Corrugated Cardboard (OCC) & Scrap Paper Sorting, Baling & Backload Export

Kupang is a massive consumer of packaged manufactured goods imported in corrugated cardboard boxes from Java. Thousands of tonnes of discarded Old Corrugated Cardboard (OCC) and waste paper accumulate monthly across retail supermarkets, wholesale distributors, and government offices. In the absence of heavy industrial baling, this bulky scrap is burned open-air or clogs landfills. Crucially, container cargo vessels arriving in Kupang from Surabaya return with 70% to 80% empty container slots. Establishing a heavy hydraulic baling plant in KIB allows scrap paper to be compressed into dense 800 kg export bales and shipped back to paper mills in East Java taking advantage of deeply discounted backhaul ocean freight rates from Tenau Port (7.9 km).

Products & Business Formats

High-Density Baled Old Corrugated Cardboard (OCC Export Bales)

Heavy hydraulic compressed bales (600–800 kg per bale) of clean post-consumer corrugated boxes strapped with high-tensile galvanized wire.

Sorted Baled White Office Paper (SOW) & Ledger Scrap

Sorted, de-stapled, and baled high-grade white copy paper, bank archives, and commercial print scraps for premium tissue and paper mills.

Baled Mixed Paper, Old Newsprint (ONP) & Magazines

Compressed bales of secondary mixed papers, packaging cartons, and newsprint supplied to industrial boxboard and packaging paper mills.

Commercial Waste Paper Collection & Destruction Contracts

Turnkey scheduled scrap collection, cage bin leasing, and security recycling services for supermarkets, distribution warehouses, and banks.

Business model

Revenue comes from margins on sales of dense cardboard and paper bales per kilogram to paper mills in Java, the difference in weighed purchase prices from local collectors/retail stores, and press-machine rental service fees for third-party collectors.

Development stages

1. Stage 1 — Build a sorting centre and vertical baling press with capacity of 5–10 tonnes/day in a KIB Bolok warehouse for cardboard from Kupang warehouses.
2. Stage 2 — Upgrade to automatic conveyor-fed horizontal presses and secure regular supply contracts with 20 major mainland Timor distributors.
3. Stage 3 — Expand satellite paper-collection depots in Atambua and Waingapu and supply local egg-tray manufacturing plants in NTT.

Kupang is a massive consumer of packaged manufactured goods shipped in corrugated cardboard boxes from Java. Thousands of tonnes of discarded Old Corrugated Cardboard (OCC) and paper scrap accumulate monthly across retail supermarkets, wholesale distributors, and government offices. Crucially, container cargo vessels arriving in Kupang from Surabaya return with 70% to 80% empty container slots. Establishing a heavy hydraulic baling plant in KIB allows scrap paper to be compressed into dense 800 kg export bales and shipped back to paper mills in East Java taking advantage of deeply discounted backhaul ocean freight rates from Tenau Port (7.9 km).

Market Demand & Potential Buyers

• Major industrial paper and packaging mills in East Java (Surabaya, Mojokerto) via Tenau container shipping
• Recycled carton boxboard and egg-tray manufacturing plants across Eastern Indonesia
• Export container shipping lines seeking heavy dense cargo to balance empty backhaul sailings
• Commercial retail chains and distribution centers in Kupang requiring daily scrap clearance

Market Evidence & Context

Existing scrap paper trading in Kupang is conducted by informal manual junk yards using low-pressure manual screw presses that produce loose, light bales (under 200 kg). Shipping these low-density bales is economically disastrous because shipping lines charge by container volume. A heavy industrial hydraulic baling plant in KIB achieving 800 kg bale density and 24-tonne container payloads operates with massive profit margins.

Discarded corrugated cardboard and waste paper are gathered through commercial collection agreements with retail supermarkets, distributors, and collector networks.

Seasonality & Supply Continuity

Operating steadily year-round. Scrap paper volume surges during pre-holiday retail shopping peaks (Christmas, New Year, Easter, Eid).

Collection & shipping

Loose cardboard is gathered in high-sided cage trucks, unloaded at KIB warehouse, baled into 800 kg cubes, and stuffed directly into 40-foot containers.

Procurement & handling costs

Raw scrap cardboard acquisition and collection trucking account for 55%–65% of sales revenue. Deeply discounted empty backhaul container freight protects high net margins.

• Use of Waste Processing Equipment to Improve Muara Abu Waste Bank Productivity
• Operations and Sustainable Raw Materials — 100% Recycled Paper
• Kupang Container Terminal Service Profile

KIB provides the certified industrial setting: immediate proximity to Tenau Port for cheap backhaul container shipping, spacious covered warehouse space, and heavy container road access.

Direct Utilization of Empty Container Backhaul Rates at Tenau Port (7.9 km)

Container ships from Surabaya enter Kupang full and sail back empty; cardboard balers in KIB capture deeply discounted return ocean freight rates to Java paper mills. Road Distances from KIB Bolok to Key Port, City, and Airport Hubs

Spacious Dry Warehouses with Heavy Reinforced Concrete Floors

Continuous baler operations require laser-leveled high-tonnage concrete slabs and covered, dry warehouse space to protect paper bales from tropical rain. Bolok Industrial Park Profile

First-Class Arterial Road Network Built for 40-Foot Container Trucks

Heavy container chassis carrying 24 tonnes of dense paper bales can travel smoothly between KIB and Tenau Port without low bridges or road bans. Road Distances from KIB Bolok to Key Port, City, and Airport Hubs

Investors can deploy an automated horizontal continuous hydraulic baler (10–20 tonnes/hour capacity) inside a leased ready-built warehouse (1,500–2,500 m²) in KIB.

Business process

1. Inbound loose cardboard receiving over certified truck weighbridge, visual inspection, and unloading onto sorting apron
2. Manual and mechanical conveyor pre-sorting to extract plastic strapping, styrofoam, wax coatings, and metal fasteners
3. Incline steel-apron chain conveyor feeding loose cardboard into the charging chamber of a heavy continuous baler
4. High-pressure hydraulic compression (exerting 100–150 tonnes of hydraulic compaction force)
5. Automated 4-wire horizontal tying, bale cutting, and automated bale ejection onto discharge ramp
6. Bale weighing, barcoding with digital moisture/weight tags, and high-density forklift stacking up to 5 tiers high
7. Container stuffing: loading 22 to 25 tonnes of compressed bales directly into 40-foot high-cube containers for trucking to Tenau Port

Initial Capacity & Production Scale

Continuous Horizontal Fully-Automated Hydraulic Baler

Heavy-duty 100 to 150-tonne hydraulic baler with automated wire-tying system producing standardized 1100x1100x1400 mm bales weighing 750–850 kg.

Incline Heavy Steel-Apron Infeed Conveyor

Deep-pit or floor-mounted heavy steel slat conveyor with variable-speed drive feeding loose cardboard smoothly into baler hopper.

Heavy-Duty Forklift with Rotator & Bale Clamps

3.5 to 5.0-tonne industrial forklift fitted with hydraulic bale clamps capable of handling two 800 kg bales simultaneously.

Dry High-Ceiling Warehouse with Fire Sprinkler System

Well-ventilated dry warehouse featuring high eaves clearance (8–9 m), early-suppression fast-response (ESFR) fire sprinklers, and perimeter fire hydrants.

Dedicated Production Facilities (Investor Scope)

Truck weighbridge, loose cardboard receiving apron, infeed chain conveyor, horizontal hydraulic baler, bale clamp forklift, covered bale storage bay, and container loading docks.

Compressing bulky cardboard into dense 800 kg bales and exploiting the 70%+ empty container backload shipping imbalance from Tenau Port to Surabaya yields unstoppable 35%+ operating profit margins.

• Operations and Sustainable Raw Materials — 100% Recycled Paper
• Kupang Container Terminal Service Profile
• Use of Waste Processing Equipment to Improve Muara Abu Waste Bank Productivity

Primary operational risks include paper bale warehouse fire hazards, moisture absorption from tropical rainstorms, and paper mill commodity price cycles.

Catastrophic warehouse fire in bulk combustible dry paper storage bays

Install automated ESFR ceiling fire sprinklers, maintain 2-meter separation breaks between bale stacks, and enforce strict zero-smoking and thermal monitoring.

Bale moisture content exceeding 14% resulting in severe price penalties at Java paper mills

Enforce covered all-weather truck unloading docks and perform mandatory digital probe moisture tests on every outgoing bale before container stuffing.

Sharp downturns in domestic recycled paper pulp commodity prices

Establish multi-month fixed-floor pricing supply contracts with leading paper mill groups (Indah Kiat, Fajar Paper, Tjiwi Kimia).

Data sources include Indonesian Pulp and Paper Association (APKI) recycled paper statistics, Pelindo Tenau empty container backhaul logistics data, and KIB fire safety master plans.

Interested in developing this business at KIB?

Submit target monthly baling tonnage, hydraulic baler power requirements, and warehouse footprint specifications to KIB management to lease a suitable facility.

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