1. Master of Management
Faculty of Economics and Business
Universitas Gadjah Mada
Introductory Economics for Managers
Group 4 :
Fanly Wisesa
G. Wajan Harivan Chandra
Hadiyanto Purnomo
Idham Rachim
Lingga Wardhana

2. Source
• Elby Julian Putra, “Analisis Struktur, Perilaku dan Kinerja
Industri Pulp dan Kertas di indonesia,” Final
Paper, Bogor, 2009.
• Video :
www.theofficesuppliessupermarket.com, www.HowStuff
Works.com
• Paper Art Picture created by Peter Callesen

3. Market Structure

4. Industry Player (CR4)
Kapasitas produksi kertas ton/tahun (%)
Nama Perusahaan
2001 2003 2005 2007
PT. Indah Kiat Pulp & Paper Tbk 0.4 0.38 19.56 18.9
PT. Pindo Deli Pulp & Paper Mills 11.91 11.15 13.57 12.82
PT. Pabrik Kertas Tjiwi Kimia Tbk 8.49 7.94 9.67 9.92
PT. Fajar Surya Wisesa Tbk 4.07 3.8 4.63 6.12
Sumber : Asosiasi Pulp dan Kertas Indonesia, berbagai tahun

5. Pulp & Paper Market Characteristic
• Oligopolistic Market  CR4 > 60%
Year
Kode ISIC (34)
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average
Pulp 1,00 0,90 0,92 0,93 0,97 0,93 0,93 0,88 0,93 0,88 0,87 0,92
Jumlah Perusahaan 4 5 5 4 4 7 7 8 7 9 10
Kertas Budaya 0,70 0,58 0,68 0,75 0,71 0,73 0,55 0,85 0,78 0,68 0,78 0,70
Jumlah Perusahaan 54 54 24 64 66 61 41 35 30 43 40
Kertas Industri 0,91 0,92 0,75 0,71 0,76 0,55 0,19 0,64 0,74 0,81 0,48 0,67
Jumlah Perusahaan 34 29 41 41 40 40 21 40 35 28 36
Kertas tissue 0,69 0,48 0,68 0,69 0,68 0,70 0,31 0,86 0,81 0,71 0,78 0,67
Jumlah Perusahaan 32 31 35 33 32 29 17 23 29 28 28
Kertas lainnya 0,72 0,42 0,50 0,52 0,52 0,55 0,77 0,82 0,81 0,72 0,65 0,63
Jumlah Perusahaan 18 20 16 16 14 21 33 35 22 26 48
Kotak kertas dan karton 0,39 0,38 0,37 0,39 0,60 0,42 0,40 0,38 0,26 0,27 0,40 0,39
Jumlah Perusahaan 172 166 176 177 180 161 142 177 190 203 280
Kertas & karton yang tidak
termasuk dalam golongan 0,54 0,60 0,53 0,42 0,63 0,42 0,31 0,54 0,60 0,57 0,71 0,53
Jumlah Perusahaan 45 40 62 58 51 58 68 46 47 55 64
Rata-rata 0,70 0,61 0,63 0,63 0,69 0,61 0,49 0,71 0,70 0,66 0,66 0,64
Total jumlah perusahaan 359 345 359 393 387 377 329 364 360 392 506

6. Pulp & Paper Company
Peningkatan impor
kertas yang dijual
dengan harga
dumping

7. Pulp & Paper Industry Concentration
Peningkatan impor
kertas yang dijual
dengan harga
dumping

8. Market Share based on Plant
Capacity (2006)
Market share pulp Market share kertas
Company Name (%) (%)
PT. Indah Kiat Pulp & Paper Tbk 30.71 20.56
PT. Pindo Deli Pulp & Paper Mills - 13.94
PT. Pabrik Kertas Tjiwi Kimia Tbk - 10.79
PT. Fajar Surya Wisesa Tbk - 6.66
PT. Riau Andalan Pulp & Paper 31.02 -
PT. Kiani Kertas 8.14 -
PT. Tanjungenim Lestari Pulp & Paper 6.97 -
PT. Surabaya Agung Industri Pulp & Kertas
Tbk - 4.63
Source : APKI – Asosiasi Pulp dan Kertas Indonesia (2007)

9. Barrier to Entry Analysis by using
MES Method
Most difficult
to entry
Less difficult
to entry
Biggest Company Output
MES (Minimum Efficiency Scale) =
Total Output

10. Conduct

11. Conduct Analysis
• Pricing Strategy  Main player control the
price, others just follow
• Product Strategy  Focus in high added
value product, i.e; note book & photocopy
paper
• Distribution Strategy  By professional
marketer; distributors & sold agents

12. Performance

13. Pulp & Paper Industry
Performance Analysis
• PCM (Price Cost Margin)
(Added Value – Total Cost) / Output
• Growth
(Output(t) – Ouput(t-1))/Output(t-1)
• XEF (Internal Efficiency)
Added value/ Input value

14. Pulp & Paper Industry Performance
Analysis
Year PCM Growth XEF
1990 28.99 47.4 51.2
1991 34.43 36.03 63.7
1992 29.85 20.03 55.5
1993 28.77 -0.94 54.1
1994 27.78 35.11 54.8
1995 27.04 33.35 50.7
1996 28.72 30.33 49.8
1997 40.84 2.4 79.4
1998 19.45 62.97 55.4
1999 33.09 10.41 61
2000 20.9 113.14 30.7
2001 30.69 29.89 50.8
2002 30.07 37.01 46.9
2003 37.46 -14.73 72.1
2004 38.24 0.51 73.9
2005 31.32 20.79 54.7
2006 37.77 5.47 74.4
Average 30.31 27.76 56.26
Source : BPS Tahun 1990-2006

15. Conclusion
• Pulp & Paper Industry Market Structure:
Oligopoly
• Conduct can be evaluated from Pricing
Strategy, Product Strategy & Distribution
Strategy used by Pulp & Paper Industry
• Maximum PCM was gained in 1997 (40,84%).
Minimum PCM occured in 1998 due to input
value boost