OPPM’s credit outlook remains stable, underpinned by its resilient profit margins and well-integrated operational structure, despite constraints posed by a moderate financial policy. The company boasts an impressive EBITDA margin of 46.8% in 2023, outperforming peers like Indah Kiat Pulp & Paper Tbk (29.4%) and Pabrik Kertas Tjiwi Kimia Tbk (12.5%), owing to its export-oriented business model and superior gross profit margins. OPPM’s vertically integrated operations, spanning raw material sourcing to final product manufacturing, provide a significant competitive advantage through better coordination, efficiency, and cost control across the supply chain, as reflected in its lower COGS/revenue ratio of 51.9% compared to competitors. However, OPPM’s financial policy is expected to be moderate until 2026 as it undertakes a new plant development (OKI 2), funded largely through external loans, potentially elevating its financial leverage if not offset by corresponding revenue and EBITDA growth.