EPAC to shut gravure printing line, build Surabaya plant in 2027
Indonesian flexible packaging maker PT Megalestari Epack Sentosaraya (EPAC) plans to discontinue its traditional gravure printing (MES) business by 31 December 2026, shifting focus to digital printing via its Epac Flexibles Indonesia unit. It also plans a new Surabaya production facility in 2027 with estimated capex of about IDR 59.1 billion, to be funded through leasing and a rights issue. EPAC posted a net loss of about IDR 5.54 billion in H1 2026 despite sales rising 14.4% to IDR 88.82 billion, as higher oil and freight costs pushed up raw material costs.
Why this mattersExiting a legacy gravure line that carries over half of operating costs while expanding digital capacity signals a structural cost reset for mid-size Southeast Asian converters under margin pressure.
- EPAC plans to discontinue its gravure printing (MES) business by 31 December 2026.
- MES contributes about 30% of consolidated revenue but 53% of consolidated operating costs.
- Operating expenses are near 80% of consolidated revenue per the 2025 annual report; EPAC expects this to fall to 70% after the MES exit.
- EPAC plans a new Surabaya production facility in 2027 with estimated capex of about IDR 59.1 billion, funded via leasing and a rights issue.
- H1 2026 net loss was about IDR 5.54 billion, with sales up 14.4% year on year to IDR 88.82 billion.
- EPAC has added 213 new customers so far in 2026, including in apparel, infant care, electronics and tobacco sectors.