Mondi is expanding its paper bags business in Southeast Asia through a new joint venture with PT Indocement Tunggal Prakarsa Tbk, one of Indonesia’s leading cement manufacturers.
The joint venture, named PT Mondi Indo Prakarsa Kemasan, will be based at Indocement’s Citeureup Cement Factory Complex in West Java, Indonesia. Initially, the facility will focus on producing paper bags for Indocement, helping meet the region’s rising demand. Under the agreement, Mondi will hold a 60% stake, while Indocement will own 40% and serve as the primary long-term customer, ensuring stable production volumes.
Southeast Asia continues to see strong construction growth, making it a promising market for paper packaging solutions. This collaboration aligns with Mondi’s strategy to expand its presence in high-growth regions and build scalable operations. By establishing a majority-owned production base in Indonesia, Mondi strengthens its regional footprint while leveraging Indocement’s established market position and customer network.
Claudio Fedalto, Mondi’s Chief Operating Officer for Paper Bags, described the partnership as a strong strategic fit, highlighting its potential to deliver long-term growth while maintaining high standards in quality, safety, and operational performance.
The site’s location within the Citeureup complex allows for close integration with Indocement’s operations, improving efficiency and reliability. Mondi also plans to install an additional production line alongside the existing one, increasing output capacity by more than 200 million paper bags globally. The joint venture is expected to begin operations by the end of 2026, pending completion of all necessary commercial, legal, and operational steps.