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The Executive Summary is prepared by APP / Sinarmas, not an independent auditor's report.
- APP / Sinarmas does not deny claims that its employees and / or former employees are shareholders, directors and commissioners of a pulp supply company that APP previously described as " independent ".
- APP acknowledges that the four wood suppliers involved in the 2015 forest and land fires are “partners” with significant influence, including possible ownership and management links.
- APP admits buying wood from PT Fajar Surya Swadaya (FSS) , a supplier from East Kalimantan that is doing deforestation .
- In connection with previous denials , APP acknowledges a partnership relationship with PT Sarana Bina Semesta Alam (SBSA), a wood chip mill in East Kalimantan, which has received wood from deforestation of natural forests.
- The ownership of PT Muara Sungai Landak (MSL), a plantation company that causes deforestation and destruction of peatlands , is attributed to ex-employees. Even APP's Sustainability Director is currently a former shareholder.
- The list of companies declared by APP does not cover the entire APP / Sinarmas corporate structure.
Those are the things that stick out from the Executive Summary entitled APP Assessment on Its Link With Industrial Forest Plantations in Indonesia which was published by APP / Sinarmas a month ago, March 15 2019.
The Executive Summary was presented as fulfilling the commitment to involve a third party for the entire business chain which was submitted in response to the Coalition Anti Forest Mafia report entitled But, Open Your Mask First.
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APP's independent suppliers allegedly controlled by APP / Sinarmas through a nominee structure
May 30 2018, the Anti Mafia Hutan Coalition published a report entitled Tapi, Buka Topengmu which was published by the Anti Mafia Hutan Coalition on May 30 2018, revealing indications of the linkage of 24 (out of a total of 27) timber supply companies to APP that are declared to be “independent partners”.
This report also examines the ownership structure of APP / Sinarmas Group which is allegedly flowing far to companies in tax-haven countries (offshore jurisdiction).
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APP will review its entire forestry business and engage third party auditors
A day later, May 31 2018, APP / Sinarmas published a press release responding to But, Take Your Mask First
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The APP industry is suspected of receiving timber from the deforested FSS and SBSA areas in East Kalimantan
APP / Sinarmas has not yet reported any progress regarding the review, on 5 August 2018 the Anti-Forest Mafia Coalition found a supply of deforestation-produced timber entering APP's industry , PT Indah Kiat Pulp & Paper, which received supplies from PT Fajar Surya Swadaya (FSS) , a HTI company in East Kalimantan.
APP confirmed these findings, and argued the incident was an administrative error . APP then uses the wood that has accumulated in the industry for pallets and industrial fuel.
This is certainly not in accordance with APP's zero deforestation commitment.
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APP denies ownership or control over SBSA
In the findings above , the Anti-Forest Mafia Coalition also stated that there is another factory affiliated with APP / Sinarmas, PT Sarana Bina Semesta Alam (SBSA), a chip wood mill in East Kalimantan, which received wood supplies from FSS. However, SBSA also buys natural wood natural wood through clear cutting of PT Silva Rimba Lestari (SRL).
August 15 2018, APP denied ownership or control of SBSA . In fact, PT SBSA's track record of shipping wood has been sent to APP's pulp mill in China, Hainan Jinhai Pulp Mill.
As it turns out, 7 months have passed, APP through the Executive Brief now acknowledges that it has "significant influence" with its "partners" SBSA.
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FSC has postponed the preparation of a roadmape termination of its dissociation with APP
16 August 2018, the Forest Stewardship Council (FSC) published Status update # 7 on the disassociation of FSC from APP , which delayed the process of drafting the roadmap for ending its dissociation with APP.
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APP published a report on its links to HTI companies in Indonesia
However, it does not cover APP's entire corporate structure. Nor is it transparent about APP's relationship with companies that destroy forests and peatlands.
The Anti-Forest Mafia Coalition again urged APP / Sinarmas to comply with Presidential Decree 13/2018 by disclosing information on companies under APP / Sinarmas control in all jurisdictions globally. In addition, APP / Sinarmas must release a publicly audited financial report to APP / pulpwood supplying HTI companies.
Read more: APP/Sinarmas acknowledgment of its relationship with problem companies
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