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null Responding to Queries on OKI Mill

Responding to Queries on OKI Mill

Asia Pulp and Paper (APP) Sinar Mas has been made aware of some concern and queries with regards to OKI Pulp and Paper mill expansion plans and would like to provide some clarification on this.

The supply will continue to be sourced from the existing production areas as approved by work plan submitted to the government.

Aside to APP’s existing production area, it continues to run a strict process on all potential suppliers using the Supplier Evaluation and Risk Assessment (SERA) process.

APP will review their performance and sustainability commitments, and only companies passed SERA test are approved to become suppliers. The details of the suppliers are available on APP’s sustainability Dashboard.

APP’s Forestry Research & Development (R&D) also continues to increase the Mean Annual Increment (MAI) which could optimize the utilization of land. Around the same time, APP’s R&D will also identify the latest technology to increase raw materials efficiency and in addition to that we are also partnering with the local communities through social forestry.

The proposed expansion will be done in several phases over the years and will take time as such, APP is unable to provide the timeline or when the targeted expansion will be achieved.

APP will also continue to observe the fluctuation of the market demand, which also includes demand on downstream products, which will have an impact on the expansion phase. Another consideration is the availability of wood supply as indicated above.

OKI Pulp & Paper mills capacity increase is aimed to meet market needs. Having said that, this wasn’t a recent plan, this was already thought off when OKI was built in 2016. OKI has been equipped with the most advanced environmental technology currently available. The mill will be powered by clean and self-sufficient energy generated from the pulp production process and wood bark gasification. The mill is equipped with the most advanced environmental technology currently available is able to generate more than 90% of its power requirements from renewable energy from the pulping process included biomass.

The expansion is also in compliance with the Government’s policy to increase environmentally based investment as stated in Job Creation Act aimed to provide employment and business opportunities.

OKI Mill was built as an integrated mill which also supports export-oriented industries.

In terms of addressing other concerns;

Deforestation – APP has mapped over half a million of protected area within APP and it’s supplier concessions and occurrence of any forest cover change is published on the dashboard using the Radarsat-2 satellite in partnership with MDA. Additionally, for third-party verification, the dashboard is to be audited by a Big-Four and will proceed to publish these results as well.

APP stand is very clear, and would like to reiterate that APP stands firm on our Forest Conservation Policy, which underscores its zero-deforestation pledge and commits it to using only sustainably-sourced fibre.

FPIC - APP has since 2013, adopted FPIC and other human rights commitments as an integral part of APP’s 2013 Forest Conservation Policy. Since then, APP has worked tirelessly to meet its commitments to zero-deforestation and uplifting communities, including ensuring the principles of FPIC are properly carried out with regard to land rights. We also disclose progress in our annual Sustainability Report, a report which is verified by third parties. We also continue to address this issue and respond to any queries raised through our Annual Stakeholder Advisory Forum.

We ensured that FPIC was conducted prior to construction to ensure that legal and traditional rights of the local community were respected. It is not the company’s policy to use any form of violence or intimidation in the resolution of conflict between the company and the community and we take firm action against any staff or vendor who violates our FPIC policy.

Fire - Fires does not only damage the environment and the surrounding community, but also severely impacts APP operations. Which is why APP has conducted a mapping of fire-prone areas up to the distance of 5 KM from the concession border to identify areas with the most potential of forest fire. This was done within the vicinity of the company's concession area and the Ogan Komering Ilir area, known as a dry prone district.

For mitigation strategies aimed at reducing the risk of fire hotspots, trained fire-fighters were deployed in several points near the company’s concessions. The fire-fighters are equipped with complete equipment, water bombing helicopters, patrol cars, fire extinguishers, fire towers and surveillance cameras.

The prevention strategy is carried out in collaboration with the community through the Integrated Forestry and Farming System, working together with companies and community groups for socialization activities and educating the public on the danger of slash and burn to clear the land. APP also joined forces with the Indonesia National Armed Forces, National Police and Indonesian National Board for Disaster Management to work on fire prevention and mitigation.

For further clarifications or enquiries, please contact letchumi_achanah@app.co.id (+6012 392 5343) 

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