Submitted by: The Two Sides Team February 15, 2013
Major developments in Indonesian paper production
News is breaking concerning an important announcement from APP, one of the world's largest paper manufacturers and a company which has attracted adverse publicity in recent years. Mark Rushton of RISI has just published the following report.
This comes to you straight after the event in Jakarta, Indonesia's capital, where Asia Pulp & Paper has announced a complete end to the clearing of any natural forests from across its supply chain, from immediate effect. This includes all of the company's suppliers across the board.
Actually, APP has already ceased completely. "All machines were switched" off on Thursday of last week when I arrived in the country but I was under strict instructions not to release the news, so that information could go out simultaneously worldwide. Basically, along with the complete suspension of natural forest clearance, the company has also announced programs for the protection of all forests, including those on peatlands, High Carbon Stock assessments and adoption of international best practice for the rights of indigenous peoples and local communities. It has also committed to independent monitoring by NGOs – an important move. The announcement was made as part of APP's new Forest Conservation policy during the quarterly update to its 'Vision 2020' Sustainability Roadmap.
And if importance is to be defined by people; then this was up there with any of the events that I have attended in my 15 years of reporting in the pulp and paper industry. The speakers included Teguh Wijaya, chairman of the APP Group, and a man not often seen in the glare of the world's press (who were there in droves) and Indonesia's ministers of Forestry and ministers of Trade. Chairman Wijaya gave the welcome speech to an audience that included most of the big NGO names, including most notably Greenpeace senior campaigners who have given a cautious, but very warm welcome to the announcement, and indicating clearly that APP has made great strides. Clearly it's an indication that something very significant has changed.
In his speech, APP chairman Wijaya mentioned that climate change is one of the most important reasons why this move has been made, and quoted recent natural disasters such as Hurricane Sandy in the US. And closer to home recently, in Jakarta, when the streets of the city were completely awash with floodwater, unusual even in this part of the world. Wijaya said: "Climate change is a fact and we need to take action now in protecting the forests we already have and by planting more trees – we currently plant more than a million a day. At APP we have a saying that if you 'use more paper, we plant more trees', let's make the world a botanical garden."
Read the full RISI report on these developments here.
WWF, a long-time critic of APP's forestry activities, welcomed the initiative but urged caution. They issued a press release which stated:
WWF welcomed the announcement by the Sinar Mas Group's Asia Pulp & Paper (APP) stopped clearing Indonesia's tropical forests and peatlands to allow an assessment of their conservation and carbon values. But the conservation organization urged paper buyers to wait for confirmation of the claims through independent monitoring by civil society before doing business with APP.
"APP today committed to most of WWF's calls. If the company follows through on this, it could be great news for Indonesia's forests, biodiversity and citizens," said Nazir Foead, Conservation Director of WWF-Indonesia.
"Unfortunately, APP has a long history of making commitments to WWF, customers and other stakeholders that it has failed to live up to. We hope this time the company does what it promised. WWF plans to independently monitor APP's wood sourcing and forestry activities for compliance with its commitments and regularly update stakeholders on the findings," Foead added.
APP runs two of the world's largest pulp mills on Sumatra, where it produces the pulp for the toilet paper, tissue, copy paper and packaging that it sells worldwide. The company and its wood suppliers are responsible for clearing more than 2 million hectares of rain forest on the island since beginning operations in 1984, an analysis by the NGO coalition Eyes on the Forest found.
"WWF hopes that APP's new commitments will do more than just stop its own bulldozers, including protecting the natural forests in its concessions from all illegal activities and mitigating the long-term negative impacts its practices have had on all the peat lands, forests, biodiversity and local people in Sumatra and Borneo for which these commitments have come too late," Foead added.
"WWF has long called on responsible businesses to avoid sourcing from APP and until there is truly independent confirmation that APP has stopped draining peat soils and pulping tropical forests with high conservation value, we continue to urge paper buyers to adopt a wait for proof stance," said Aditya Bayunanda, GFTN and pulp & paper manager of WWF Indonesia.
Mr Teguh Widjaya, the patriarch of the family's pulp and paper business, oversaw the announcement today that no member of his APP group operating in Indonesia or China will accept any tropical timber felled in Indonesia after 31 January 2013 until company consultants have completed a full 'high conservation value' and a 'high carbon stock' assessment of their forest concessions.
However, the company inserted a loophole in the commitment saying that for an indefinite period of time APP mills would accept trees felled before 31 January.
As a sign of good faith and the first demonstrable milestone, WWF calls on APP to have moved the supply of already-cut tropical timber its suppliers cleared before the self-imposed 31 January 2013 moratorium by 5 May 2013, the due date of its next quarterly forest policy report.
A fully implemented moratorium on pulping forests with high conservation and high carbon value would have a profound impact on Indonesia's biodiversity, as well as on Indonesia's carbon emissions. WWF urges all of the country's pulp producers to stop using tropical forests.
You can access their comments here.