Jakarta, 9 October 2019—The Anti-Forest Mafia Coalition released a report on findings of violations of zero-deforestation commitments by two pulp and paper-producing giants in Indonesia - Asia Pulp & Paper (APP) / Sinarmas Group and Asia Pacific Resources International Limited (APRIL). This violation is related to the finding that in 2018 it was indicated that the two groups were still supplied with wood by a company suspected of destroying natural forests, namely PT Fajar Surya Swadaya (FSS), a subsidiary of the Djarum Group.

In fact, a year earlier the Coalition had revealed that APP and APRIL had committed the same violation: buying wood from a deforestation concession, one of which was FSS, in its concession in East Kalimantan.

Deforestation-linked wood supply to APRIL and APP in 2018

• APRIL

Based on a report on the fulfillment of industrial raw materials (RPBBI) managed by the Ministry of Forestry and Environment, PT Riau Andalan Pulp & Paper (RAPP), APRIL's main paper and pulp mill in Indonesia located in Pangkalan Kerinci, Riau, accommodates 305,617 m3 of wood from FSS in 2018.

• APP

PT Indah Kiat Pulp & Paper Tbk, APP's largest paper and pulp mill in Indonesia, located in Perawang, Riau, based on a report on the fulfillment of industrial raw materials managed by the Ministry of Environment and Forestry, recorded 18,538 m3 of timber from FSS in 2018. In 2018 In the same way, PT Sarana Bina Semesta Alam (SBSA), an APP-affiliated wood chip mill, is collecting 25,099 m3 of wood from FSS.

 APP Justifies Findings of Deforestation, By Claiming "Administrative Errors"
APP responded to the deforestation findings by PT Fajar Surya Swadaya by releasing a “verification report” of timber purchases from this supplier. In the report, APP stated that the FSS was converting High Carbon Stock (HCS) forest, and in November 2017 APP categorized the FSS as a “significant risk that is not in line with APP's commitments”.

APP has not taken any steps regarding the alleged supply of deforested wood to its mill in East Kalimantan
APP has confirmed deforestation in the FSS concession has cut off supply from the company to its pulp mill in Riau. However, the supply of FSS to another factory, namely PT Sarana Bina Semesta Alam (SBSA) in East Kalimantan, will continue until 2018.

APP has not taken any steps regarding the alleged supply of deforested wood to its mill in East Kalimantan
APP has confirmed deforestation in the FSS concession has cut off supply from the company to its pulp mill in Riau. However, the supply of FSS to another factory, namely PT Sarana Bina Semesta Alam (SBSA) in East Kalimantan, will continue until 2018.

APRIL denies violations and supply doubled in 2018
Based on the document of realization of industrial raw material supply (RPBBI) for APRIL's pulp-paper mill in Sumatra in 2018, the supply from Fajar Surya Swadaya was 305,617 m3. Although this supply is less than 3% of the total raw material supply of PT Riau Andalan Pulp & Paper, the amount is very large - around 10,000 truck loads. This supply is more than the previous year which was only 141,183 m3.

Responding to a previous report by the Anti-Forest Mafia Coalition, APRIL stated that Tropenbos International had conducted a High Conservation Value (HCV) assessment of the FSS concession which concluded that its plantations were developed only on non-HCV areas. However, APRIL has not provided any documentation to support this claim.

The basis of APRIL's rebuttal arguments contradicts APP's recognition of deforestation in the area (see APP response above).

A commitment on the lips?
After about 2 decades of involvement in the destruction of natural forests and contributing to the decline in the population of Sumatran orangutans and tigers, APP declared a zero-deforestation commitment in 2013. Two years later, APRIL, a corporation with a similar track record, has also made a similar commitment.

The findings above, especially after being reported a year before, indicate that the two of them are not serious about fulfilling their zero-deforestation commitments.

Recommendation
The Anti-Forest Mafia Coalition urges the Djarum Group to:

1. Immediately stop all clearing of natural forest in the concession belonging to PT Fajar Surya Swadaya and all other forestry concessions under group management or control.
2. Committed to implementing a zero-deforestation policy and a moratorium on land management that clears natural forests, drains peat, and / or violates the rights of indigenous peoples or local communities.
3. Open commitment to restore all environmental and social damage caused by PT Fajar Surya Swadaya's activities since operating in East Kalimantan.

The Anti-Forest Mafia Coalition urges APP and APRIL to:

4. Stop all timber purchases from PT Fajar Surya Swadaya, until the Djarum Group meets the recommendations above.
5. Publish all HCV assessment results prepared for PT Fajar Surya Swadaya and officially send them to the HCV Resource Network for technical peer review.
6. Publicly document any reports of violations of sustainability policies, and publish them on respective websites, and send emails to all sustainability stakeholders.
7. Fully implement an accountability policy for any pulpwood purchase agreements only after the supplier review process is complete.

The Anti-Forest Mafia Coalition urged Djarum, APP, and APRIL:

8. Committed to adopting a truly independent, transparent and accountable mechanism to monitor company commitments to zero-deforestation, responsible peatland management, and not violating the rights of local communities.

Full report: Kalimantan Forest Destruction
 

Contact:
Syahrul Fitra (Auriga) syahrul@auriga.or.id
Nur Maliki Arifiandi (WWF Indonesia) nmarifiandi@wwf.id
Aidil Fitri (Hutan Kita Institute) aidilplg@gmail.com
Sergio Baffoni (Environmental Paper Network) sergio.baffoni@environmentalpaper.org