Mondi has moved to strengthen its footprint in Southeast Asia by forming a joint venture with PT Indocement Tunggal Prakarsa, targeting the expansion of its industrial packaging operations in Indonesia. The collaboration will see the creation of PT Mondi Indo Prakarsa Kemasan, a new entity to be located within Indocement’s cement production complex in Citeureup, West Java. The initiative reflects Mondi’s broader strategy to scale its regional capabilities and secure long-term growth through localised manufacturing.
The newly formed business will begin by producing paper bags primarily for Indocement, addressing increasing demand across Southeast Asia. Under the agreed structure, Mondi will take a 60% stake in the venture, with the remaining share held by Indocement, which will also act as the anchor customer. This arrangement is expected to ensure consistent demand visibility while enabling the joint operation to build a stable production pipeline from the outset.
The Mondi Indocement JV is designed to reinforce the company’s manufacturing base in Indonesia while leveraging Indocement’s established market reach and customer network. By situating operations within the existing cement facility, the partners aim to enable closer operational alignment, streamline logistics, and improve execution efficiency on a day-to-day basis. Mondi has also outlined plans to install an additional production line adjacent to the initial setup, a move that is projected to increase its global output capacity by more than 200 million paper bags annually.
Operations at the site are scheduled to commence towards the end of the year, pending the completion of required commercial, operational, and legal processes. Commenting on the development, Mondi paper bags chief operating officer Claudio Fedalto said: “This joint venture is an excellent strategic fit for our paper bags business. It allows us to establish a strong local platform in a structurally growing market, underpinned by a reliable long-term customer. At the same time, it provides a clear pathway for scalable growth while applying Mondi’s high standards in operational excellence, safety and quality.” The Mondi Indocement JV is expected to serve as a foundation for further expansion across the Southeast Asian packaging market.