Recycling paper industry: Analysis of raw material consumption in Indonesia

Abstract

The recycling paper industry has a good potential market. The industry used recycled paper such as Old Corrugated Containers (OCC), Old Newspaper (ONP), mixed waste paper, and Sorted White Ledger (SWL) as raw material. In Indonesia, commonly, the industry got the raw material of about 50% by importing. The government provides regulation to ensure the sustainability of the industrial activity, that is the process of importing recycled paper and internal regulation to increase local raw materials. The objectives of the research were to study the chosen raw material for the recycling paper industry and to analyze the positioning strategy of consumption raw material for the recycling paper industry in Indonesia. This research used a qualitative description method by the Analytical Hierarchy Process (AHP) and Strength Weakness Opportunities Threat (SWOT) analysis. The data were obtained from a questionnaire distributed to the paper industry, paper researcher, and relevant agencies. Based on AHP, the strength criteria to choose raw material is the regulation and availability of raw material with values 0.323 and 0.243; and the alternative chosen is recycled paper raw material import. The result of SWOT analysis, the recycling paper industry in Indonesia, has an Internal Factor Analysis Strategy (IFAS) 0.05, and an External Factor Analysis Strategy (EFAS) - 0.03. That showed from SWOT quadrant matrix, the position coordinate point of IFAS and EFAS in quadrant II. That means the positioning strategy is diversification. The government, recycling paper industry, and relevant agencies to corporate to increase the collecting rate of recycled paper.