Indah Kiat Pulp and Paper, a subsidiary of the Sinar Mas Group, announced intentions to invest $3.63 billion in the construction of a new paper plant and associated infrastructure in West Java.

According to a stock exchange statement late Wednesday, the new factory would have an annual production capacity of 3.9 million tonnes of industrial paper, adding to Indah Kiat's present capacity of 2.2 million tonnes.

According to the corporation, rising demand for industrial paper has pushed output to near full capacity.

"The firm intends to enhance manufacturing capacity to anticipate increased demand for its goods, particularly industrial paper," according to the filing.

As of 2022, the firm can produce 3.1 million tonnes of pulp per year, 1.6 million tonnes of cultural paper derived from fresh wood fibre, and 108,000 tonnes of tissue paper.

Due to the amount of the investment, it would seek shareholder approval at a meeting next month.