Mondi expands paper bags business with Indonesian joint venture
Key takeaways
- Mondi is forming a joint venture with PT Indocement Tunggal Prakarsa to produce paper bags in Indonesia.
- The new entity, PT Mondi Indo Prakarsa Kemasan, will be majority-owned by Mondi.
- The move aligns with Mondi’s broader strategy to scale its business in Asia.
Mondi is expanding its paper bags business in Southeast Asia through a joint venture with PT Indocement Tunggal Prakarsa, one of the largest cement producers in Indonesia.
The joint venture, PT Mondi Indo Prakarsa Kemasan, will be located at Indocement’s Cement Factory Complex in West Java, Indonesia. According to the companies, the new facility will manufacture paper bags for Indocement, responding to local market demand.
Claudio Fedalto, chief operating officer for Paper Bags at Mondi, says: “This joint venture is an excellent strategic fit for our paper bags business. It allows us to establish a strong local platform in a structurally growing market, underpinned by a reliable long-term customer.”
“At the same time, it provides a clear pathway for scalable growth while applying Mondi’s high standards in operational excellence, safety, and quality.”
Regional expansion
Mondi will own a 60% stake in the joint venture and Indocement the remaining 40%, acting as the anchor customer.
Through the joint venture, Mondi builds a majority-owned local production platform in Indonesia. Mondi aims to increase its regional presence while benefiting from Indocement’s local market position and customer base.
The joint venture is part of Mondi’s strategy to expand its paper bags business and establish scalable platforms in Asia.
Last year, Mondi debuted its paper for luxury packaging at the Luxe Pack 2025 in China. The company also presented its Pergraphica, IQ Board, and IQ Grass + Packaging papers.
This month, Mondi showcased its semi-chemical fluting portfolio, including ProVantage Powerflute, Frescoflute, and Aquaflute, which are designed for fluctuating climate conditions.
