WWF Monitoring Brief October 2006:
Asia Pulp & Paper (APP)
Hiding Destruction behind False Advertisements:
APP continues to ignore calls for conservation beyond “legal compliance”,
and even fails on the latter.
WWF Indonesia
WWF Indonesia has been working in Riau Province, Sumatra since 1999, aiming to preserve central
Sumatra’s biodiversity in fully functional ecosystems that allow continued co-existence of man andwildlife and provide all the environmental functions for a developing human population. WWF supports
the Government of Indonesia’s policy of a country-wide moratorium on the conversion of natural forests,
and the recent Decree by the Minister of Forestry to establish Riau as a centre for elephant conservation,
including a stop to the conversion of natural forest for any purpose 1 . WWF asks all actors to support thesepolicies: Indonesian Government agencies at all levels, companies and community groups involved inforest clearing, companies using or buying products sourced from Riau’s pulp and palm oil mills.
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To achieve its vision for Riau, WWF believes that no new forest conversion licenses should be issued in
Riau and no forests should be cleared under existing licenses without prior assessment of High
Conservation Values in and around the forest to identify the measures needed to maintain and enhancesuch values. Such assessments should apply the High Conservation Value Forest (HCVF) Toolkit forIndonesia 2 , which recognises crucial forest values - biodiversity, habitat for key endangered species,
environmental services for cities and villages, and cultural and economic importance for local
communities.
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WWF and local NGO partners, through the Eyes on the Forest project, are monitoring the environmental
performance of Asia Pulp & Paper Co. Ltd. (APP) and Asia Pacific Resources International Holdings,
Ltd. (APRIL), two driving forces behind forest loss in Riau Province. WWF Indonesia issues periodic“Monitoring Briefs” on the activities of the two companies, including their contribution to the protection
or loss of forest conservation values in Riau. Monitoring Briefs and a related background paper “TheEleventh Hour for Riau’s Forests – Two pulp and paper companies will decide their fate 3 ” are posted on
WWF Indonesia’s website 4 .
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The truth behind APP’s full page advertisements:
APP continues its destruction of High Conservation Value Forests
On 7 August, APP placed a full page advertisement “APP’s Commitment:
Conservation beyond Compliance” in the New York and London Times 5 . On 15
August, APP published a “Stakeholder Update” distributed to hundreds of its
customers. APP portrayed itself as a forest and wildlife protecting company. However,in reality, APP’s performance does not match its claims. APP refuses to commit
to “conservation beyond compliance” and continues to destroy High
Conservation Value Forests (HCVFs) and threatens the Sumatran tigers,
elephants and other wildlife that rely on them.
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In this Monitoring Brief, WWF reveals some of the false statements in the APP
advertisements and explains the links between APP operations and natural forest loss
in the Province of Riau.
While this brief focuses on APP’s operations in the Province of Riau, where WWF and other NGO havedozens of observers on the ground, readers should keep in mind that APP not only destroys Riau’s forests but
also those in other provinces in Indonesia. One such province is Jambi where APP has been producing pulp
for many years and is currently acquiring large additional concessions. Other potential areas of destruction
are the provinces of South Sumatra, West Kalimantan and East Kalimantan, as well as other countries where
APP is sourcing wood chips. Many forests earmarked for clearing and destruction by APP have highconservation values.

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APP’s “legal compliance” continues to destroy High Conservation Value Forests
APP’s advertisement in the New York and London Times:

FACT 1: APP continues large scale clearing of High Conservation Value Forests, defined by the Forest
Stewardship Council (FSC) as “forests of outstanding and critical importance due to theirenvironmental, socio-economic, cultural, biodiversity and landscape values”. WWF recommends that
all Indonesian forests earmarked for clearing are first assessed by using the HCVF Toolkit forIndonesia 6 to ensure all HCV areas are identified and protected. APP initially adopted this process forfour of its many Forest Management Units (FMUs), but abandoned it in June 2006 7 . APP now claims it
assesses and protects “high conservation value forests” in other FMUs according to Indonesian laws
and regulations. However, in practice, APP does “business as usual”, destroying forests important forthe survival of Sumatran elephants, tigers and many other endangered species, pretending to apply
Indonesian laws and regulations, which are poorly enforced and open to varying interpretations.
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The concept of HCVF was first developed by the Forest Stewardship Council (FSC) 8 in 1999 as their"Principle 9: Maintenance of High Conservation Value Forests" 9 . To ensure that High Conservation Values
are protected, FSC Principle 9 states that: “Management activities in high conservation value forests shallmaintain or enhance the attributes which define such forests. Decisions regarding high conservation value
forests shall always be considered in the context of a precautionary approach.” 10 In practice this means thatno conversion licenses should be issued and no forests should be cleared without prior assessment of High
Conservation Values in the forest and its surrounding landscape combined with identification of the measuresneeded to maintain and enhance such values.
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APP has been conducting large scale clearing of natural forests in Riau without any proper prior assessmentof High Conservation Values. Since 2001, WWF and key APP customers in several countries have called on
APP to identify, manage and monitor HCVFs following the High Conservation Value Forest (HCVF) Toolkit
for Indonesia 11 , which was developed by practitioner communities in Indonesia as a consistent and practicalguide for identifying, managing and monitoring HCVFs.
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The HCVF Toolkit for Indonesia recognises six types of High Conservation Values in forests including theirbiodiversity, their function as habitat for key endangered species, their environmental services fordownstream cities and villages, and their cultural and economic importance for local communities. The
HCVF Toolkit for Indonesia requires HCVFs to be identified through a multi-stakeholder, consensus-based
approach, such that the results have buy-in, acceptance and credibility. The process requires a wide range ofexpertise - from biology to social science, from forest management to GIS. It relies on scientific research toidentify biologically important forest stands and those critical for maintaining ecosystem functions andpopulations of endangered species and it requires consultation with local communities to identify forests thatserve community needs and help maintain their cultural identity.
In 2004, APP agreed to adopt the HCVF concept to protect HCVFs according to the HCVF Toolkit forIndonesia in four of its dozens of Forest Management Units (FMUs) and hired the Rainforest Alliance’s
SmartWood Program to monitor the company’s performance in managing around 120,000 hectares of
12
HCVFs. In October 2005, SmartWood conducted the first audit and the audit reports , available uponrequest, reported mismanagement of the HCVF forests that the company had promised to protect (seeFACTS 6 and 8). During a meeting with WWF on 20 June 2006, APP refused to make a commitment toprotect any further forests based on HCVF assessments using the HCVF Toolkit for Indonesia.
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APP continues to selectively advertise positive aspects of its “collaboration” with SmartWood on the HCVF
protection in the four FMUs, without mentioning the negative findings in SmartWood’s first monitoring audit.
For FMUs not monitored by Smartwood, APP is touting a new theme: “high conservation value forest
protection based on legal compliance”. APP continues to use the phrase “high conservation value forests”,
however, APP’s “hcvf” protection can be best described as “business as usual” hiding behind “legal
2compliance”. Legal compliance in the Indonesian context has very little meaning for conservation. Laws areopen to wide interpretation and there is little if any enforcement or punishment for violations. APP’s “legal
compliance” has allowed the company to clear 825,000 hectares of natural forests between 1988 and 2005
and will continue to allow APP to clear more forests (see FACT 2). APP says it “engages and works closelywith a variety of key stakeholders… on the identification, verification and management of conservation
areas”, however, apart from the four FMUs mentioned above where proper HCVF assessments wereconducted by independent professional entities, WWF found no evidence that the assessments APP refers toin its campaign actually exist (FACT 5).
APP’s newspaper advertisement in the New York and London Times:

FACT 2: APP’s uses national statistics because they present a more favourable picture than theequivalent statistics for the provinces in which APP operates. While overall 38.8% of Indonesia’sforests may be protected (on paper if not in practice), the Ministry of Forestry reported that only
14.4% of the forests that remained in Riau as of 2002-2003 were protected 13 . The only Sumatranprovinces in which APP operates its pulp mills, Riau and Jambi, together accounted for 37.1% of theforests lost on the island of Sumatra between the mid 1980’s and early 2000’s according toGovernment figures. In Riau, APP has been responsible for the loss of 29% of the province’s forest
cover (825,000 hectares) in 17 years of operation up to 2005.
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One of the impacts of this rapid forest loss is the dramatic decline of Riau’s Sumatra elephantpopulation. Elephant numbers were estimated at 1067-1617 in eleven ranges in 1985 14 , 709 in 16
ranges in 1999 15 , and 353-431 in 15 ranges in 2003 16 17 . In addition, WWF estimates that APP is on
track to destroy at least 18% of the natural forests remaining in Riau as of 2005 before the company
could possibly (against all historical and current evidence) become a 100% plantation wood based
company.
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APP does not provide the source of the data it quotes. However, publicly available information from the
Ministry of Forestry on forest cover based on Landsat images during 2002 and 2003 18 shows that there was
93.9 million hectares of “forests i ” in Indonesia. The Ministry of Forestry data defines “Conservation Forests”
as “forests” inside Protected Forests and Nature Reserves & Wildlife Sanctuaries (based on National Forest
Land Use Consensus Plan, TGHK). Based on this definition, 38.8% of “forests” remaining in Indonesia and47.8% of “forests” remaining on the island of Sumatra ii were designated for conservation.
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However, Sumatra’s provinces differ widely in the percentage of forests designated for conservation. The
Ministry of Forestry’s data for Sumatra (Table 1, columns E to I) show that in dramatic contrast to all otherprovinces, Riau Province, where APP has its main pulp mill, only 14.4% was declared as “Conservation
Forests”, lowest portion among the Sumatra provinces (column I). Comparing this data with the forest cover
data produced by RePPProT iii for the mid 1980’s (Table 1, columns B to D), we can conclude that Riau andJambi, together accounted for 37.1% (3.3 million hectares) of the forests lost on the island of Sumatra
between the mid 1980s and mid 2000s (column K. Riau and Jambi are highlighted in yellow).
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Riau’s relatively large forest cover and small portion of conservation forests for official conservation are thereason why both WWF and APP have been focusing their efforts on the province’s forests. Riau’s forests areiUnder the Ministry of Forestry definition, “Forest” in this case includes primary natural forest (Hutan Primer), secondary naturalforest (Hutan Sekunder) and plantation (Hutan tanaman).
ii
Excludes Bangka Belitung.
iii
Regional Physical Planning Programme for Transmigration Project, the UK government-funded nationwide mapping exercise
undertaken as part of the Government of Indonesia’s transmigration program.
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among the Sumatran Island Lowland and Montane Forests which WWF has designated as one of the Global
200 Ecoregions 19 because their biodiversity is among the highest in the world, they are critical habitat for
Sumatra’s severely endangered tigers and elephants, however, these forests are highly threatened by the pulp
& paper industry. APP is clearing these forests because there is nowhere else in the world where they can get
so much natural forest wood cheaply and easily. Access to natural forest timber is critical to APP, especially
now that it is becoming clear that its efforts at building renewable plantations have not been successful.
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RePPProT (mid 1980's)1
Total
Land
Area
(ha)

Province

Forest
Area
(ha)

%

MoF (2002-2003)2
Total
Land
Area
(ha)

ForestArea(ha)%
ForestCoverForest Loss
%
%
Total
Total
Loss
Loss
in
in
Sumatra Indonesia
JK
L
769,9308.6%
3.0%
827,940
9.3%
3.2%
729,0808.2%
2.8%
1,923,170
21.6%
7.5%
1,386,240
15.5%
5.4%
2,506,630
28.1%
9.7%
340,7103.8%
1.3%
438,2104.9%
1.7%
8,921,910 100.0%
34.6%
25,776,170
100.0%"Conser%vationProtecForest"
tion
(ha)

Forest
Loss
(ha)

A
B
C
D
E
F
G
H
I
Aceh
5,674,800
3,882,300 68.4%
5,628,730 3,112,370 55.3% 2,304,470
74.0%
N. Sumatra
7,250,100
2,812,000 38.8%
7,137,480 1,984,060 27.8%
962,730
48.5%
W. Sumatra
4,169,000
2,590,400 62.1%
4,178,830 1,861,320 44.5% 1,165,330
62.6%
Riau
9,859,700
5,936,500 60.2%
9,696,430 4,013,330 41.4%
579,410
14.4%
Jambi
4,873,900
2,765,800 56.7%
4,813,720 1,379,560 28.7%
539,930
39.1%
S. Sumatra
10,226,300
3,562,100 34.8%
8,652,970 1,055,470 12.2%
577,730
54.7%
Bengkulu
2,090,400
1,126,600 53.9%
2,013,800
785,890 39.0%
573,39073.0%
Lampung
3,386,700
647,800 19.1%
3,345,470
209,590
6.3%
185,070
88.3%
SUMATRA
47,530,900 23,323,500 49.1% 45,467,430 14,401,590 31.7% 6,888,060
47.8%
INDONESIA 190,905,100 119,700,500 62.7% 187,913,000 93,924,330 50.0% 36,466,750
38.8%
Data source:
1. Regional Physical Planning Programme for Transmigration (RePPProT) (1990) The Land Resources of Indonesia: A National
Overview. Jakarta, Indonesia. Land Resources Department of the Overseas Development Administration, Government of UK,
and Ministry of Transmigration, Government of Indonesia., quoted by World Bank (February 2001) Indonesia Environment and Natural Resource
Management in a Time of Transition.
2. The Ministry of Forestry Republic of Indonesia (September 2005) Forestry Statistics of Indonesia 2004.
http://www.dephut.go.id/content.php?id=162&lev=1&optlang=en

Table 1.-- Forest Cover Change in Sumatra Provinces and Indonesia between mid 1980's and 2002-2003.
APP’s influence on natural forests in Riau is enormous. Rough estimates show that APP was responsible for29% (about 825,000 hectares) 20 of total natural forest loss in Riau between 1988 and 2005 (Figure 1).. So
desperate has the company been for wood that even protected forests have not been safe. In Riau, WWF’s
recent investigations confirmed that APP is definitely associated with 38 concession blocks and very likely
associated with seven more. Some of the 45 concessions overlap with Protected Areas (Kawasan Lindung)
designated in Riau’s 1994 Provincial Land Use Plan (RTRWP 1994). 37,349 hectares of protected naturalforests were destroyed in these areas between 1996 and 2005, despite their legal protection (see also FACT
11 and Map 5).
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APP’s impact on Riau will continue until it can source all it’s raw materials from plantations. APP say theytarget close to 100% sustainable plantation fiber supply by end of 2007, or at a minimum APP would abideby the Indonesian Government’s Acceleration of Plantation Development Program that states 2009 as thetarget for the entire Indonesian pulp and paper industry 21 . However, WWF sees little evidence that APP can
implement these commitments. APP began pulp production in March 1984 22 in Riau, but only beganplantation development around 1990. The company’s plantation management has been very poor since then,and WWF sees very little hope for improvement. WWF fears that APP will continue sourcing from naturalforests until there is no more natural wood to be had. Even on the most optimistic assumptions 23 , WWFestimates that APP would need to clear an additional half a million hectares 24 of natural forest in Riau until it
could fully rely on plantation fiber. APP would thus pulp 18% of the 2.7 million hectares of forest left in
Riau in 2005 25 . However, these very conservative assumptions disregard APP’s poor past record in meetingits plantation targets. Any increase of pulp production capacity, any further collapse of plantations will
require the conversion of even more forests.
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25% of the 2005 forests areprotected by the national
government as"Conservation Forests“(647,523 ha)
57% of the 2005 forests are“ready” to be cleared by any actor
incl. APP and APRIL(1,595,675 ha)

25%

29%

57%
71%
18%

At least 18% of the 2005
forests are projected to becleared by APP(500,000 ha)
Forest cover in 2005
was 2,743,198 hectares(49% of 1988 cover)Riau's Forest Cover in 1988
5,623,601 hectares (100%)29% of forest loss
between1988 and 2005 wasestimated to be caused by
APP (825,000 ha)
71% of forest loss
between1988 and 2005 was causedby other actors incl.
APRIL (2,055,403 ha)

Forest loss between
1988 and 2005
was 2,880,403 hectares(51% of 1988 cover)Figure 1.-- Forest loss caused by APP in Riau. (Forest Cover 1988: Indonesian Ministry of Forestry, Forest
Cover 2005: WWF interpretation of Landsat images).
APP’s newspaper advertisement in the New York and London Times:

FACT 3: APP has been converting “valuable forests” rather than the “least valuable forests andwastelands” it states the Indonesian Government allows companies to convert into plantations.
As APP states, the Indonesian Government policy allows the establishment of timber plantations only on
barren land, grasslands, bush, degraded forest or “least valuable forests and wastelands”. Companies arerequested to micro-delineate and maintain healthy productive forests and forests with conservation values
before establishing timber plantations. However, inspections of APP’s operations on the ground andinterpretation of satellite images clearly show that this has not occurred. Two concessions associated with
APP in the Giam Siak Kecil (GSK) block in northern Riau are a clear example. In 1995 (Figure 2), thoughsome logging roads and drainage canals are visible, the two would-be timber plantation concessions
associated with APP (blue boundary) were fully covered by natural forests of the same quality as the Bukit
Batu Wildlife Sanctuary (green boundary) that lies between them.

5Figure 2.-- Landsat image on 19 June 1995 of the Giam Siak Kecil forest block.

On 22 July 1999, the Ministry of Forestry issued principal licenses for these two concessions iv . (A principal
license does not allow a company to clearcut forest immediately). However, Landsat images of 2000 (Figure3) and 2002 (Figure 4) show large clearcuts (pink areas) in both concessions. This clearcutting can be
categorized as illegal, under the conditions of a principal license.
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Figure 3.-- Landsat image on 21 May 2000 of the Giam Siak Kecil forest block.
iv 804/Menhutbun-VI/1999 and 805/Menhutbun-VI/1999
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Figure 4.-- Landsat image on 14 July 2002 of the Giam Siak Kecil forest block.

It wasn’t until 30 October 2003, that the Ministry of Forestry gave definitive licenses (365 and366/Kpts-II/2003) thus allowing the company to clearcut some of these forests. By 2004, almost all thenatural forests in the two concessions had already been clearcut and some of them already planted withacacia, leaving only 3,564 hectares (12% of the concession area) and 4,385 hectares (21%) of natural forestsin the PT Bukit Batu Hutani Alam and the PT Sakato Pratama Makmur concessions, respectively (Figure 5).
APP was thus responsible for the illegal destruction, which occurred before 30 October 2003, of highly
sensitive peatland forest with potentially high conservation values.

Figure 5.-- Landsat image on 19 July 2004 of the Giam Siak Kecil forest block.

7

APP’s failure in “legal compliance” destroys natural forests
APP’s newspaper advertisement in the New York and London Times:

FACT 4: Professional HCVF assessments based on the HCVF Toolkit for Indonesia may delineate
anywhere between 0 and 100% of a given forest area as HCVF. APP’s reliance on the “at least 30% of
the pulpwood land (gross concession area) to be set aside” rule is not enough to ensure the protectionof HCVFs within their associated concessions v . Further, Landsat images of many concessions
associated with APP show much less than 30% natural forest cover in 2005: proof that APP has failed
in “legal compliance” to set aside areas and has therefore illegally cleared forest in these concessions.
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The forty-five concessions definitely and likely associated with APP today cover 878,109 hectares. In 2005,
348,693 hectares of natural forests remained. (Appendix 1 lists all of these concessions and the last column
shows what percentage of each concession was covered by natural forest in 2005.) All of the 23 concessions,
except one, in which APP had finished all or most of its forest clearing operations, had less than 23% of theconcession area covered by natural forests (highlighted in yellow in Appendix 1). Sixteen of them had only
less than 10% forest cover. Even some of the concessions in the four Forest Management Units (FMUs) for
which APP had accepted independent HCVF assessments based on the HCVF Toolkit for Indonesia had lessthan 30% forest remaining (green boundary in Map 1 and highlighted in green in Appendix 1). This is not
because less than 30% of the concession area had HCVFs, it is because by the time the assessments wereconducted, most of the natural forests in these FMUs had been clearcut. Only new concessions in which APP
had yet to begin or had only just begun logging operations still had a relatively high percentage of naturalforest coverage in 2005 (highlighted in red), however, WWF is highly concerned about the fate of these
forests.

Map 1.-- Concessions definitely or maybe associated with APP in Riau. New concessions in critical naturalforest areas are numbered. Green areas indicate 2005 natural forest cover, brown areas 1988 natural forest
cover.

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The process APP relies on in fact does not require all of the 30% gross concession area to be delineated as natural forests set asides,
but 5% is to be delineated as plantation development related infrastructures, such as roads.
PT8Map 1 shows the locations of the 45 concessions in Appendix 1. Many of the new concessions are located in
ecologically very critical areas. In some cases, WWF believes that an HCVF assessment based on the HCVF
Toolkit for Indonesia may recommend near total protection of all natural forests inside them: twoconcessions in the Senepis forest block are part of a large and deep peatland forest ecosystem and important
habitat for Sumatran tigers (see FACT 7), two concessions in the Libo forest block are important habitat for
Sumatran elephants (see reports collected on WWF Indonesia’s website 26 ), two concessions in the Kampar
forest block are part of a large and deep peatland forest ecosystem and important habitat for Sumatran tigers,
two concessions in the Kerumutan forest block are part of a large and deep peatland forest ecosystem.
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APP’s newspaper advertisement in the New York and London Times:

FACT 5: APP’s statements that forest designated for conversion is “subjected to a number of rigorous
biodiversity assessments” and that “APP conducts a [prior] high-conservation-value assessment” areinaccurate. Apart from the HCVF assessments based on the HCVF Toolkit for Indonesia conducted byWWF’s consultants and Rainforest Alliance’s SmartWood Program in four of its many Forest
Management Units in Riau between 2003 and 2005, WWF is not aware of APP conducting any
professional, transparent, independent assessments that follow accepted conservation toolkits.
The HCVF Toolkit for Indonesia assesses forests against the following values - biodiversity, habitat for key
endangered species, environmental services for downstream cities and villages, and cultural and economic
importance for local communities. The HCVF assessments need to be conducted by well trained andqualified multidisciplinary teams in a transparent manner through stakeholder consultations. Such HCVF
assessments have been completed in only four Forest Management Units associated with APP by WWF
consultants (Jarvie et al. 2003) 27 and SmartWood 28 . They confirmed the presence of around 120,000 hectaresof HCVFs. APP pledged to protect them, and even commissioned SmartWood to conduct regular audits tomonitor the company’s performance in managing these HCVFs 29 . However, SmartWood’s first audit showedthat the company had failed to effectively manage and protect the identified HCVFs (audit reports areavailable from SmartWood upon request) (see also FACTS 6 and 8).
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Under Indonesia’s laws and regulations, delineation of natural forests for protection within concessions isbased on a three-step process: an AMDAL assessment (Environmental Impact Assessment), a macrodelineation, and a micro delineation. However, these assessments and delineations are seldom effective inensuring the protection of High Conservation Values, because they are not conducted in an independent,
scientific, transparent or auditable manner. The ongoing devastation of Indonesia’s forests is a direct outcomeof the feeble efforts of concession companies, including APP, to respect and seriously implement thesesteps. .
APP’s refusal to protect HCVFs as identified by the HCVF Toolkit for Indonesia means that the around
230,000 hectares of natural forests standing in known APP concessions in 2005 may be destroyed to supply
APP’s pulp mill, without any independent, scientific and transparent assessment of High Conservation
Values and without any measures being taken to protect them. In addition, many more potential HCVFs will
be destroyed outside APP’s Timber Plantation Concessions as the company continues to source from third
parties who operate beyond any control. APP’s pulp mill depends on such deliveries as it is running out ofwood due in no small part to the company’s very poor plantation management.

APP has not protected what it committed to protect
APP’s newspaper advertisement in the New York and London Times:

9

FACT 6: According to APP’s auditor, SmartWood, APP is failing to protect the HCVFs that is has
committed to conserve.
In 2005, APP contracted an FSC-accredited certifier, the Rainforest Alliance’s SmartWood Programme, tomonitor the management of HCVFs that APP had pledged to protect for five years 30 . Public Summary
Verification Reports by SmartWood, available upon request, on the first round of monitoring of APP’s
management of the four identified HCVF blocks concluded that on average 9% of the originally identified
HCVFs were lost (Table 2). In total 7,802 hectares of lost HCVF was directly attributable to APP, 2119
hectares indirectly attributable to APP (i.e. negative effects of declining humidity and increased light, wind
and temperature extremes at the long forest edges in HCVF areas or at canals through HCVF areas, forest
death resulting from poor hydrological practices, etc.) and 1074 hectares by other parties or factors (i.e.
illegal logging, conversion to agriculture or forest and land fires which the company failed to control).
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In the case of HCVF in the Giam Siak Kecil (GSK) area, APP excluded around 5,000 hectares of the original
HCVF area that it had originally committed to protect, even though these forests were delineated as
Protected Areas in the Riau Provincial Land Use Plan 1994 (see also FACTS 8, 9 and 11). WWF
recommends that interested stakeholders request copies of the full audit reports from SmartWood to verify
what is actually written in them, rather than rely on APP’s interpretation of the report.

Giam Siak Kecil Pulau Muda Serapung
HCVF originally identified

70,460Assessor

Jarvie et al.

Report date
Loss of the original HCVFs directly
attributable to APP/Sinar Mas Forestry(includes "Company subtracted HCVF
forest")Loss of the original HCVFs indirectly
attributable to APP/Sinar Mas Forestry
Loss of the original HCVFs by other parties
or factors
Company added "HCVF"
October 2005 HCVF Balance

33,530

Siak

7,144

Total
6,872 118,006

SmartWood SmartWood SmartWood

Nov-03Aug-04

Nov-04

Jul-05-7,802

-734

0

-64.5

-7,802-956-124.5-1,038.4 Not measured-2,119

0

-418

-418

-237.5-1,074

1,826

173.64

0

0

2,000

63,52832,427

5,687

6,570 108,212

Loss %

12.4%
3.8%
20.4%
Table 2.--Summary of key data from the SmartWood first verification audit reports 31 .
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9.3%

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APP clearcuts Sumatran Tiger habitat
APP’s newspaper advertisement in the New York and London Times:

FACT 7: 86% of the “100,000 hectare-plus reserve” for tiger conservation that APP proudly advertises
is actually inside an unrelated company’s Selective Logging concession, which has been certified by the10Forest Stewardship Council (FSC) and the Indonesian Ecolabeling Institute (LEI). For this reserve,
APP itself offered to provide only 15,597 hectares of natural tiger forests in two of its associatedconcessions located to the south of the FSC concession. APP fails to say, however, that APP andassociated concession holders are set to clearcut up to 48,818 hectares of natural tiger forest insidethese two concessions for their pulp production. This includes 31,615 hectares that in 2004 had been
proposed as Senepis national park for Sumatran Tiger conservation and 22,245 hectares of natural
tiger forest delineated as Protected Area (Kawasan Lindung) in the currently active Riau Land Use
Plan 1994 (RTRWP 1994).
Senepis forest block in the north-western tip of Riau is important habitat for Sumatran tigers. Fortunately forthe tigers, most of this forest block is inside the Selective Logging Concession of PT Diamond Raya Timber,certified by both Forest Stewardship Council (FSC) and Indonesian Ecolabeling Institute (LEI) (Map 2, redboundary). The remaining tiger forest to the south is licensed to four Timber Plantation concessions, which
will be cleared and not selectively logged. At least three of them are confirmed to be associated with APP:
one concession of PT Suntara Gajapati and two concessions of Ruas Utama Jaya (Map 2, blue boundary,indicated by blue arrows). These three concessions together contained 68,067 hectares of natural forests in2005 (light green shaded area), 42,356 hectares of which were inside the PT Suntara Gajapati concession.
Recognizing the importance of these forests for tigers, a tiger conservation area of 60,000 hectares including
the whole PT Suntara Gajapati concession had been proposed many times by the Forestry and Plantation
Agency, the Mayor of Dumai, the Riau BKSDA vi and the Parliament of Dumai 32 . On 23 August 2004, theRiau Forestry Agency suggested that the Ministry of Forestry change the land use function of 57,472 hectareof still largely forested area from Permanent Production Forest status to a National Park 33 (Map 2, thickgreen boundary). The area included all of PT Suntara Gajapati (46,908 hectares, blue boundary) and a small
area of PT Diamond Raya Timber concession. This proposal was supported by Riau’s Governor on 18
October 2004 34 . On July 11, 2005, the Indonesian Ministry of Forestry’s Director of Protected Areas stated in
front of local and national government officials, NGOs and corporations that the Ministry would try to
revoke the concession license of PT Suntara Gajapati to ensure the establishment of Senepis-Buluhala
National Park.
TPF

FPT

TPD

DPT

TPD

TPD

DPT

DPT

However, APP and PT Suntara Gajapati disagreed with this proposal. On January 2006, the Minister ofForestry issued two letters, suddenly giving principal approval for a new idea: the establishment of a Sumatra
Tiger Conservation Area (not a National Park), of 106,086 hectares (Map 2, pink boundary) 35 . On 22 June
2006, PT Suntara Gajapati/APP submitted yet another proposal for a Conservation Area of 106,081 hectareswith some boundary modifications to the original proposal by the Ministry of Forestry (Map 2, yellow dottedboundary). On first impressions, the fact that the new Tiger Conservation Area is around 40,000 ha larger
than the originally proposed Tiger National Park, might sound like good news. However, a deeper
examination shows that Sumatran tiger is likely to be worse off :• 86% of this new Tiger Conservation Area lies within the PT Diamond Raya Timber’s Selective
Logging concession (88,187 hectares) whose natural forests are not designated for clearcutting.
Therefore there is no gain for tigers, a LEI and FSC managed Selective Logging concession isalready something like a “Tiger Conservation Area”.
• Only 14% lies within APP associated PT Suntara Gajapati and PT Ruas Utama Jaya concessions
which would protect 10,741 hectares and 4,856 hectares of natural forest respectively, much lessthan the originally proposed national park which was supposed to protect all forest in the PT
Suntara Gajapati concession (46,908 hectares) and much less than “at least 30% of highconservation value forests” to be set aside in each concession (22.9% and 18,5% respectively)
which APP mentions in their newspaper advertisement (FACT 4). APP thus “managed to prevent”
around 31,615 hectares of 2005 natural tiger forest cover in the PT Suntara Gajapati concession
from being declared a national park and will clear this forest apparently without concern for thetigers that live there. A clear loss for tigers.
• The new boundary proposed by APP would also allow the conversion of 11,129 hectares and11,116 hectares, respectively of Protected Area (Kawasan Lindung) that the currently active Riau
Land Use Plan (RTRWP 1994) had set aside for protection (Map 2, black outline) inside theconcessions of PT Suntara Gajapati and PT Ruas Utama Jaya. According to existing regulation,
natural forests inside Kawasan Lindung should not be converted.
TPD

TP

vi
PT

Conservation Authority in the Riau Province
11

DPT

•

The new Tiger Conservation Area boundary proposed by APP was ratified in an agreement signed
on 21 June 2006 by Sinar Mas Forestry (APP), APP’s joint venture partners, PT Suntara Gajapati
and PT Ruas Utama Jaya and two NGOs, Sumatran Tiger Conservation Program vii . For unknown
reasons, the most important stakeholder in this new APP-driven proposal, PT Diamond Raya
Timber, was not included in the agreement despite the fact that they are supposed to provide mostof the land for the new conservation area. In an interview on 11 August 2006, PT Diamond Raya
Timber management staff told WWF that they did not know that there was a discussion between
these parties to sign the agreement. Diamond Raya Timber staff said that in principle, they do not
object to the proposal to have their selective logging concession as the core area of Sumatran Tiger
Conservation Area. However, they are concerned that this new proposal protects only a small
fraction of the natural forests in the concessions of PT Suntara Gajapati and PT Ruas Utama Jaya,
and in practice allows the rest of the remaining natural forests to be clearcut, thus pushing more
tigers into their Selective Logging Concession on the north and increase the likelihood of
human-tiger encounters and conflicts in the now much smaller habitat.
TPF

FPT

Figure 6.--Loss of habitat in Riau has resulted in the death and capture of tigers who come into closer contact
and thus potential conflicts with people and their livestock. A tiger was found dead with snares on its foot inside
APP’s Pulau Muda concession on May 9, 2006 (left, WWF-Indonesia/ Tesso Nilo Program) and an injured tiger
was captured after a conflict with villagers in Pulau Burung Village, Indragiri Hilir District in May 2005 (right,
WWF-Indonesia/Tesso Nilo Program).

vii
The program is a collaboration between the Indonesian Department of Forestry, the Sumatran Tiger Trust in the UK and The Tiger
Foundation in Canada.
TP

PT

12

Map 2.--Various proposals for a Sumatra Tiger protected area in Senepis forest block. Senepis-Buluhala
Sumatra Tiger National Park proposed by Riau Forestry Service (green boundary), Conservation Area
proposed by the Ministry of Forestry (pink boundary) and by APP, associated concessions and two NGOs
(yellow dotted line) and concessions of PT Diamond Raya Timber (red boundary on the north), PT Suntara
Gajapati and PT Ruas Utama Jaya (RUJ) (blue boundary).

13

APP continues to threaten peatland forest ecosystems in Riau
APP’s newspaper advertisement in the New York and London Times:

FACT 8: After making global public promises for the protection of peat swamps in Riau in 2004, APP
did not move forward with “plans to establish the Riau Biosphere Reserve” and left Giam Siak Kecil’s
peat swamp forests to degrade without any conservation management or protection.
In 2003, a study commissioned by WWF based on the HCVF Toolkit for Indonesia, identified approximately
70,000 hectares of HCVFs inside APP’s Forest Management Unit in the Giam Siak Kecil forest block – alarge peatland ecosystem 36 . The study recommended connecting the identified HCVFs with two existing
protected areas, Giam Siak Kecil (50,000 ha) and Bukit Batu Wildlife Sanctuaries (21,250 ha) to form one
large conservation area. In 2004, APP publicly accepted that challenge and committed to protect and manage
the area. However, for the next two years APP did nothing substantial to protect this area. The verification
audit report by SmartWood (28 April 2006) 37 states: “To date, the actions taken by the company to manage
and conserve HCVF in the concession have been limited to implementation of a no-cut policy…Essentiallyno stakeholder consultation with local communities has been undertaken to raise awareness about thecompany’s HCVF management objectives or to explore collaborative management with local
communities…There is no approved conservation action plan that provides a long term framework forplanning and implementing conservation actions to maintain or enhance the values currently present in
HCVF areas.”
TPD

DPT

TPD

DPT

SmartWood’s audit report 38 also concludes that 12% of the original HCVF identified by the study had been
lost by October 2005, including 7,800 hectares of HCVF loss directly attributed to clearing by APP and a 956
hectares loss indirectly attributed to APP operations. SmartWood also states that forest depletion ordegradation in HCVF areas is increasing and attributed this to expanded illegal logging throughout many
forests within the HCVF areas, in most cases facilitated by the extensive network of canals dug by APP. In
SmartWood’s opinion, the company’s approach of only reporting illegal logging but not taking any otheractions “does not fulfill company obligations and SmartWood believes it should commit sufficient financial
and human resources necessary to reduce the intensity and scale of HCVF depletion caused by illegal
logging.”
TPD

DPT

FACT 9: Giam Siak Kecil is not the only peat swamp forest ecosystem endangered by APP operations.
APP has eight concessions covering large areas of natural forest in four additional peatlands: Senepis,
Kampar, Kerumutan and Libo peat swamp forest blocks. A total of 171,555 hectares of natural forests
remained in these concessions in 2005, mostly on top of deep peat soil (see red numbered blocks in Map 3
and red highlighted cells in Appendices 1 and 2). These peatland forest ecosystems are as important as theGiam Siak Kecil area APP so proudly advertises. However, APP refuses to protect these forests.
• APP is ready to clear around 49,000 hectares of natural tiger forests in Senepis (see FACT 7).
• APP is getting ready to clear two concessions on the top of the peat dome in Kampar that both Riau’slocal NGO network Jikalahari and WWF have proposed as national park.
• APP has been developing concessions in the Libo block that include forests urgently needed by
Sumatran Elephants (see reports collected at WWF Indonesia’s website 39 ), and• APP has been clearing its concessions in the Kerumutan peat forest block.
TPD

14

DPT

Map 3.-- Timber Plantation Concessions belonging to or associated with APP and forest cover 2005 coloredbased on different depth of peat soil. Brown areas used to be covered by natural forests in 1988.
While the dramatic negative effect of APP’s operations on Riau’s forests, tigers and elephants have been
amply documented, concern about APP’s impact on global warming is rapidly growing. APP is driving up
carbon emissions from Riau’s peatland areas through the destruction of their natural forests, their drainage,
peat soil subsidence, and frequent forest and land fires. Carbon emissions from the destruction of Indonesia’s
peatlands are already higher than the country’s emissions from fossil fuels. APP is thus a major contributor to
the global catastrophe that is global warming. Development of plantation on peatlands is also legally
problematic. The government of Indonesia prohibits the clearing of forest above peat with depths of morethan three meters viii . As shown by Map 3 and Appendix 3, 73% of 2005’s natural forest cover in all APP
associated concessions in Riau was on peat deeper than 4 meters (dark green area in Map 3) and therefore
should be protected.
TPF

FPT

Clearance of natural forests on peatlands in Riau involves another legal problem. Peatland forests are good
habitat for Ramin trees (Gonystylus spp.), which is under Indonesia’s decreed moratorium on logging andtrade 40 . The FSC/LEI certified logging company, PT Diamond Raya Timber mentioned in FACT 7, is the
only company for whom the CITES Management Authority of Indonesia issue export permits for timber andproducts from ramin from Indonesia 41 . A botanical survey in August 2006 showed that Ramin trees occur
inside APP associated concessions in Senepis and Kampar forest blocks, with an average of 10-17 trees per
hectare 42 . APP’s clearance of natural forests in these concessions which involves cutting of ramin trees islegally problematic as it is in breach of Indonesia’s decreed moratorium on ramin logging and trade. Anotherbotanical study that was conducted by Forestry Faculty of Lancang Kuning in PT Diamond Raya Timber’s
concession in Senepis found that the density of ramin in virgin forest and logged over forest to be 16 trees
per hectare and 8.5 trees/hectare, respectively 43 . Comparing the ramin densities found by the two studies, it
can be concluded that the forests in the APP associated concessions in Senepis and Kampar are as healthy
and productive as the FSC/LEI certified PT Diamond Raya Timber’s Selective Logging concession, and
TPD

DPT

TPD

TPD

DPT

DPT

TPD

TP

viii
PT

DPT

Presidential Decree No 32/1990, Ministry of Forestry Decree No. SK.101/Menhut-II/2004.
15

therefore should not be clearcut. In addition, three endangered species according to the IUCN Red List of
Threatened Species 44 , Shorea teysmanniana (EN A1cd), Anisoptera marginata (EN A1cd+2cd) and Vatica
pauciflora (EN A1c) were observed in the sample plots and they should not be logged.
HT

THPD

DPT

APP has been unable to protect their concessions from forest and land fires
APP’s newspaper advertisement in the New York and London Times:

FACT 10: 16.1%, 8.7%, 15.3%, 19.3% and 11.0% of all of Riau’s fires in 2002, 2003, 2004, 2005 andbetween 1 January and 25 August 2006 burnt in Timber Plantation Concessions owned and associatedwith APP. APP has not been complying with its legal obligation to suppress fires on land under its
control.
Based on the Forest Fire Prevention Management Project 2 (a joint project by the Indonesian Ministry ofForestry and JICA) 45 and MODIS Web Fire Mapper 46 many of the APP associated concessions hadrecurring fire hotspots since 2002 (Appendix 2). Map 4 shows the locations of the hotspots detected between
1 January and 25 August 2006 in Riau. The drama of the burning fires and their direct correlation withclearing of peatlands for plantations prompted WWF, Walhi, Greenpeace Southeast Asia and Jikalahari on 7
August 2006, to jointly call on Government to stop granting concessions for conversion and land clearing on
peatlands 47 .
HT

TH

TPD

TPD

DPT

HT

THPD

DPT

DPT

APP’s “chain-of-custody” system does not ensure legality
FACT 11: APP states it has put a “chain-of-custody” system in place. APP states that it goes “beyond
legal compliance”. However, investigations suggest that APP’s own forestry operations are not even“in” legal compliance.
APP is continuing to rely on wood from concessions with legally questionable District licenses 48 ; on wooddeliveries from the clearing of natural forests that occur on peat with more than 3 meters depth or habitat for
CITES protected ramin (see FACT 8 and Map 3), as well as clearing of other natural forests that areprohibited from conversion by Government regulations, such as forests which have been designated as
Protected Areas (Kawasan Lindung) according to the Provincial Land Use Plan 1994 (RTRWP 1994) (Map5). The “chain-of-custody” system APP employs is blind to these violations, therefore APP customers should
not see it as “legality certificate”.
TPD

16

DPT

Map 4.-- Hotspots between 1 January and 25 August 2006 in relation to APP associated concessions.

Map 5.--Timber Plantation Concessions belonging to or associated with APP in relation to Kawasan
Lindung (provincially Protected Area) according to the Riau Land Use Plan (RTRWP 1994).

17

CONCLUSION
APP’s newspaper advertisement in the New York and London Times:

WWF’s Conclusion: The facts detailed above clearly show that while APP may state a belief “that theprotection of endangered species and the conservation of diversity are key tenets of responsible forest
management”, its actions speak louder than words. APP does not implement “responsible forest
management”. APP does not respect its “obligation to be good stewards of the forest and all that dwell init”. APP’s future “sustainable forest management program” clearly depends on today’s destruction ofnatural forests, including HCVFs as identified by the HCVF Toolkit for Indonesia.
Paper buying companies throughout the world can contribute to the conservation of forests in Riau andbeyond. They can review their supply chains to ensure they do not include producers who source any of theirfiber illegally or by clearing forests likely to contain high conservation values. Where there is a risk ofdealing with a producer whose products may contain timber from such "unwanted sources", buyers canrequest their supplier to verify that all of their fiber is from environmentally and socially responsible sources.
If suppliers do not provide such assurances, or if such assurances cannot be verified, buyers can direct theirbusiness elsewhere. However, if individual suppliers are responsive, e.g. by committing to not clear HCVF
throughout their corporate operations, buyers can reward their efforts by offering "preferred supplier" status.
Any company buying products from APP today is contributing to the devastating loss of the last naturalforests not only in Riau but in other provinces where APP operates, pushing the wildlife that the forests
support ever closer to extinction.

Figure 8. --Wood piles in the log yard and pulp mill of APP in Riau Province, Sumatra, Indonesia. (WWFIndonesia). How much more natural forest should be pulped by this mill?

18

Appendix 1. List of Concessions confirmed to be associated or likely associated with APP in Riau and forest
cover in 1988 and 2005. Concessions where all or most of natural forest clearance operations ceased before
2005 are highlighted in yellow, concessions in which APP says it is protecting FSC HCVF under SmartWood
supervision are highlighted in green. Concessions in which development has just or has not yet started arehighlighted in red.

Concession Holder

Association

PT. ARARA ABADI - Beringin
APP
PT. ARARA ABADI - Beringin
APP
PT. ARARA ABADI - DuriAPP
PT. ARARA ABADI - DuriAPP
PT. ARARA ABADI - Minas
APP
PT. ARARA ABADI - Minas
APP
PT. ARARA ABADI - Minas
APP
PT. ARARA ABADI - Minas
APP
PT. ARARA ABADI - Minas
APP
PT. ARARA ABADI - Nilo
APP
PT. ARARA ABADI - Pelalawan
APP
PT. ARARA ABADI - Pelalawan
APP
PT. ARARA ABADI - Pelalawan
APP
PT. ARARA ABADI - Sedinginan
APP
PT. ARARA ABADI - Sedinginan
APP
PT. PERAWANG SUKSES PERKASA INDUSTRIAPP
PT. PERAWANG SUKSES PERKASA INDUSTRIAPP
PT. PERAWANG SUKSES PERKASA INDUSTRIAPP
PT. RIAU ABADI LESTARI
APP
PT. RIAU ABADI LESTARI
APP
PT. RIAU ABADI LESTARI
APP
PT. RUAS UTAMA JAYAAPP
PT. SATRIA PERKASA AGUNG
APP
PT. ARARA ABADI - Pulau Muda
APP
PT. ARARA ABADI - Siak
APP
PT. BUKIT BATU HUTANI ALAMAPP
PT. DEXTER TIMBER PERKASA INDONESIA & KTH WANAJAYA
APPPT. MITRA HUTANI JAYAAPP
PT. SAKATO PRATAMA MAKMUR
APP
PT. SAKATO PRATAMA MAKMUR
APP
PT. SATRIA PERKASA AGUNG
APP
PT. SATRIA PERKASA AGUNG - Pulau Muda
APP
PT. SATRIA PERKASA AGUNG - Serapung
APP
PT. SATRIA PERKASA AGUNG & KTH. SINAR MERAWANG - Pulau Muda
APP
PT. BALAI KAYANG MANDIRI
APP
PT. BINA DUTA LAKSANA
APP
PT. RUAS UTAMA JAYAAPP
PT. SUNTARA GAJA PATI
APP
PT. MUTIARA SABUK KHATULISTIWA
Maybe APP
Not Known
Maybe APP
PT. BALAI KAYANG MANDIRI
Maybe APP
PT. BALAI KAYANG MANDIRI
Maybe APP
PT. PUTRA RIAU PERKASAMaybe APP
PT. RIMBA MANDAU LESTARI
Maybe APP
PT. RIMBA ROKAN PERKASAMaybe APP
APP total
Maybe APP total
APP + Maybe APP TOTAL

19%
ForestConcession
Concession
ForestCover 1988 Cover 2005
Area
Area
(ha)
(ha)
Covered by(ha)Forest 2005
16,6249,543
59,60590,844
4,355
14,8119
1,205
266
26,17823,52428,993
848
7,569
4,903
22,82624,540
6,848
4,472
5,703
4,858
18,4109,356
28,21845,43130,22130,832
7,492
24,192
21,23824,63640,608
11,404
9,860
8,686
31,264
26,20046,90844,866
3,135
6,609
6,172
16,462
4,777
22,610773,479
104,630
878,10915,875
9,485
52,05571,815
4,355
14,8119
1,205
266
25,320
417
8,578
53
5,156
4,006
21,43323,177
3,365
3,008
5,703
4,118
17,3449,356
27,04045,431
28,41030,832
6,834
24,192
20,725
24,63640,608
11,2709,860
8,571
28,52725,913
46,82544,740
2,908
6,609
6,172
16,462
4,774
22,610680,585
104,275
784,860

2,966
681
3,792
7,065
2,127
3,383
475
2,278
35
691
362
808
5,701
958
338
84
3,652
2,850
8,024
9,438
3,564
30,365823
13,0094,385
24,63615,129
5,678
9,365
8,288
24,35922,05942,356
40,629
2,613
2,326
6,172
16,412
3,576
17,243259,723
88,970348,693

18%
7%
6%
8%
0%
14%
0%
0%
0%
13%
2%
8%
4%
9%
7%
4%
23%
14%
8%
1%
0%
20%
30%
28%
21%
12%
98%
11%
54%
21%
100%
37%
50%
95%
95%
78%
84%
90%
91%
83%
35%
100%
100%
75%
76%
34%
85%
40%

Appendix 2.-- List of Concessions confirmed to be associated or maybe associated with APP in Riau andforest cover 2005, percentage of these forests on peat soil of more than 4 meters of between 2 and 4 meters,
forest and land fire hotspots identified since 2002 in each concession. (Hotspots data source: Forest Fire
Prevention Management Project 2 49 for January to July 2004 and MODIS Web Fire Mapper 50 since August
2004. Concessions highlighted in red in general have very high percentage of forest cover on deep peat.
HT

THPD

DPT

HT

THPD

Peat Forest 2005 (ha)Forest Cover2005 (ha)Concession Holder

PT. ARARA ABADI - Beringin
PT. ARARA ABADI - Beringin
PT. ARARA ABADI - Duri
PT. ARARA ABADI - Duri
PT. ARARA ABADI - Minas
PT. ARARA ABADI - Minas
PT. ARARA ABADI - Minas
PT. ARARA ABADI - Minas
PT. ARARA ABADI - Minas
PT. ARARA ABADI - Nilo
PT. ARARA ABADI - Pelalawan
PT. ARARA ABADI - Pelalawan
PT. ARARA ABADI - Pelalawan
PT. ARARA ABADI - Sedinginan
PT. ARARA ABADI - Sedinginan
PT. PERAWANG SUKSES PERKASA INDUSTRI
PT. PERAWANG SUKSES PERKASA INDUSTRI
PT. PERAWANG SUKSES PERKASA INDUSTRIPT. RIAU ABADI LESTARI
PT. RIAU ABADI LESTARI
PT. RIAU ABADI LESTARI
PT. RUAS UTAMA JAYA
PT. SATRIA PERKASA AGUNG
PT. ARARA ABADI - Pulau Muda
PT. ARARA ABADI - Siak
PT. BUKIT BATU HUTANI ALAM
PT. DEXTER TIMBER PERKASA INDONESIA & KTH WANAJAYA
PT. MITRA HUTANI JAYA
PT. SAKATO PRATAMA MAKMUR
PT. SAKATO PRATAMA MAKMUR
PT. SATRIA PERKASA AGUNG
PT. SATRIA PERKASA AGUNG - Pulau Muda
PT. SATRIA PERKASA AGUNG - Serapung
PT. SATRIA PERKASA AGUNG & KTH. SINAR MERAWANG - Pulau Muda
PT. BALAI KAYANG MANDIRI
PT. BINA DUTA LAKSANA
PT. RUAS UTAMA JAYA
PT. SUNTARA GAJA PATI
PT. MUTIARA SABUK KHATULISTIWA
Not Known
PT. BALAI KAYANG MANDIRI
PT. BALAI KAYANG MANDIRI
PT. PUTRA RIAU PERKASA
PT. RIMBA MANDAU LESTARI
PT. RIMBA ROKAN PERKASAAPP total
Maybe APP total
APP + Maybe APP TOTAL
Riau Total
APP %

20

2,966
681
3,792
7,065
2,127
3,383
475
2,278
35
691
362
808
5,701
958
338
84
3,652
2,850
8,024
9,438
3,564
30,365823
13,0094,385
24,63615,129
5,678
9,365
8,288
24,35922,05942,356
40,629
2,613
2,326
6,172
16,412
3,576
17,243259,723
88,970348,6932,743,198
12.7%

on peatsoil > 4m

on peat
soil
2-4m

98%

2%

26%

13%
16%
0%

DPT

Forest and Land Fire Hotspots

2002

2003

103
18
120
278
2
10

2004

80
6
35
136
2
8

22
6
86
188

304
14
151
336

104

8

4
40%
20%

1%

1%

69%
95%
5%
28%
91%
100%
72%
95%
100%
100%
92%
80%
100%
83%
94%
60%
69%
100%

10%
4%
1%
2%
9%

2%
91%
100%
100%
73%
74%
73%

1%

2
6
10

2
3
3

4

3
8
3
7
2
4
8
5
112
26
13
142
575
11
5
9
90

2

17
13
57
4

2
3
27
1

20
11

34
26
4
5
1
19
37
1

2
2
15
54

4

84
58
22

2
61
1
1
1

169
74

3

1
3
22

90%

11

92%
2%
20%
7%

4
1,647
15
1,662
10,305
16.1%

63
1
115
86
2
7

19

5
5
26

1
1
3
3
4

4%

2006
1 Jan 25 Aug

2005

6
9

18
6
6
185
96
98
95
665

6
113
3
5
7
2
20
19
19
6
15

33
589
9

40

62
95
8

14
50

2

17
2
34
5
1

13
35
1

8
24

7

21

39

55

17
500
24
524
6,039
8.7%

46
1,029
68
1,097
7,189
15.3%

58
2,882
98
2,980
15,476
19.3%

261
659
316
975
8,840
11.0%

0%

References
1

Minister of Forestry Decree (No P.54/Menhut-11/2006) on the Establishment of Riau as Sumatran Elephant Conservation Centre,
issued in Jakarta on 19 July 2006. English translation of the Decree can be downloaded at
http://www.wwf.or.id/attachments/pdf/Minister of Forestry Decree P.No 54 2006 -english.pdf Read also WWF Indonesia Press
Release (26 September 2006) Continuing human elephant conflict in Riau, Sumatra: WWF Welcomes Minister of Forestry’s Decreeon the Establishment of Riau as Elephant Conservation Centre ”Proper implementation will help prevent future conflict”. Available
at: http://www.wwf.or.id/index.php?fuseaction=newsroom.detail&id=NWS1159252152&language=e2
Rainforest Alliance & ProForest (August 2003) Identifying, Managing, and Monitoring High Conservation Value Forests inIndonesia: A Toolkit for Forest Managers and other Stakeholders. Version 1. Prepared on behalf of the WWF and IKEA Co-operation
on Forest Projects. http://www.hcvf.org/practical-support/toolkits/hcvf-toolkit-for-indonesia-english.pdf/download3
http://www.wwf.or.id/attachments/pdf/EleventhHourRiau'sForests.pdf
4
WWF Indonesia Website http://www.wwf.or.id/index.php?fuseaction=news.detail&language=e&id=NWS1151055588
5
APP’s advertisement is posted at: http://www.asiapulppaper.com/app/content/EnvironmentNews.asp?MID=MN002#
6
Rainforest Alliance & ProForest (August 2003) Identifying, Managing, and Monitoring High Conservation Value Forests inIndonesia: A Toolkit for Forest Managers and other Stakeholders. Version 1. Prepared on behalf of the WWF and IKEA Co-operation
on Forest Projects. http://www.hcvf.org/practical-support/toolkits/hcvf-toolkit-for-indonesia-english.pdf/download
7
WWF Indonesia Press Release (11 July 2006) APP fails to protect High Conservation Value Forests.
http://www.wwf.or.id/index.php?fuseaction=press.detail&language=e&id=PRS1152588911
8
Forest Stewardship Council (FSC) website: http://www.fsc.org
9
FSC Principle 9: http://www.fsc.org/en/about/policy_standards/princ_criteria/11
10
FSC Principle 9: http://www.fsc.org/en/about/policy_standards/princ_criteria/11
11
Rainforest Alliance & ProForest (August 2003) Identifying, Managing, and Monitoring High Conservation Value Forests inIndonesia: A Toolkit for Forest Managers and other Stakeholders. Version 1. Prepared on behalf of the WWF and IKEA Co-operation
on Forest Projects. http://www.hcvf.org/practical-support/toolkits/hcvf-toolkit-for-indonesia-english.pdf/download
12 SmartWood (28 April 2006) Forest Management High Conservation Value Forest (HCVF) Public Summary Verification Report of:
Bukit Batu Forest Management Unit Sinar Mas Forestry/ Asia Pulp & Paper, Riau Province, Sumatra, Indonesia. SmartWood (15May 2006) Forest Management High Conservation Value Forest (HCVF) Public Summary Verification Report of: Pulau Muda Forest
Management Unit Sinar Mas Forestry/ Asia Pulp & Paper, Riau Province, Sumatra, Indonesia. SmartWood (6 April 2006) Forest
Management High Conservation Value Forest (HCVF) Public Summary Verification Report of: Serapung Forest Management Unit
Sinar Mas Forestry/ Asia Pulp & Paper, Riau Province, Sumatra, Indonesia. SmartWood (6 April 2006) Forest Management High
Conservation Value Forest (HCVF) Public Summary Verification Report of: Siak Forest Management Unit Sinar Mas Forestry/ Asia
Pulp & Paper, Riau Province, Sumatra, Indonesia.
13
The Ministry of Forestry Republic of Indonesia (September 2005) Forestry Statistics of Indonesia 2004. Available at:
http://www.dephut.go.id/content.php?id=162&lev=1&optlang=en. The data are shown in Table I.1.2. Extent of Land Cover Inside
and Outside Forest Area based on the Interpretation of Satellite Image Landsat 7 ETM+ Up to 2004 (based on Landsat Image of year
2002/2003), available at: http://www.dephut.go.id/INFORMASI/STATISTIK/2004/Baplan/I_1_2.pdf
14
Blouch and Simbolon Technical Report, 1985
15
KSDA Riau Technical Report, 200216
WWF and BKSDA Riau, 200417
See also Eyes on the Forest (4 April 2006) Interactive Map on Elephant Distribution and Conflict in Riau, Sumatra.
http://eyesontheforest.or.id/eofnew/ele_map_announcement.php
18
The Ministry of Forestry Republic of Indonesia (September 2005) Forestry Statistics of Indonesia 2004. Available at:
http://www.dephut.go.id/content.php?id=162&lev=1&optlang=en. The data are shown in Table I.1.2. Extent of Land Cover Inside
and Outside Forest Area based on the Interpretation of Satelite Image Landsat 7 ETM+ Up to 2004 available at:
http://www.dephut.go.id/INFORMASI/STATISTIK/2004/Baplan/I_1_2.pdf
19 http://www.panda.org/about_wwf/where_we_work/ecoregions/sumatran_lowland_forests.cfm
20
CIFOR estimated that between 1988 and 1999, APP was responsible for over 278,000 hectares of natural forest destruction in Riau
(Barr, C. 30 November 2000. Profits on Paper: The Political-Economy of Fiber, Finance, and Debt in Indonesia’s Pulp and Paper
Industries.). For the period of between 2000 and 2005, WWF assumed that APP on average produced 2 million tones of pulp per year
using 80% of the total wood supply by natural forest wood. Using forest to pulp conversion based on AMEC data, total natural forest
loss was calculated as follows: 2 million tons of total pulp production per year on average for 2000-2005 x 4.5 (wood to pulp ratio) x
1.13 (wood ton to m3 ratio) x 1.235 (adding 23.5% harvest & transport yield losses) / 110 (average timber standing volume perhectare of natural forest) x 80% (average share of MTH among the total wood supply for 2000-2005) = 548,071 hectares. Therefore,
APP’s contribution to the 1988 – 2005 forest loss could be estimated as 278,000 hectares + 548,071 hectares = 826,071 hectares
20
WWF Indonesia (June 2006) WWF Monitoring Brief June 2006: Asia Pulp & Paper (APP).
21
Ministry of Forestry, Republic of Indonesia Decree Number: SK.101/Menhut-II/2004 on Acceleration of Industrial Forest
Plantation Development to Supply Raw Material for the Pulp & Paper Industry.
http://www.dephut.go.id/INFORMASI/skep/skmenhut/101_04.htm
22
Asia Pulp & Paper Website, History & Overview.
http://www.asiapulppaper.com/app/content/OverviewHistory.asp?MID=MN001&MSubID=MN008
23 1. existing plantations would continue to supply 30% of the annual mill raw material requirement, 2. new plantations able tosupply 70% of the company’s annual mill raw material requirement could be established every year for seven years, and 3. noincrease in the Riau mill’s pulp production capacity.
24
Forest to pulp conversion based on AMEC data: 2 million tons of total pulp production x 4.5 (wood to pulp ratio) x 1.13 (wood ton
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to m3 ratio) x 70% (share of MTH among the total wood supply) x 1.235 (adding 23.5% harvest & transport yield losses) / 110(average timber standing volume per hectare of natural forest) x 7 years (plantation rotation) = 559,489 hectares.
25
WWF Indonesia (June 2006) WWF Monitoring Brief June 2006: Asia Pulp & Paper (APP).
http://www.wwf.or.id/attachments/pdf/Monitoring%20Brief%20on%20APP%20(WWF%20June%202006).pdf
26
WWF Indonesia website: Riau’s Elephants: The 2006 Tragedy http://www.wwf.or.id/tessonilo/Default.php?ID=926
27
Jarvie, J., Jeyeraj, K. and Hardiono, M. (Nov 2003) A High Conservation Value Forest Analysis of the Giam Siak Kecil Landscape– Riau, Sumatra. A report to WWF International.
http://eyesontheforest.or.id/index.php?option=com_docman&task=doc_download&gid=17&Itemid=2
28
Rainforest Alliance SmartWood Program (30 June 2005) High Conservation Value Forest (HCVF) Assessment Report for: Siak
District. PT Arara Abadi, Asia Pulp & Paper/Sinar Mas Group. (Available at
http://www.rainforest-alliance.org/programs/forestry/smartwood/pdfs/siak_full.pdf). Rainforest Alliance SmartWood Program (4February 2005) High Conservation Value Forest (HCVF) Assessment Report for: Serapung Unit. PT Arara Abadi, Asia Pulp &Paper/Sinar Mas Group. (Available at http://www.rainforest-alliance.org/programs/forestry/smartwood/pdfs/hcvfserapung.pdf),
Rainforest Alliance SmartWood Program (1 October 2004) High Conservation Value Forest (HCVF) Assessment Report for: Asia
Pulp & Paper/Sinar Mas Group (Pulau Muda District). (Available at
http://www.rainforest-alliance.org/programs/forestry/smartwood/documents/SmartWoodHCVFAssessmentReport_PulauMuda_Final
1October04.pdf)
29
Asia Pulp & Paper Press Release (25 August 2005) Asia Pulp & Paper Signs Agreement to Monitor Conservation of Biodiversity.
http://www.forestandtradeasia.org/files/APP%20and%20Rainforest%20Alliance.pdf
30
Asia Pulp & Paper Press Release (25 August 2005) Asia Pulp & Paper Signs Agreement to Monitor Conservation of Biodiversity.
http://www.forestandtradeasia.org/files/APP%20and%20Rainforest%20Alliance.pdf
31 SmartWood (28 April 2006) Forest Management High Conservation Value Forest (HCVF) Public Summary Verification Report of:
Bukit Batu Forest Management Unit Sinar Mas Forestry/ Asia Pulp & Paper, Riau Province, Sumatra, Indonesia. SmartWood (15May 2006) Forest Management High Conservation Value Forest (HCVF) Public Summary Verification Report of: Pulau Muda Forest
Management Unit Sinar Mas Forestry/ Asia Pulp & Paper, Riau Province, Sumatra, Indonesia. SmartWood (6 April 2006) Forest
Management High Conservation Value Forest (HCVF) Public Summary Verification Report of: Serapung Forest Management Unit
Sinar Mas Forestry/ Asia Pulp & Paper, Riau Province, Sumatra, Indonesia. SmartWood (6 April 2006) Forest Management High
Conservation Value Forest (HCVF) Public Summary Verification Report of: Siak Forest Management Unit Sinar Mas Forestry/ Asia
Pulp & Paper, Riau Province, Sumatra, Indonesia.
32
Proposals for Sumatran Tiger Conservation Area were submitted by: Forestry and Plantation Agency of Dumai (Letter No.
050/Prog-DKP/8.37 on 26 June 2003), Mayor of Dumai (Letter No. 266/Hutbun/VIII/2003 on 15 August 2003,
500/EK/XI/2003/1688 on 22 November 2003, 500/EK/TV/2004/403 on 31 March 2004), BKSDA Riau (Letter No.
2232/BKSDA-2/V-6/2003 on 8 October 2003), Parliamentary of Dumai (Letter No. 170/2003/1551 on 16 October 2003),
33
Riau Forestry Agency Letter No. 522.1/PR/7518 on 23 August 2004
34
Riau Governor Letter No. 500/EKBANG/63.18 on 18 October 2004.
35
Minister of Forestry Letters S.04/Menhut-VII/2006 and S.05/Menhut-VII/2006 on 3 January 2006.
36 Jarvie, J., Jeyeraj, K. and Hardiono, M. (Nov 2003) A High Conservation Value Forest Analysis of the Giam Siak Kecil Landscape– Riau, Sumatra. A report to WWF International.
http://eyesontheforest.or.id/index.php?option=com_docman&task=doc_download&gid=17&Itemid=2
37 SmartWood (28 April 2006) Forest Management High Conservation Value Forest (HCVF) Public Summary Verification Report of:
Bukit Batu Forest Management Unit Sinar Mas Forestry/ Asia Pulp & Paper, Riau Province, Sumatra, Indonesia.
38 SmartWood (28 April 2006) Forest Management High Conservation Value Forest (HCVF) Public Summary Verification Report of:
Bukit Batu Forest Management Unit Sinar Mas Forestry/ Asia Pulp & Paper, Riau Province, Sumatra, Indonesia.
39
WWF Indonesia website: Riau’s Elephants: The 2006 Tragedy http://www.wwf.or.id/tessonilo/Default.php?ID=926
40
Ramin is listed in the Appendix II of CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora)during the COP 13 in Bangkok 2004, http://www.cites.org/eng/notif/2004/073.pdf, and is banned for logging or trading in Indonesia
by the Ministrial Decree no. 168/Kpts-IV/2001 of 11 June 2001.
41
CITES Notification to the Parties Concerning INDONESIA Trade of ramin (Gonystylus spp.). Geneva, 1 March 2005. No.
2005/007. http://www.cites.org/eng/notif/2005/007.pdf
42
Laporan Hasil Penelitian Potensi Gonystylus Bancanus Kurz (ramin) di Areal PT. Suntara Gaja Pati dan PT. Ruas Utama Jaya
(Kelompok Hutan Sungai Buluhala, Kota Dumai) serta di Areal PT. Balai Kayang Mandiri (Kelompok Hutan Sungai Metas,
Kabupaten Siak). Oleh Tim Peneliti. Pekanbaru, Agustus 2006.
43
Edmon, E.2003. Komposisi dan Struktur Jenis Pemudaan Alam pada Hutan Rawa Gambut. Skripsi S1 Fakultas Kehutanan
Universitas Lancang Kuning, Pekanbaru (Unpublished)44
http://www.iucnredlist.org/
45
http://ffpmp2.hp.infoseek.co.jp/
46
http://firemaps.geog.umd.edu/
47
WWF, Walhi Riau, Greenpeace Southeast Asia and Jikalahari (7 August 2006) Joint Press Release: NGOs’ joint statement on forest
fires: “Stop converting peatlands” http://www.eyesontheforest.or.id/eofnew/070806release.php
48 WWF Indonesia (June 2006) WWF Monitoring Brief June 2006: Asia Pulp & Paper (APP). See also Eyes on the Forest
Investigative Reports, available at: http://www.eyesontheforest.or.id49
http://ffpmp2.hp.infoseek.co.jp/
50
http://firemaps.geog.umd.edu/
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