Hoi Fu Paper Packaging has broken ground on a new paper packaging production facility in Indonesia’s Kendal Special Economic Zone, marking another significant investment in Southeast Asia’s packaging manufacturing base. The project is valued at Rp 1.12 trillion, equivalent to around USD 64.6 million, and is expected to strengthen the region’s role in serving industrial, retail and consumer goods packaging demand.

The facility is planned for Kendal SEZ in Central Java, an area that has become an important destination for foreign direct investment and industrial development. According to government estimates, the project is expected to create employment for around 1,000 workers, with approximately 95% of those jobs going to local labour. Recruitment will take place in three phases, beginning with 300 workers, followed by 500 and then a final group of 200.

The investment highlights the growing strategic value of Indonesia for packaging manufacturers seeking regional scale, labour availability and access to expanding consumer markets. As Southeast Asia continues to attract industrial investment, packaging production is becoming closely linked to broader economic development, export capacity and supply chain localisation.

Paper packaging investments in emerging industrial zones show how packaging capacity is increasingly being built closer to fast-growing consumer and manufacturing markets.

Government officials have positioned the project as part of a wider strategy to attract investment into special economic zones. Susiwijono Moegiarso, secretary of Indonesia’s Coordinating Ministry for Economic Affairs, said the government remains committed to encouraging incentives for businesses investing in SEZs. Local authorities also expect the facility to support economic growth in Kendal and generate new employment opportunities.

The upcoming plant is expected to provide end-to-end packaging services, including original design, research and development, and intelligent manufacturing. This suggests that the site will not only produce packaging, but also support product development and manufacturing integration for customers requiring more complete packaging solutions.

• Investment value is estimated at Rp 1.12 trillion, or around USD 64.6 million.
• Employment impact is expected to reach approximately 1,000 jobs.
• Local workforce participation is projected at around 95%.
• Service scope may include design, R&D and intelligent manufacturing.

For the paper packaging industry, the project reflects several important market dynamics. Brands and manufacturers increasingly need packaging suppliers that can deliver not only production volume, but also design capability, speed, consistency and supply chain reliability. Facilities that combine manufacturing with development services can become more attractive to customers looking to reduce complexity and shorten time to market.

The location in Kendal SEZ also matters. Special economic zones are designed to offer infrastructure, incentives and administrative support that can make large manufacturing projects more competitive. For packaging producers, this can help reduce operational friction and support long-term investment in equipment, workforce training and customer service capabilities.

Indonesia’s investment environment is also relevant. Official government data cited in the report showed that Hong Kong investment in Indonesia reached USD 2.7 billion in the first quarter of 2026, while mainland China investment totalled USD 2.2 billion over the same period. Local media reports described Hoi Fu as coming from China, with another report specifically identifying Hong Kong.

The Kendal SEZ has already attracted major capital inflows. By the first quarter of 2026, cumulative investment in the zone had reached Rp 101.93 trillion, or almost USD 5.9 billion, creating more than 117,000 jobs. This scale helps explain why packaging manufacturers are looking at the area as a platform for production growth.

Paper packaging demand is likely to benefit from the wider shift toward fibre-based materials, e-commerce, consumer goods expansion and regional manufacturing growth. However, success will depend on the facility’s ability to deliver consistent quality, competitive costs and packaging formats that meet customer needs across different sectors.

Hoi Fu’s Kendal investment shows how packaging manufacturing is becoming part of broader industrial strategy in Southeast Asia. By combining paper packaging production with design, R&D and intelligent manufacturing, the company is positioning the new facility as more than a conventional converting site. It could become a regional packaging platform supporting local employment, supply chain development and future growth in Indonesia’s packaging sector.