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PT. Aspex Kumbong

PT. Aspex Kumbong is a paper manufacturing company in Indonesia. In preparation for a likely rise in electricity rates, its Bogor Factory has been promoting energy conservation. After the factory received an energy conservation diagnosis, it started to use Japan’s advanced energy-saving technology. Compressor control and air piping at the Bogor Factory were reviewed and renovated, resulting in higher energy savings than expected.

Dealing with a steep rise in the electricity bill becomes an urgent management issue

PT. Aspex Kumbong is a paper manufacturing company established in 1983, and is a member of the Korea-based Korindo Group. The company is located in Cileungsi in the suburbs of Jakarta, West Java, Indonesia. Its Bogor Factory manufactures paper for newspaper, books, notebooks, and telephone books as well as printer paper, and has a production capacity of 420,000 tons per year. The factory also has a production line for producing deinked pulp (DIP) from paper waste.

Formerly, Indonesia followed a policy of using government budget to keep electricity rates low for industrial users and household consumers. However, for reasons such as a recent rise in fuel costs, the government changed its policy. Rates for large consumers of electricity like Aspex Kumbong and other major companies have increased since the spring of 2014, resulting in an increase of as much as 65 % in some cases.

According to Mr. Bongki Choi, General Manager of the company’s Electric & Power Plant Department, “Conservation of energy has been a pressing management issue for our company. A few years ago, we implemented our own energy-saving measures, such as the addition of inverters for the various rotating machines (water feed pumps, etc.) required for operating the paper machines*1 in Bogor Factory. However, when the cost of electricity rose in 2014, we felt the need for further energy efficiency.”

While the company was seeking a means to further reduce power consumption, PT. Azbil Berca Indonesia, Azbil Corporation’s subsidiary in Indonesia, proposed the use of an energy-conservation diagnosis program.

This case study was published in the 2016 Vol.2 issue of the azbil Group's corporate magazine, azbil.