Nov 27, 2008. /Lesprom.com/. Indonesian Indah Kiat had cut its output by around 20%, The Jakarta Post reported. The company's production cuts have caused the total output of the pulp and paper industry to drop to below 50% of capacity, having previously been running at 70% of capacity. In 2007, the industry was operating at an average output of 80 to 90% of capacity. Indah Kiat corporate secretary Yan Partawijaya said the company had cut production by 10 to 20% in line with what he said was the company's annual overhaul program. He said the company normally produced 2.7 million tons of paper per year. "We have been conducting an overhaul since October that will last until the end of January next year, while the global market is slowing down. "In the meantime, no workers have been dismissed, or temporarily laid off. That will be the last thing we resort to," he said. Mohammad Mansyur, who is the Chairman of the Indonesian Pulp and Paper Association, has said the industry would face tough challenges because of the global economic downturn, which came at a time when the price of pulp was already declining. He said the global price of pulp had declined to $600 a ton from $950 a ton mid this year, while global paper prices had slid to $750 a ton from $1,100 a ton mid this year.