In a statement on Friday Dec 22 , APP did not deny ownership or having links with most of the 27 suppliers that the Associated Press report said it had - except one with a firm named Muara Sungai Landak. But APP said its ownership structures did not weaken its sustainability commitments and added that such partnerships would instead allow the firm to enforce its sustainability commitments. For instance, the firm cited how "all our relationships with our suppliers are guided by our Forest Conservation Policy and our zero-deforestation pledge". It also added that there are safeguards to ensure compliance, and that contracts with rogue suppliers can be terminated. These allegations are false and malicious, and we strongly refute them," said the APP, Indonesia's largest pulp and paper firm, in response to an article published online by the Associated Press on Tuesday.
Asia Pulp & Paper (part of Sinar Mas) | Business & Human Rights Resource Centre
In , Tjiwi Kimia's PM 9 started operation with an annual capacity of , tons. In , paper machine No. APP-China employs over 37, people and created 5, new jobs in It was soon heavily leveraged ; from to , it only produced 1. According to a Friends of the Earth report from , APP has cleared over , hectares of rainforest in the past decade, and planned to cut another , over the next five years.
But NGOs fear the mill will lead to more deforestation and cause more fires. Assistant foreign editor David Fogarty looks at both sides of the story. At 2,ha, the mill, river and sea ports are the size of a town. But to do that, the mill, once running at full capacity by around , will consume a vast amount of timber. And that has conservationists worried.