We refer to the “Open Letter Concerning Threats From The Proposed Expansion Of Pt. Oki Pulp And Paper Mill – App Sinar Mas” published by a coalition of NGOs on 23rd August 2021.
The open letter accuses Asia Pulp & Paper (APP) Sinar Mas of various allegations with no merit. These claims are not new and have in fact been asked and answered in the past.
More importantly, the Environmental Impact Assessment for the planned expansion of OKI, which is referenced by these parties’ report is an independent assessment submitted to the government, and should there be an issue, it would be apparent in the assessment.
In terms of OKI expansion, APP made it quite clear through a public statement published on 23rd July 2021 that the proposed expansion will be done in several phases over the years and no specific timeline or when the targeted expansion will be achieved. The expansion is also largely dependent on the fluctuation of the market demand, which also includes demand on downstream products. Please refer to the full statement 23 July 2021.
FPIC & Social Conflict
Free, Prior and Informed Consent continues to be implemented across all developments on APP supplier concessions, and substantial progress has been made in resolving prior conflicts. APP’s dispute resolution rate is currently at 55%. APP also engages in multi-stakeholder dispute resolution and complies with all legal requirements, including a community’s right to privacy throughout the process.
Furthermore, APP works closely with communities through its flagship program, the Desa Makmur Peduli Api (DMPA), which integrates forestry and farming systems to address one of the root causes of deforestation, fires and conflict; the issue of rural poverty. The DMPA program has been shown to improve livelihood and new targets have been adopted in 2020 to improve the income of participants to at least the regional minimum wage.
APP has never started any of the fires, but has a responsibility to put out fires that threaten its supplier concessions. Across 2019 despite fires having occurred on APP supplier concessions, as a result of fire from agricultural activities or encroachment, by improving the community's access to better, more sustainable, livelihoods, APP is not only able to improve lives, but to also reduce fire risk and deforestation in areas in and around its supplier concessions.
Please refer the statement by APP on 23 October 2020.
APP and its pulpwood suppliers do not engage in deforestation, and no pulpwood from deforested sources have entered the APP supply chain since the implementation of the 2013 Forest Conservation Policy. All our suppliers have undergone a Supplier Evaluation & Risk Assessment (SERA) process to ensure they comply with our sustainability commitments. These suppliers and the SERA reports are made available on our Sustainability Dashboard.
We believe the work we do, including our work in innovation, conservation and environmental impact, is critical to our continued survival as a business. Through our FCP and Sustainability Roadmaps, we are demonstrably making progress along a complex and challenging. APP is happy to engage constructively with committed stakeholders to evolve and continuously improve in the journey of transformation.