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FAQs|
I. General Business I. General Business | back to top
1. How profitable was APRIL last year?
2. Why does APRIL not make its Annual Report available?
II. Sustainable Fiber Supply | back to top
1. What does APRIL's Mosaic Plantation Concept mean?
Following the Mosaic Plantation Concept, HCVF areas are delineated and protected while non-HCVF areas developed into healthy plantations, which ensure that biodiversity is preserved and managed in the conservation areas. We have a capacity to produce 100 million seedlings a year, which are enough to sustain our average planting accomplishment of more than 50,000 hectares yearly. We are on track to supply 9 million tonnes of plantation fiber per year on a sustainable basis by 2009. We continue to post improvements in yield and soil productivity with ongoing R&D efforts.
4. The Sustainability Reports mentioned that 350,000 ha of land are required to meet plantation fiber supply target. However, some NGOs claim you require at least 450,000 ha. So which is it? We believe that sustainable tree plantations are the best management intervention to prevent the depletion of Indonesia's forest resources due to illegal logging. Hence, if there is any opportunity to replant degraded forests and develop these into sustainable plantations, then we will do so.
While 350,000 hectares are sufficient for our plantation fiber sustainability target, part of the plantation areas is not in our own concessions. These are jointly developed and managed by APRIL, our joint venture partners, and community tree farms. In such cases, we have to allow for some risks that may compromise the continuous supply of fiber into our mills.
6. How much progress has APRIL made in its plantation development program?
7. While APRIL's plantations are yet to be fully developed, where does APRIL get some of its wood supply?
8. What does it mean to have the Acacia Chain of Custody system?
The Acacia CoC System is regularly audited by an independent third party auditor, with WWF as observer, to confirm that the system is effectively implemented and assures customers of the tight segregation of Acacia from mixed hardwood in the entire production process.
9. How does the Community Fiber Farm program work? APRIL benefits from the fiber contribution; the wider Riau community gains from the economic benefits. The Community Fiber Program also helps eliminate illegal logging by providing a legitimate livelihood option to the communities.
III. Forest Management Certification | back to top
1. What is LEI and how credible is it?
The LEI is a constituent organization consisting of representatives from multi-stakeholder groups including NGOs, community interest groups, government and the private sector. It is presently working to achieve international accreditation with the Program for the Endorsement of Forest Certification (PEFC).
2. Is APRIL LEI-certified?
3. Why can't APRIL secure certification under the Forest Stewardship Council (FSC)? We are precluded from pursuing FSC certification in view of FSC's Principle 10.9 which states that plantations established after November 1994 are not allowed to apply for certification. We continue to present our case with the FSC in light of what to us is a restrictive principle. Nevetheless, APRIL is aligning its Indonesian operations with FSC forest management principles, (excluding principle 10.9). We are also demonstrating, through external support and independent verification, progress towards that goal. APRIL is enrolling in a recognised ‘modular approach programme' for FSC forest management certification as part of our commitment to comply with FSC principles. As a first step, APRIL will initiate a base-line HCVF assessment audit and monitoring programme in Indonesia, in collaboration with SmartWood/Rainforest Alliance and other NGO partners.
IV. Conservation | back to top
1. What are High Conservation Value Forests?
2. What is the aim of the HCVF concept?
The HCVF concept has been broadly accepted as valid, credible, and trustworthy among a variety of groups. It is proven to improve a company's sustainability of operations.
3. Does APRIL support the HCVF concept in its fiber plantation operations? This voluntary initiative was formalized in our Environmental, Social, Health and Safety Policy which was signed in June last year. APRIL is the only Asian-based company and one of only two in the global pulp and paper industry to make a public commitment to protect HCVFs.
We begin by conducting an HCVF assessment of our concession areas using the "Indonesian Toolkit", a system developed in conjunction with NGOs. These assessments are monitored by WWF Indonesia and independently peer-reviewed by ProForest UK. Areas agreed as HCVFs are delineated for conservation and management.
4. How else does APRIL protect biodiversity in its concession areas? We work with the Center for International Forestry Research (CIFOR) and the Institute of Agriculture, Bogor (IPB) on identifying conservation areas best suited for preserving the biodiversity within our concessions.
We also have this Acacia Ring concept which we applied in Tesso Nilo wherein we plant an Acacia buffer zone around the perimeter of the identified areas to protect the core forest from encroachment by illegal loggers.
5. APRIL has been accused of destroying natural forests. How does APRIL respond to this? The main cause of forest destruction is illegal logging and unsustainable agricultural practices.
We believe that the best, if not the only solution to save Indonesia's forest resources is through active management intervention by companies like APRIL, following sustainability principles. This is exemplified by the Mosaic Plantation Concept which we believe is the best model for sustainable plantation forest management. Our operations ensure that non-HCVF areas are developed into productive plantations, while areas of high conservation values are actively managed, protected and enhanced.
6. So what has APRIL done to support the conservation of forests resources in Sumatra? We actively support WWF Indonesia's campaign for the conservation of Tesso Nilo as a National Park and elephant sanctuary.
We're also actively involved in the multi-stakeholder Task Force, involving local and regional governments and WWF, to combat illegal logging in Tesso Nilo.
7. How will the concept of the Acacia Ring work in the proposed Tesso Nilo National Park? A further plan to establish a belt of Acacia around the full perimeter of the forest is still being finalised.
V. Anti-Illegal Logging Initiatives | back to top
1. Where does APRIL obtain its wood?
2. Does APRIL buy any wood from illegal sources? All wood purchases are supported by medium to long-term contracts, which are signed before delivery. No spot purchases are made at the mill gate. Wood delivery is accepted only if the supplier presents valid harvesting license, wood transport permit, and other required documents.
Erring suppliers are immediately warned in writing, and their contract terminated if found unable to implement the necessary corrective actions.
3. With illegal logging being so rampant in Indonesia, can you be sure that none of the illegal logs are used by APRIL? Third party wood-tracking audits confirm in regular annual assessments that no illegal wood enters our fiber supply. These audits are conducted by SGS with WWF as observers.
We actively support the drive against illegal logging, and we collaborate with WWF and the local and provincial governments on initiatives to combat illegal logging in the areas where we operate.
4. How can APRIL assure the strict implementation of its Wood Purchase Policy?
5. What is the effect of illegal logging activities on APRIL's fiber plantation operations?
Other than these, illegal logging does not significantly affect APRIL's fiber plantation operations. In fact, the reverse is true: APRIL's fiber plantation operations are bearing impact on illegal logging in Riau. Industrial tree plantations like APRIL's are the only management intervention that can effectively combat illegal logging in Indonesia.
6. What other steps has APRIL taken to help combat illegal logging? We also have this Acacia Ring concept which we applied in Tesso Nilo, a significantly biodiverse forest in Riau, and which we are proposing to apply in another area in the Kampar Peninsula, also in Riau. The idea is for APRIL to plant an Acacia buffer zone around the perimeter of the identified areas to protect the core forest from encroachment by illegal loggers.
In addition, APRIL, together with WWF and the local government, help set up this multi-stakeholder task force to combat illegal logging in Riau. The task force has set up checkpoints, conducts patrols and apprehends illegal loggers in coordination with local authorities.
7. Are there programs in place to help eradicate illegal logging in the long term? APRIL creates employment opportunities and legitimate livelihood options through our Community Development and Community Fiber Farm programs. We invest approximately US$1200 in every hectare we reforest, and create an estimated 35 permanent jobs for every 100 hectares planted.
8. Indonesian companies, including APRIL, have been accused of exporting illegal logs through Singapore and Malaysia. What is APRIL's reaction to this accusation? We work closely with WWF and the Indonesian Government as part of a pioneering multi-stakeholder effort to combat illegal logging. Poverty is the single biggest reason driving people to engage in illegal logging. APRIL provides a solution through employment generation, and livelihood options with our Community Development and Community Fiber Farm programs.
9. Eyes of the Forest recently accused APRIL of using pulpwood suppliers with invalid licenses that engaged in illegal logging in the Kampar Peninsula. What are APRIL's comments on this allegation? APRIL's strict Wood Purchase Policy is verified by a third party, including WWF, and ensures no illegitimate wood enters the production chain. APRIL is opposed to illegal logging and is actively fighting it. We have implemented internal controls to stop illegal logging from entering the fiber flow, and continue to work with the government and WWF to prevent illegal logging in areas where we operate.
VI. Peatland Development | back to top
1. NGOs claim that APRIL's development in the peat lands of Sumatra will destroy the remaining swamp forests, including mangrove forest reserves and protected lowland forests. What does APRIL have to say about this?
The best way to preserve the biodiversity of the area is through active forest management following sustainability principles.
2. In the case of the additional concessions in the Kampar Peninsula, how will APRIL protect the peat lands when it will clear large areas and convert these to Acacia plantations? APRIL adopts best practice technology in managing the hydrological issues associated with peat land development. APRIL is organizing a scientific-based consortium of experts on peatland development, hydrology, HCVFs, carbon issues, etc. to support the company in its Kampar Peninsula Development Strategy.
APRIL will actively prevent illegal logging within its concession area.
3. Another key concern is that APRIL's development will drain the peat lands and destroy the hydrology of the area. How does APRIL plan to address this?
The aim is to design the canal system in a way that will prevent access to illegal loggers to inner parts of the peninsula while ensuring the integrity of the outside area's hydrology.
4. NGOs claim that development on the peat lands is illegal and that Indonesian law states that peat land with a depth of 3 meters must be protected. So is APRIL in violation of this law? A large proportion of the proposed concession ring in Kampar Peninsula has an average peat depth of less than 2 meters (according to the Map of Peatland Distribution in Sumatra).
APRIL will protect deep peat eco-systems within its concession areas.
5. Climate change due to the release of carbon dioxide is also a major environmental concern. Will APRIL's peat land development involve draining and therefore, cause the peat land to rot eventually and emit huge amounts of carbon to the atmosphere?
6. Will APRIL's peat land development cause the peat levels to subside?
With correct hydrology systems and with our practice of spreading the harvesting residues to protect the peat from drying, subsidence will be minimized and managed.
7. APRIL has claimed that the present plantations would be enough to supply the mill in Kerinci. Why does the company need this extra land in the Kampar Peninsula? We believe that sustainable tree plantations are the best management intervention to prevent the depletion of Indonesia's forest resources due to illegal logging. Hence, if there is any opportunity to replant degraded forests and develop these into sustainable plantations, then we will do so. While our current plantation is sufficient to meet our demands, part of the plantation areas is not in our own concessions. These are jointly developed and managed by APRIL, our joint venture partners, and community tree farms. In such cases, we have to allow for some risks that may compromise the continuous supply of fiber into our mills.
VII. WWF Collaboration on Tesso Nilo | back to top
1. What and where is the Tesso Nilo Forest?
2. Why is it important to protect Tesso Nilo?
3. What are the threats to the Tesso Nilo Forest?
4. What is the history of WWF and APRIL in Tesso Nilo?
As of August 5, 2002, we extended this moratorium to ban the purchase of any wood sourced from Tesso Nilo Forest. To ensure the implementation of this moratorium, APRIL engaged a certification company, SGS, as a third party auditor to verify the source of wood entering APRIL's mills. WWF-Indonesia was an observer of the audits. So far, all the audits have been conducted with satisfactory results.
5. The existing TNNP and the proposed extension is threatened by encroachment activities and illegal logging. How would this initiative provide a solution to these problems? APRIL will also implement the Mosaic Plantation Concept by planting a ring of Acacia around the park, as part of the conservation strategy. This Acacia ring will act as a barrier to reduce animal-human conflict and prevent access to the conservation area.
Additionally, APRIL will also implement the Community Development Program, especially the Integrated Farming System and HTR (Community Forestry) schemes, in the surrounding villages.
6. Do APRIL and WWF have the same definition of sustainable forestry? If not, what are the differences? Based on this common framework, APRIL and WWF since 2002 have been jointly pursuing areas of shared advocacies such as combating illegal logging in Riau, establishment of a protected habitat for the Sumatran elephants, and most recently, the adoption of a policy to protect High Conservation Value Forests.
It'll be unrealistic to say and expect that there were and will not be disagreements. As with any relationship, disagreements are constructively and openly discussed until resolutions to these are reached. We look at our relationship as a process which both parties are keenly at work to nurture and progress.
7. Are WWF and APRIL still in discussions or negotiations, or have relations been stopped?
8. Are past agreements with WWF being honored, or has a decision been made to no longer adhere to past agreements?
9. How do you fix the current unresolved issues, if any?
VIII. Expansion | back to top
1. What are your plans with regards to expansion in China?
3. What is the current capacity for your China mills ?
4. Will the China mill continue to rely mainly on imported woodchips?
1. A lot of NGO's - Friends of the Earth in particular - label these reports as "greenwash reports". What do you say about that? We've made our second SR more open to NGO involvement by publishing in full comments and criticisms from various NGOs interviewed in a Stakeholder Audit conducted in 2004, including unedited interviews with Yayasan Riau Mandiri and WWF Indonesia on their thoughts on APRIL's environmental and social performance.
Interested stakeholders are welcome to visit Kerinci and see our operations first hand.
2. The SR, however, does not report any financial information. How do you explain that?
3. Many say the SR is basically at best a communications, if not a PR, exercise. Is this true in the case of your report?
X. Environmental Health Impact | back to top
1. Is it true that wastewater discharge from APRIL's mills causes skin diseases?
Both studies confirmed that the rates of skin diseases among the villagers were low (<5%), and that river water quality was well within acceptable limits.
2. Does APRIL monitor the impact of its effluents on the water quality of the nearby Kampar River?
These results are being independently verified by a local NGO (Yayasan Riau Mandiri), the University of Riau, and the Environmental Protection Agency of the Indonesian Government. Past verifications were conducted by the Finnish Environmental Research Group (in 1999 and 2001).
3. What about the air quality in and around the Mill? Does it have any impact on the respiratory health of the communities?
Regular monitoring shows that our air emissions are well below the standard limits established by the Indonesian Ministry of Environment. The results of our monitoring are verified by SUCOFINDO, a leading independent certification company, and the National University of Singapore (NUS).
4. What standards does APRIL use to monitor the environmental and health impacts of its mill operation? The mill has been awarded the "Green Rating" for PROPER 2004 - 2005 by the Ministry of Environment, in its recent Satisfactory Compliance checks. The Green Ratings indicate that APRIL's mill performance is 50 percent above legal standards and that the mills use technology that is clean and green, minimizes wastes, prevents pollution and conserves resources. The rating system is given as part of the national Program for Pollution Control Evaluation and Rating (PROPER), a public reporting initiative implemented by the Indonesian government to promote compliance with environmental standards and strengthen transparency.
The Indonesian Government awarded APRIL with the Golden Flag Award, the highest recognition for excellent performance in implementing Occupational Safety and Health System, in 2005.
5. What about the disposal of solid wastes? Does APRIL have any program for recycling or reducing its solid wastes from its mill operations?
In a joint project with research institutions in Bogor, we use sludge as compost material to fertilize our plantations in mineral soils. We also use boiler fly ash as a soil ameliorant (pH adjuster) in our peat land plantations. Preliminary results of the pilot application have shown encouraging results.
6. There is a recurring haze problem in Sumatra caused by forest fires and community land-clearing. Does APRIL use burning to clear its land?
7. What does APRIL do to prevent or minimize the risk of fire in its fiber plantations? We have invested in specialized air, water, and ground forest firefighting equipment and training of our fire and safety personnel in the prevention and suppression of fires.
XI. Social Conflict Resolution | back to top
1. How does APRIL resolve land claims or issues of potential social dispute?
Through this process, we resolve claims peacefully and transparently.
2. Does APRIL forcibly remove the villagers from their ancestral lands?
Independent audits on our land dispute resolution process by SGS in 1998, and ProForest in January 2004, have confirmed that there is no use of coercion or intimidation at any point of the resolution process.
3. Does APRIL have any relationship with the Indonesian military? If you have any further questions that are not addressed in the foregoing, please contact:
Corporate Communications Dept
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