Asia Pacific Resources International Holdings

Last updated
Asia Pacific Resources International Holdings Limited (APRIL)
Type Private
Industry Pulp Paper and Mill
HeadquartersHeadquarters - Singapore, operations - Indonesia and China
Key people
Chairman: Bey Soo Khiang; President: Praveen Singhavi
ProductsPulp and Paper
Website aprilasia.com

Asia Pacific Resources International Holdings Limited, or APRIL, is a developer of fibre plantations and the owner of one of the world's largest pulp and paper mills with operations mainly in Indonesia and China. APRIL mainly produces bleached hardwood kraft pulp and uncoated, wood-free paper, including its Paperone brand of office paper. [1] Founded in 1993, [2] APRIL is managed by Royal Golden Eagle and owned by Indonesian business man Sukanto Tanoto living in Singapore. [3] Royal Golden Eagle also manages companies in paper, palm oil, construction, and energy business sectors. [4]

Contents

Riau Andalan Pulp and Paper

APRIL's main pulp and paper subsidiary is Riau Andalan Pulp & Paper. PT RAPP, usually called RAPP Riau, operates in Riau Province, Sumatra, Indonesia. APRIL's pulp and paper mill located at Pangkalan Kerinci in Riau Province, Sumatra, Indonesia is capable of producing up to 2.8 million tonnes of pulp and 1.15 million tonnes of paper per year. [5] [6] Beginning operation in 1995, Friends of the Earth called RAPP the biggest paper pulp mill in the world, with a capacity of 2 million tonnes per year. [3]

Sustainability

Certification

In June 2015, APRIL became the first Indonesian forest company to receive the sustainable forest management certification from the Programme for the Endorsement of Forest Certification. [7] The company previously received their chain-of-custody certification in 2010 for its manufacturing operations.

It was later accepted as an international stakeholder member by the Programme for the Endorsement of Forest Certification in February 2016. [8]

APRIL's operations are also certified under OHSAS 18001 (Safety Management Systems), ISO 9001 (Quality Management Systems), and ISO 14001 (Environment Management Systems). [9]

Eco-restoration

In 2013, APRIL established the Restorasi Ekosistem Riau project to restore, protect and manage 20,000 hectares of degraded peat forests. The eco-restoration area later expanded to 70,000 hectares in June 2015. [10] [11] The project is implemented in collaboration with Fauna and Flora International, The Nature Conservancy and social non-governmental organization Bidara. APRIL announced at COP21 a US$100 million investment over the course of 10 years focused on eco-restoration and conservation, in addition to doubling the eco-restoration area to 150,000 hectares. [12] [13] [14] [15] [16]

Sustainable forest management policy

APRIL published its sustainable forest management policy in January 2014. [17] As part of the policy, an independent stakeholder advisory committee comprising non-governmental organizations and forestry experts was set up to oversee its implementation [18] Grievances and alleged violations of APRIL's the management policy highlighted by non-governmental organizations and civil society groups are reviewed by the stakeholder advisory committee and reported publicly at APRILdialog.com.

In June 2015, APRIL announced its enhanced sustainable forest management policy. [19] [20] [21] The policy was cautiously received by non-governmental organizations and third party organisations. Greenpeace suspended its campaign against APRIL and announced it would be “watching closely to make sure that today’s announcement leads to real change on the ground.” [21] World Wide Fund for Nature also expressed that they cautiously welcomed APRIL's enhanced Sustainable Forest Management Policy. [22]

APRIL provides a grievance resolution procedure and a dashboard to monitor all grievance handling process in their website. [23]

Criticism and controversies

Environmental impact

APRIL has been criticised by non-governmental organizations for contributing to deforestation in Indonesia. In 2001, Friends of the Earth accused APRIL of fuelling the deforestation of Indonesia. [3]

In June 2015, APRIL promised to halt deforestation [24] and announced its enhanced Sustainable Forest Management Policy. As part of the new sustainability policy, APRIL said it was moving up by four years its plans to harvest only wood from its own plantations. [25]

Forest Stewardship Council Disassociation

On August 8, 2013, Germany-based non-profit certification organisation Forest Stewardship Council announced that it has ended all association with APRIL after a complaint filed in May of that year by non-governmental organizations Greenpeace International, Rainforest Action Network and WWF Indonesia alleging violation of the council's policy of association. [26]

In response, APRIL in a press statement, said that they “proactively withdrew from FSC certification of their own volition” earlier in July. [27] In September, 2014, APRIL approached the Forest Stewardship Council to begin the processing of ending their disassociation. As of 2023, work is ongoing and includes APRIL issuing an “acknowledgement of harm” letter. [28]

Fire and haze issues and management

In 2013, APRIL was named one of the eight companies responsible for sending hazardous level of smog to Singapore and Malaysia. [29]

APRIL invests in fire prevention and suppression. The company invests more than $6 million in fire fighting equipment and maintains a 700-member rapid response team. [30] In 2015, it pioneered the Fire-Free Village Programme, [31] [32] [33] an incentive-based initiative that involves working at the community level to encourage alternatives to fire as a land management tool. [34] Under this program, APRIL also conducts community education campaign, monitors air quality and even hires and trains people to be village crew leaders to spread "no-burn" message. [35]

In 2016, APRIL became a founding member of the Fire Free Alliance, a voluntary multi-stakeholder platform for members to share information and resources to fight forest fires in Southeast Asia. One programme implemented by the Fire Free Alliance is the Fire-Free Village Programme. [36] In May 2016 APRIL is one of private companies involved in Indonesian Government's pilot project to establish forest fire prevention procedures, through its subsidiary PT RAPP. [37]

Corruption allegations

In 2011, after working in APRIL for 14 months, Alain Monie, the former French CEO filed a lawsuit against APRIL in Singapore because he did not receive his salaries, travel expenses, bonus and compensation as promised. Monie was awarded damages after the leadership refused to pay outstandings. [38] This non-payment of dues continues to this day with reports continuously emerging in local and regional media.[ citation needed ]

Related Research Articles

<span class="mw-page-title-main">Illegal logging</span> Harvest, transportation, purchase, or sale of timber in violation of laws

Illegal logging is the harvest, transportation, purchase, or sale of timber in violation of laws. The harvesting procedure itself may be illegal, including using corrupt means to gain access to forests; extraction without permission, or from a protected area; the cutting down of protected species; or the extraction of timber in excess of agreed limits. Illegal logging is a driving force for a number of environmental issues such as deforestation, soil erosion and biodiversity loss which can drive larger-scale environmental crises such as climate change and other forms of environmental degradation.

<span class="mw-page-title-main">Forest Stewardship Council</span> Global forest certification system

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Sinar Mas is one of the largest conglomerates in Indonesia. It was formed in 1938. It has numerous subsidiaries including Asia Pulp & Paper and palm oil producer PT SMART. The company also acquired Berau Coal Energy from Asia Resource Minerals PLC, a major mining group founded by Nathaniel Philip Rothschild, in a takeover initiated by Fuganto Widjaja.

<span class="mw-page-title-main">Asia Pulp & Paper</span> Indonesian pulp and paper company

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<span class="mw-page-title-main">Sustainable Forestry Initiative</span> North American forest certification standard

The Sustainable Forestry Initiative (SFI) is a sustainability organization operating in the U.S. and Canada that works across four pillars: standards, conservation, community, and education. SFI was founded in 1994 by the American Forest & Paper Association (AF&PA). SFI is the world's largest single forest certification standard by area. SFI is headquartered in Ottawa and Washington, D.C.

<span class="mw-page-title-main">Forest product</span> Material derived from forestry

A forest product is any material derived from forestry for direct consumption or commercial use, such as lumber, paper, or fodder for livestock. Wood, by far the dominant product of forests, is used for many purposes, such as wood fuel or the finished structural materials used for the construction of buildings, or as a raw material, in the form of wood pulp, that is used in the production of paper. All other non-wood products derived from forest resources, comprising a broad variety of other forest products, are collectively described as non-timber forest products (NTFP). Non-timber forest products are viewed to have fewer negative effects on forest ecosystem when providing income sources for local community.

Sukanto Tanoto is an Indonesian businessman primarily involved in resources-based manufacturing. After starting as a supplier of equipment and materials for the state-owned oil firm Pertamina, Tanoto moved into the forest industry in 1973. Tanoto's business interests are represented by the Royal Golden Eagle (RGE) group of companies, previously known as Raja Garuda Mas.

<span class="mw-page-title-main">Environment of Indonesia</span>

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Royal Golden Eagle is a global integrated, resource-based industrial group, with businesses in paper, palm oil, viscose, construction and energy, property and asset management. Owned by Indonesian businessman Sukanto Tanoto, the group employs 60,000 people worldwide with assets exceeding US$30 billion.

<span class="mw-page-title-main">Giam Siak Kecil-Bukit Batu Bioreserve</span>

Giam Siak Kecil-Bukit Batu Bioreserve is a peatland area in Riau Province of Sumatra, covering 705,271 hectares (2,723.07 sq mi) and large parts of Bengkalis Regency and Siak Regency. It is a declared UNESCO Man and the Biosphere Reserve and supports a sustainable timber industry. It is home to two wildlife reserves, namely Giam Siak Wildlife Reserve and Bukit Batu Wildlife Reserve; flagship species include the Sumatran elephant and Sumatran tiger.

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Riau Ecosystem Restoration is a multi-party project to restore and conserve an area of ecologically important peat forest in Indonesia's Sumatra island. The project consists of 130,000 ha on the Kampar Peninsula, and another 20,000 ha on the nearby Padang Island.

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