In 1970s, many sugar mills in Indonesia faced waste disposal problems. Only a small portion of their wastes (i.e. bagasse) can be used as fuels. As the result, sugar mills had to spend a significant amount of money for disposal purposes. Similarly, factories producing corrugated cardboard boxes and printed paper experienced difficulty in disposing their wastes, rejects, and paper trims.

Mr. Soegiharto, the founder of PT. Pakerin, saw the opportunity to use the waste as a raw material to manufacture pulp and paper. This idea is also supported by the fact that most industrial papers had to be imported from overseas. Responding to these market opportunities, PT. Pakerin was established in 1977 in Bangun Village, 38 km Southwest of Surabaya, the second largest city of Indonesia and the capital city of East Java.

Pakerin started with one bagasse pulping plant, one waste water treatment plant, and one paper machine producing Duplex Board. Through series of well-planned expansions, cost control, and good management, the Company grows to be one of the leading companies in Indonesia producing industrial paper. Currently, the Company owns integrated mills, operates series of modern and efficient machines, and run by many experienced experts.