999. This proportion of paper products was 37.3% in 1997 and increased to 52.9% and 55.4% in 1998 and 1999, respectively. The total paper output increased from 7.88 million tons in 1997 to 8.92 million tons in 1998 and 9.18 million tons in 1999. The export volume increased from 3 million tons in 1997 to 4.6 million tons in 1998 and 490 in 1999. In 10,000 tons, the proportion of exports to production was 38.1% in 1997, and increased to 51.6% and 53.4% ​​in 1998 and 1999, respectively. In other words, Indonesia's papermaking industry has undergone significant changes in recent years, with the majority of domestic exports turning to exports.