The pulp and paper industry of Indonesia is on the receiving end of plenty of criticism for its negative impact on the environment. However, the industry also plays a major role in the Indonesian economy, accounting for 6.7 percent of the country's processing industry's gross domestic product (GDP) and providing employment to 260,000 direct workers and 1.1 million indirect workers. Last year, in 2016, Indonesia's pulp and paper industry ranked seventh in terms of biggest foreign exchange earners (excluding the oil and gas sector) when it reaped USD $3.79 billion.

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The pulp and paper industry in Indonesia is expected to expand five percent in 2015 on rising paper consumption in Asia and particularly in China, the world’s second-largest economy. Rising consumption will lead to an intensifying of global competition in the pulp and paper industry. Global pulp demand is forecast to rise 2.6 percent per year to 38.9 million tons by 2025 from 24.5 million tons in 2010. Over the same period, pulp demand in China is estimated to grow 6.4 percent per year to 14.3 million tons by 2025.

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