Paper industry and deforestation in Indonesia
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Paper industry and deforestation in Indonesia

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In order to supply their pulp mills, Indonesian paper companies have resorted to landgrabbing, by obtaining the use of land without the free, prior and informed consent of all affected communities.......

In order to supply their pulp mills, Indonesian paper companies have resorted to landgrabbing, by obtaining the use of land without the free, prior and informed consent of all affected communities. Despite paper company assurances that they respect local people’s rights, in fact thousands of Indonesian communities are now living beside pulp plantations without having had the opportunity to have their say in how the land should be utilised. Too often they have been deprived of a vital source of food, fibre, medicine, timber, firewood or cash crops. Loss of natural forest also has devastating impacts on wildlife and biodiversity, including endangered species such as the Sumatran tiger, rhinoceros and orang-utan. In addition, timber extraction on Sumatra’s deep peat soils causes alarming levels of carbon emissions.

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  • Unpublished data, WWF Indonesia Peatland is based on WI and EFS
  • Unpublished data, WWF Peatland is based on WI and EFS
  • Unpublished data, WWF Indonesia Peatland is based on WI and EFS

Transcript

  • 1. European Environmental Paper Network
  • 2. EEPNWWF International, Greenpeace International, Finnish Nature League, Finland, FinnishAssociation for Nature Conservation, Finland, Milieudefensie, Netherlands, FERN, Belgium,Robin Wood, Germany, British-Russian Ecocultural Network, UK, worldforests, Scotland , Terra!onlus, Italy , Friends of the Siberian Forests, Russia, ForestEthics, England, Friends of the EarthEngland, Wales & Northern, Ireland, UK , Urgewald, Germany, Bruno Manser Fonds,Switzerland, Reforesting Scotland, Scotland, Friends of the Earth Forest Network (Melbourne),Australia, PRO Regenwald, Germany, Friends of the Earth Finland, Finland, Watch Indonesia,Germany, Forest Peoples Programme, England, Boreal Forest Network, Canada, BorneoOrangutan Survival Foundation (BOS), Germany, Estonian Green Movement, Estonia, EstonianFund for Nature, Estonia, SPOK, Russia, Tropica Verde, Germany , Goongerah EnvironmentCentre, Australia, Environment East Gippsland, Australia, Norges Naturvernforbund (FoENorway), Norway, Kola Biodiversity Conservation Centre, Russia, Youth and EnvironmentEurope, Czech Republic, GLOBAL 2000, Austria, Safier, Belgium, Bond Beter Leefmilieu,Belgium, Taiga Biological Station, Canada, Swedish Society for Nature Conservation, Sweden,AK Regenwald Aschaffenburg, Germany, Teachers for Forests, Australia, BiodiversityConservation Centre, Russia, Initiative 2000plus Berlin, Germany, Ecodevelop, Germany,International Animal Rescue, Malta, Salva le Foreste, Italy, ARA (Working Group on Rainforestsand Biodiversity), Germany, Amici della Terra, Italy, Ecoinstitut Barcelona, Spain, ForumEkologie & Papier from Germany, The Polish Green Network, Movement for Defense of theKhimki Forest, Baltijos aplinkos forumas - Lithuania, Timberwatch, South Africa, Natur ogUngdom / Nature and Youth, Norway, WALHI/Friends of the Earth Indonesia
  • 3. Common Vision for transforming the European paper industry• Reduce paper consumption.• Source fibre responsibly.• Reduce reliance on virgin tree fibre• Ensure social responsibility.• Ensure clean production.
  • 4. 8,000 years agoWorld Resources Institute
  • 5. Today, just one fifth of the worlds original forest cover remains in large tractsWorld Resources Institute
  • 6. A CASE STUDYWhere paper production leadsto massive forest destructionhuman rights abuses,biodiversity loss andclimate change…
  • 7. Indonesia•19% of the world’s plants•12% of mammal species•15% of reptilian/amphibian species•17% of bird species
  • 8. WWF 2010
  • 9. 72% of forests is lost already1.7 millions ha / year51 square kilometres / day300 football field / hour
  • 10. Aceh Loss of Natural Forest 1990 - 2008 1990 Peatland forest: 7.5 million ha (85% forest cover) Non peatland forest 17.7 million ha (50% forest cover) North Riau Sumatra West Sumatra Jambi South Bengkulu Sumatra LampungWWF 2010
  • 11. Aceh 2008 1985 - 2007 Peatland forest: forest2.4 million ha (28% forest cover) Natural loss on peat: 37% of total loss Loss since Natural forest loss on non peat: 63% of total loss 1985: 5.0 million ha (67% loss) Non peatland forest : 10.2 million ha (29% forest cover) 2007 7.5 million ha (42% loss) Loss since 1985: Natural forest 2007 remaining on peat: 19% Natural forest remaining on non peat: 81% North Riau Sumatra West Sumatra Jambi South Bengkulu Sumatra LampungWWF 2010
  • 12. Natural forest loss in Sumatra Indonesia’s national production of two commodities CPO Production Pulp Production 16,000,000 6,000,000 14,000,000 5,000,000 12,000,000 4,000,000 10,000,000 8,000,000 3,000,000noaey 6,000,000rt/ 2,000,000 A n o d a e y r 4,000,000 t / i 1,000,000 2,000,000 0 0
  • 13. Two powerful & controversial Indonesian cartels largelycontrol the market for cheap commodities Sinar Mas Group - Vertically integrated owner of Asia Pulp & Paper, PT Aria Abadi, Golden Agri Resources, PT SMART, etc. Royal Golden Eagle Group - Affiliated with Asia Pacific Resources International (APRIL), Riau Andalan Pulp, PT Asian Agri Agro, etc. Facts & figures SMG and RGEG control over 80% of Indonesian pulp capacity and 20% of crude palm oil production. APP and APRIL have 2 of the world’s largest pulp mills in Riau, Sumatra separated by less than 100km. SMG has an oil palm land bank of 1.3 million hectares, the world’s largest.
  • 14. Asia Pulp & Paper (APP): one of theworld’s largest pulp & paper companiesand the largest in Indonesia and China
  • 15. A "pyramid companies and practiceainterplay between private and publicbusinesses”Joe Studwell, Asian Godfathers
  • 16. Between 1995 and 2009550,000 ha of tiger habitat240,000 ha of elephant habitat1,500 ha of orang-utans range forests
  • 17. 90% of APP and APRIL new concessions ondeep peat (>4m. = illegal*)Peat: up to 300 t. carbon / haIndonesia is worlds third largest greenhousegas emitter.* Presidential Decree Number 32/1990, Government Regulation Number 26/2008and Law Number 26/2007.
  • 18. Social impacts
  • 19. Conflicts with local communities The case of Suluk Bongkal Police Fire Bomb and Evict Community in Arara Abadi Concession (APP)
  • 20. APP & APRIL’s impacts APP’s pulp production expansion plans Province: Riau Jambi S. Sumatra W. Kal E. Kal PapuaCurrent capa.: 2 mill t/yr 0.7 mill t/yr 0 mill t/yr 0 mill t/yr 0 mill t/yr 0 mill t/yr New capa.: +2 mill t/yr +1.3 mill t/yr + 2 mill t/yr + 2 mill t/yr + 2 mill t/yr + ? mill t/yr 31 - Borneo Lowland and Montane Forests 14 - Southern New Guinea Lowland Forests26 - SumatranIslands Lowlandand MontaneForests http://www.nationalgeographic.com/wildworld/ Global 200 map (colored areas are Global 200) APRIL in Riau: APRIL in E. Kal: 2.2 mill t/yr APRIL’s pulp production expansion plans 0 mill t/yr +1.5 mill t/yr + ? mill t/yr
  • 21. • 2009: concessions on around 5% of Riau remaining natural forests.• 2010 new concessions in the landscapes of UNESCO Giam Siak Kecil-Bukit Batu Biosphere Reserve, Bukit Tigapuluh, Kampar Peninsula, Kerumutan and Senepis-Buluhala.
  • 22. Market expansion
  • 23. Acquisitions• Fibre Excellence Tarascon (France)• Fibre Excellence St-Gaudens(France)• Scheufelen (Germany)• Mackenzie (Canada)• Meadow Lake Mechanical Pulp (Canada)• Prince Albert Pulp (Canada)• Howe Sound Pulp and Paper (Canada)• Northern Resources (Canada)• … the next?
  • 24. Greenwashing - certification“the majority of APP’s production facilities hold Chain-of-Custody certification from LEI and PEFC.”
  • 25. Greenwashing -certification“PEFC Chain ofCustody cannot beclaimed to demonstratea company’ssustainability”
  • 26. Greenwashing - Climate“When plantation sequestration is considered, APP’s weighted average carbon footprint is reduced considerably, close to neutral per ton of paper industry”
  • 27. 102°0E 102°30E 103°0E 103°30E 104°0E Kampar Kerumutan Landscape 2008 Natural Forest1°0N APP Associated Concession APRIL Associated Concession The Kampar Peninsula0°30N ¨0°0 Kilometers 0 5 10 20 30 40 95° E 100° E 105° E 5° N 0° 0°0°30S 5° S 95° E 100° E 105° E 102°0E 102°30E 103°0E 103°30E 104°0E
  • 28. Greenwashing - Climate
  • 29. Greenwashing - Climate“APP’s emissions in 2006 is 67-86 million tons of CO2 from its Indonesian pulp and paper mills and forest concessions. APP’s 2006 total emissions were higher than those of 165 countries around the world.”
  • 30. Greenwashing “APP and its pulpwood suppliers play a leading role in the sustainable protection of endangered flora and fauna”- Giam Siak Kecil - Bukit Batu- Taman Raja- Bukit Tigapuluh- Senepis Sumatran Tiger Sanctuary
  • 31. Greenwashing“APP has a zero toleranceapproach to illegal timber”
  • 32. RAMINThe trade oframin(Gonystylusspp.) isbanned underIndonesia’slaws andnationalCITESregulations.
  • 33. RAMINPT SatriaPerkasaAgung,micro-delination,Riau,2008 (tosourceAPP’sIndah KiatPerawangmill)
  • 34. Commercials
  • 35. Greenwashing - ClimateThe Dutch Advertising CodeCommission (DACC) judgedthat APP’s TV and paperadverts, which positions APP asa company that cares about theenvironment, are misleadingthe public.
  • 36. La rete politica
  • 37. • July 2010: joint NGOs letter to the paper industry
  • 38. The answer from the market• Disney, Mattel, Kraft, Kroger, National Geographic, Walmart, Xerox, Staples / Corporate Express (USA)• Tesco, Robert Horne, Marks & Spencer, Parragon, Sainsbury, Unilever (UK)• Mondadori, Burgo, Rusconi, De Agostini, Intimissimi/Calzedonia (Italy)• Idisa Papel, Susaeta, Unipapel (Spain);• Metro Group, Adidas, Tchibo, Deutsche Post, Burda, Karlstadt, Metro, Montblanc (Germany)• Danone, Carrefour, BNP-paribas, Leclerc (France)• Lego (Denmark)• HSBC, Nestlé (Switzerland)• Cartamundi, Delhaize (Belgium)• ING (The Netherlands)• Unisource (Canada)• Spicers (New Zealand)
  • 39. APP commitment to stop pulping natural forests and relying on plantation’s fibre.• 2004  commitment by 2007• 2007  commitment by 2009• 2011  commitment by 2015• …next?
  • 40. South Sumatra• New huge paper mill in Pulai Gading with a line of a capacity of between 1.5 and 2.0 million tonnes per year of pulp.• A second pulp mill in Jadi Mulya.
  • 41. • November 2012: joint NGOs letter to the Banks and financial institutions