Daio Paper's board resolved on July 17 to dissolve and liquidate two Indonesian subsidiaries built around a single product: disposable baby diapers under its Elleair brand. PT. Elleair International Trading Indonesia (EITI), the sales and import arm set up in March 2013, and PT. Elleair International Manufacturing Indonesia (EIMI), the factory established in November 2014, will both be wound down under Indonesian law, with no completion date yet set.
The numbers explain the decision better than any strategy memo. EITI's sales fell from 183.1 billion rupiah in the year to December 2023 to just 6.1 billion rupiah in 2025, a business that has effectively evaporated, while its net loss attributable to the parent widened to 21.0 billion rupiah that year after losses of 172.1 billion and 189.5 billion rupiah in the two years before. EIMI's factory fared little better: sales slid from 113.7 billion rupiah in 2023 to 16.5 billion rupiah in 2025, with a 30.0 billion rupiah net loss in the final year.
| Year | EITI sales (bn rupiah) | EITI net loss (bn rupiah) | EIMI sales (bn rupiah) | EIMI net loss (bn rupiah) |
|---|---|---|---|---|
| 2023 | 183.1 | 172.1 | 113.7 | 12.3 |
| 2024 | 85.4 | 189.5 | 17.4 | 48.5 |
| 2025 | 6.1 | 21.0 | 16.5 | 30.0 |
Daio Paper owns 99.997% of EITI and 99.994% of EIMI, with the remainder held by Elleair Products Co. Two Daio employees are seconded to run each unit, and the company has been extending working-capital loans to EITI, a detail that underlines how thin the local operation had become.
Daio Paper's stated reason is blunt: intensifying price competition in Indonesia's diaper market, compounded by a global run-up in energy and material costs, has made the business unsustainable, and management does not expect the outlook to clear anytime soon. The company says it weighed selling the businesses outright before settling on liquidation as the more realistic path given the units' condition and prospects.
The exit sits inside a broader overseas restructuring under Daio Paper's fifth medium-term business plan, which the company says is meant to improve its financial position. That is only half the story, though: Daio Paper points to a separate "grand design" for its overseas business, unveiled in August 2025, under which it intends to accelerate new growth investment elsewhere and strengthen the foundations of operations it keeps. In other words, Indonesia's diaper unit is being cut loose so capital can go toward businesses the company judges have a better chance of scale.
What's left open is timing and financial fallout. Daio Paper says the liquidations will proceed once the necessary Indonesian legal procedures are complete, but has not given a schedule, and it has committed only to disclosing any material impact on group results if and when one emerges. For a market Daio Paper entered in 2013 betting on Indonesia's birth rate and rising living standards, the retreat closes out more than a decade of investment with two shrinking balance sheets and no buyer found.