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  • APKI Supports 100% Adherence To Indonesian National Standards

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    Jakarta-based Asia Pulp & Paper Group (APP), one of the world’s largest pulp and paper producers, joined Indonesia’s leading trade associations and companies involved in exporting wood-based products to pledge its support of and commitment to Indonesia’s national timber legality and traceability standards. The unified industry group also called on countries worldwide to adopt national procurement policies recognizing and endorsing Indonesian standards. “We are here today representing the Indonesia Pulp and Paper Association (APKI) and its membership across Indonesia with a simple message and call to action: APKI members are jointly committed to 100 percent adherence to Indonesia’s National Standard for wood legality. We want to send a message to the world that we will not tolerate, nor will we accept illegal wood entering the Indonesian pulp and paper supply chain,” said Ms. Aida Greenbury, APP Managing Director. Indonesia’s chain of custody (CoC) certification program, enacted in 2009, establishes strict wood legality and verification systems (Sistem Verifikasi Legalitas Kayu/SVLK) to ensure wood products exported from the country are legal and traceable to verified points of origin. SVLK certification is designed to ensure that the industry will only receive and process timber from legal sources according to the regulations of Indonesia, covering aspects of licensing, harvesting, transporting and processing for the industry. SVLK is an important step in the effort to achieve full Sustainable Forest Management (SFM) certification. Ms. Greenbury, speaking at a forum in Jakarta Thursday (March 10), said foreign countries importing wood-based products from Indonesia should have complete confidence that Indonesian products certified under SVLK guidelines adhere to the highest standards for wood legality and support SFM principles. These standards should be accepted and considered equal to those legal requirements created by countries with the intention to protect their own natural forests and mandate sustainable plantation forestry practices. “Based on these principles, we must be granted the opportunity to engage in free and fair trade with countries around the world, with governments respecting our sovereign right to develop a healthy pulp and paper industry for the benefit of our citizens. We need a level playing field, with fair trade granted on a reciprocal basis and where governments refrain from passing legislation that effectively restricts Indonesia’s right and opportunity to compete,” said Ms. Greenbury. A vibrant and growing pulp and paper industry is essential to Indonesia’s emerging economy. Forestry and related industries contribute approximately $18 billion of Indonesia’s GDP, or 3.3 percent. That’s more than triple the average across Asian countries of 1.1 percent. The pulp and paper industry, which is estimated to be responsible for approximately 250,000 of Indonesia’s 600,000 jobs in forestry and related industries, also generates an estimated half of the US$7 billion annually that the forestry sector contributes to state income. “The Government of Indonesia has a strong commitment to help reduce poverty as part of its support for UN Millennium Development Goals. And the pulp and paper industry plays a critically important role in that effort, both through direct job creation as well as community development and empowerment programs,” Ms. Greenbury said. “APKI members across Indonesia work in partnership with a wide range of stakeholders, government leaders, local NGOs and community leaders to help create a positive environment to help advance our efforts to attain SFM certification.” At the forum attended by a wide range of public and private forest industry stakeholders from Indonesia, the European Union, the US, Australia and Japan, Ms. Greenbury outlined APP’s path to 100 percent certification of its pulpwood supply, CoC and Legal Origin Verification and Traceability systems. She als

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    Jakarta-based Asia Pulp & Paper Group (APP), one of the world’s largest pulp and paper producers, joined Indonesia’s leading trade associations and companies involved in exporting wood-based products to pledge its support of and commitment to Indonesia’s national timber legality and traceability standards. The unified industry group also called on countries worldwide to adopt national procurement policies recognizing and endorsing Indonesian standards. “We are here today representing the Indonesia Pulp and Paper Association (APKI) and its membership across Indonesia with a simple message and call to action: APKI members are jointly committed to 100 percent adherence to Indonesia’s National Standard for wood legality. We want to send a message to the world that we will not tolerate, nor will we accept illegal wood entering the Indonesian pulp and paper supply chain,” said Ms. Aida Greenbury, APP Managing Director. Indonesia’s chain of custody (CoC) certification program, enacted in 2009, establishes strict wood legality and verification systems (Sistem Verifikasi Legalitas Kayu/SVLK) to ensure wood products exported from the country are legal and traceable to verified points of origin. SVLK certification is designed to ensure that the industry will only receive and process timber from legal sources according to the regulations of Indonesia, covering aspects of licensing, harvesting, transporting and processing for the industry. SVLK is an important step in the effort to achieve full Sustainable Forest Management (SFM) certification. Ms. Greenbury, speaking at a forum in Jakarta Thursday (March 10), said foreign countries importing wood-based products from Indonesia should have complete confidence that Indonesian products certified under SVLK guidelines adhere to the highest standards for wood legality and support SFM principles. These standards should be accepted and considered equal to those legal requirements created by countries with the intention to protect their own natural forests and mandate sustainable plantation forestry practices. “Based on these principles, we must be granted the opportunity to engage in free and fair trade with countries around the world, with governments respecting our sovereign right to develop a healthy pulp and paper industry for the benefit of our citizens. We need a level playing field, with fair trade granted on a reciprocal basis and where governments refrain from passing legislation that effectively restricts Indonesia’s right and opportunity to compete,” said Ms. Greenbury. A vibrant and growing pulp and paper industry is essential to Indonesia’s emerging economy. Forestry and related industries contribute approximately $18 billion of Indonesia’s GDP, or 3.3 percent. That’s more than triple the average across Asian countries of 1.1 percent. The pulp and paper industry, which is estimated to be responsible for approximately 250,000 of Indonesia’s 600,000 jobs in forestry and related industries, also generates an estimated half of the US$7 billion annually that the forestry sector contributes to state income. “The Government of Indonesia has a strong commitment to help reduce poverty as part of its support for UN Millennium Development Goals. And the pulp and paper industry plays a critically important role in that effort, both through direct job creation as well as community development and empowerment programs,” Ms. Greenbury said. “APKI members across Indonesia work in partnership with a wide range of stakeholders, government leaders, local NGOs and community leaders to help create a positive environment to help advance our efforts to attain SFM certification.” At the forum attended by a wide range of public and private forest industry stakeholders from Indonesia, the European Union, the US, Australia and Japan, Ms. Greenbury outlined APP’s path to 100 percent certification of its pulpwood supply, CoC and Legal Origin Verification and Traceability systems. She als

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    APKI Supports 100% Adherence To Indonesian National Standards

    Uploaded by

    Asia Pulp and Paper
    Jakarta-based Asia Pulp & Paper Group (APP), one of the world’s largest pulp and paper producers, joined Indonesia’s leading trade associations and companies involved in exporting wood-based products to pledge its support of and commitment to Indonesia’s national timber legality and traceability standards. The unified industry group also called on countries worldwide to adopt national procurement policies recognizing and endorsing Indonesian standards. “We are here today representing the Indonesia Pulp and Paper Association (APKI) and its membership across Indonesia with a simple message and call to action: APKI members are jointly committed to 100 percent adherence to Indonesia’s National Standard for wood legality. We want to send a message to the world that we will not tolerate, nor will we accept illegal wood entering the Indonesian pulp and paper supply chain,” said Ms. Aida Greenbury, APP Managing Director. Indonesia’s chain of custody (CoC) certification program, enacted in 2009, establishes strict wood legality and verification systems (Sistem Verifikasi Legalitas Kayu/SVLK) to ensure wood products exported from the country are legal and traceable to verified points of origin. SVLK certification is designed to ensure that the industry will only receive and process timber from legal sources according to the regulations of Indonesia, covering aspects of licensing, harvesting, transporting and processing for the industry. SVLK is an important step in the effort to achieve full Sustainable Forest Management (SFM) certification. Ms. Greenbury, speaking at a forum in Jakarta Thursday (March 10), said foreign countries importing wood-based products from Indonesia should have complete confidence that Indonesian products certified under SVLK guidelines adhere to the highest standards for wood legality and support SFM principles. These standards should be accepted and considered equal to those legal requirements created by countries with the intention to protect their own natural forests and mandate sustainable plantation forestry practices. “Based on these principles, we must be granted the opportunity to engage in free and fair trade with countries around the world, with governments respecting our sovereign right to develop a healthy pulp and paper industry for the benefit of our citizens. We need a level playing field, with fair trade granted on a reciprocal basis and where governments refrain from passing legislation that effectively restricts Indonesia’s right and opportunity to compete,” said Ms. Greenbury. A vibrant and growing pulp and paper industry is essential to Indonesia’s emerging economy. Forestry and related industries contribute approximately $18 billion of Indonesia’s GDP, or 3.3 percent. That’s more than triple the average across Asian countries of 1.1 percent. The pulp and paper industry, which is estimated to be responsible for approximately 250,000 of Indonesia’s 600,000 jobs in forestry and related industries, also generates an estimated half of the US$7 billion annually that the forestry sector contributes to state income. “The Government of Indonesia has a strong commitment to help reduce poverty as part of its support for UN Millennium Development Goals. And the pulp and paper industry plays a critically important role in that effort, both through direct job creation as well as community development and empowerment programs,” Ms. Greenbury said. “APKI members across Indonesia work in partnership with a wide range of stakeholders, government leaders, local NGOs and community leaders to help create a positive environment to help advance our efforts to attain SFM certification.” At the forum attended by a wide range of public and private forest industry stakeholders from Indonesia, the European Union, the US, Australia and Japan, Ms. Greenbury outlined APP’s path to 100 percent certification of its pulpwood supply, CoC and Legal Origin Verification and Traceability systems. She als

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    APKI Supports 100% Adherence to 

    Indonesian National Standards


    Indonesian National Standards
    Legality and Free Trade Critical to Realizing Indonesia’s 
    Pulp and Paper Opportunity

    Aida Greenbury, Managing Director
    Asia Pulp & Paper Group (APP)
    10 March 2011
    Achieving SFM in Indonesia

    National Standards Reciprocal       Free 
    for Legality and Fair Trade

    Sustainable Forest
    Sustainable Forest 
    Management
    (SFM) and REDD

    Social and Economic Potential
    2
    Pulp & Paper Essential to Indonesia Economy

    • Forestry and related industries contribute estimated $18 
    billion (3.3%) of Indonesia’s GDP, more than triple the average 
    across Asian countries 

    • Pulp
    Pulp and paper industry responsible for nearly 250,000 of 
    and paper industry responsible for nearly 250 000 of
    600,000 forestry‐related jobs in Indonesia 

    • In 2009 the forestry sector in Indonesia contributed about 
    US$7 billion a year to the state income, with pulp industries 
    contributing approximately 50 percent of that total

    3
    Market Advantages Inherent to Indonesia

    M3 per Hectare each Yr
    25

    20

    15

    10

    0
    Brazil ‐ Hardwood  Indonesia ‐ China ‐ Hardwood  Chile ‐ Hardwood  North American ‐ Europe ‐ Softwood   
    10 yr cycle Hardwood 10 yr  30 yr cycle 35 yr cycle Softwood    65 yr  65 yr cycle
    cycle cycle

    4
    Growth in Asia Paper Demand 
    Asia‐Pacific Paper Manufacturing Countries 
    Millions of Tons 2008/9

    80
    60
    40
    20
    0

    6
    Key Matrix: Indonesian Paper & Board Sector  
    14.0
    Million Ton / Year
    12.0

    10.0

    8.0 Capacity
    Production
    6.0 Import
    Export
    4.0
    Consumption
    2.0

    0.0
    2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 
    (e)
    Key Matrix: Indonesia Pulp Sector
    9.0
    Million Ton / Year
    8.0
    7.0
    6.0
    Capacity
    5.0
    Production
    4.0
    Import
    3.0 Export
    2.0 Consumption

    1.0
    0.0
    2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 
    (e)
    Indonesia Pulp & Paper Industry 2008/9

    Indonesia
    100

    90

    80

    70

    60

    50

    40

    30

    20

    10

    Production volume Tons  CO2 Tons from  Paper  Total National Forestry  Pulp and Paper 


    of Paper Production Millions of Hectares Plantation forestry 
    Millions of Hectares

    9
    Asia‐Pacific Recycled Waste Paper Imports 2008/9

    30

    25

    20
    From Own Market
    15
    From Other Asia
    10 From Europe
    5 From North America

    0
    To China To Japan To The  To 
    Republic  Indonesia
    Korea

    10
    National Standards Eliminate Need for 
    Restrictive Legislation 

    • Historical concerns with illegal timber has led 
    to restrictive trade legislation that hampers 
    the growth of Indonesia’s economy
    • We need to avoid confusing trade restrictions 
    We need to avoid confusing trade restrictions
    that open the door to misleading attacks on 
    Indonesian products
    • Adherence to SVLK instills confidence and 
    eliminates need for foreign import laws
    Case Study: APP’s Path to 
    Certification Beyond Compliance
    APP Pulpwood Consumption

    100
    90 0‐10% standard 
    threshold for 
    waste material 
    80 consumption

    70
    60
    50
    40
    30 Mixed Wood Residues (%)
    20
    Sustainable Plantation 
    10 Wood (%)
    0
    2005 2006 2007 2008 2009 2010 2015

    Source: APP Quality Assurance Division
    Chronology of CoC Commitment

    Legality Voluntary  & Beyond Compliance

    National Law &  Procurement  CoC/LoV LEI Audit  CoC/LoV LEI Audit by  Annual CoC/LoV CoC/LoV LEI  Continual 
    International  Policy 2003 SGS 2005/06 LEI  Audit &   Audit & TLTV‐ Improvement
    Regulations TLTV Audit by  VLO/VLC SGS 
    SGS Audit 2010
    Result: Result: Major Improvement: Major Improvement: Major  • First Certified  Result:
    Improvement: TLTV‐VLC in 
    • Spatial Planning  CoC System  • Security Capacity  • Radar Mapping &  • GAPs and 
    the region:
    the region: 
    Policy Implementation Building Planning:  • Plantation  CARs closing
    556,318 
    Data/Procedure  planning, man 
    • Supplier  • Community  hectares. • Scope 
    Incorporation &  power, health 
    Compliance Awareness expansion
    Implementation & safety  • In total 
    • Legality  • Multi‐stakeholder  compliance 1,786,365  • Logo use is 
    • Digital Camera ID: 
    Documentation Participation hectares of  being 
    Replication • Set aside area 
    independently  planned.
    • Environmental • Radar Mapping &  monitoring
    • On Line Tracking  verified forest 
    Planning
    • Human Rights System: Expansion • Concession  areas.
    • Digital Camera ID inventory 
    • Social • GPL System: Manual 
    • On Line Tracking  methodology
    & Implementation 
    System Improvement • Stakeholder 
    • GPL System consultation 
    • Wet Land Operation: 
    Weigh Bridge / 
    Weigh Scale

    14
    Pulpwood Supplier Certification Progress 

    MHa
    3
    2.5
    2
    1.5 LEI SFM Certification
    LEI SFM Certification
    1 TLTV
    LEI CoC Audit
    0.5
    PHPL MoF
    0
    2005
    2006
    2007
    2008
    2009
    2010
    2011
    2012
    2013
    2014
    2015
    2016
    2017
    2018
    Year
    2019
    2020
    15
    APP Sustainability Roadmap: Vision 2020

    Today Tomorrow
    100% of APP's pulpwood supplies are legal  100% of APP's pulpwood supplies will remain 
    under Indonesian law legal by law

    71% of APP's pulpwood supplies are voluntarily 
    audited to meet Chain of Custody (CoC) and  100% of  APP's pulpwood supplies will
    verification of legal origin of fiber (LoV)
    verification of legal origin of fiber (LoV) 
    be CoC and LoV compliant by 2015
    standards set by  SGS TLTV‐VLO/VLC & the 
    Indonesian Ecolabelling Institute (LEI)

    52% of APP's pulpwood supplies meet 
    mandatory Sustainable Forest Management  100% of APP's pulpwood supplies will 
    (SFM) standards set by Indonesian government  be SFM compliant by 2015
    with multi‐ stakeholder consultations

    23% of APP's pulpwood supplies have passed  100% of APP's pulpwood supplies  will 
    voluntary audits or been certified as SFM 
    be LEI‐SFM compliant by 2020
    forests by LEI 

    Source: APP 16
    Rio +20:  Act now to Save The Forests

    • Replace with screen shot

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