PT Pindo Deli Pulp and Paper Mills Tbk “PIDL”
PIDL benefits from a strong business profile, supported by its sizeable production capacity, vertically integrated operations, and strategic position within the APP Group. Its integration with Sinar Mas Forestry secures access to wood as a key raw material, allowing the company to maintain cost efficiency, production continuity, and a stronger competitive position than less integrated peers. The company also has a well-diversified revenue base, with tissue becoming the largest contributor at 48.7% of revenue in 2025, followed by paper, pulp, and packaging, while its broad export markets provide additional geographic diversification. Going forward, tissue products are expected to remain the key growth driver, with projected growth of around 3%–5% in 2026–2028, helping offset the structural decline in graphic paper demand. However, PIDL’s financial profile remains moderate, as leverage is still elevated despite adequate liquidity and strong financial flexibility supported by USD1.4 billion in cash, access to the bond market, and relationships with more than 15 banks in Indonesia.