Mondi, a global leader in sustainable packaging and paper, is expanding its paper bags business in Southeast Asia through a joint venture with PT Indocement Tunggal Prakarsa Tbk (Indocement), one of the largest cement producers in Indonesia. The joint venture, PT Mondi Indo Prakarsa Kemasan, will be located at Indocement’s factory complex in Citeureup, West Java. Mondi will hold a 60 per cent stake in the venture, while Indocement will own the remaining 40 per cent and serve as the anchor customer, providing long-term volume stability.
The move aligns with Mondi’s strategy to establish scalable platforms in structurally growing markets. Southeast Asia’s sustained construction demand makes it an attractive long-term market for paper bags. Through this partnership, Mondi establishes a majority-owned local production platform in Indonesia, leveraging Indocement’s strong local market position and customer base to strengthen its regional presence. Claudio Fedalto, Chief Operating Officer of Paper Bags at Mondi, noted that the venture provides a clear pathway for growth while maintaining high standards in operational excellence and safety.
Operational integration at the Citeureup complex is expected to drive efficiency and reliable execution. Mondi plans to install an additional production line alongside the existing one, adding over 200 million paper bags to its global production footprint. This expansion is designed to support growing local demand and serve as a base for further activities in the region. The joint venture is expected to become operational towards the end of 2026, pending the completion of all commercial and legal preparations.
