APRIL Indonesia

Sectors: forestry - pulp and paper

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Created before Nov 2016

Last update: Nov 28 2017

Asia Pacific Resources International Holdings Limited, or APRIL, is Indonesia's second largest pulp and paper producer. It develops fibre plantations
and it is the owner of one of the world's largest pulp and paper mills. It also has operations in China. APRIL mainly produces bleached hardwood kraft
pulp and uncoated, wood-free paper.

Headquarters Jl M.H.Thamrin (d/h Jl. Teluk Betung) No. 31, Kebon Melati – Tanah Abang
10230 Jakarta Pusat
Indonesia

CEO/chair Sukanto Tanoto

President

Website http://www.aprilasia.com/

Ownership APRIL is part of the Indonesian Royal Golden Eagle Group (RGE), owned by Indonesian businessman Sukanto
Tanoto, who also owns Toba Pulp Lestari, Sateri, and Asian Agri. Royal Golden Eagle is a holding company which
has activities ranging from paper, palm oil, construction, and energy business sectors. It also owns palm oil
firm Asian Agri.

Subsidiaries Asia Symbol – China

Riau Andalan Kertas - Riaupaper – Indonesia
Riau Andalan Pulp & Paper (RAPP or Riaupulp) – Indonesia

Issues
Social issues
APRIL and its subsidiaries have a long history of involvement in land and social conflicts in Riau, Indonesia. A 1998 study by the independent auditor,
SGS, found that over 40,000 hectares of APRIL's concession area in Riau have been claimed by local communities as their traditional land (FOE, 2001).
Social conflicts have erupted in several communities.

A comprehensive list of past social conflicts (until 2012) can be found in the Eyes on the Forest report.

In August 2009, three people were killed and 16 wounded while resisting private security forces linked to an APRIL subsidiary during a protest
over land rights in the village of Tangun. The APRIL Group claims these people died in an accident, but according to APRIL-Watch, the national
Indonesian human rights commission does not believe APRIL's claim.
In 2011, the Teluk Meranti village started a lawsuit against the Ministry of Forestry, accusing it of not protecting human rights. The villagers have
been in conflict with RAPP ever since it arrived in 2009 and claimed a concession of 151,254 hectares in Pelalawan. The community claim 25,842
hectares of the concession overlap with their customary lands.
Since 2011, when PT. RAPP started operations on the island of Pulau Padang, they have caused conflicts with the local community. In January
2012, after weeks of protest in Jakarta, 28 citizens of Pulau Padang sewed their mouths in protest against PT. RAPP's operations on their
customary land. They convinced the Ministry of Forestry to temporarily suspend the forest clearance operations, but in 2013 operations
resumed, after three villages were removed from the concession. In January 2015, people from four villages of Pulau Padang were still
protesting against PT RAPP.
In March 2012, residents of Gunung Sahilan in Riau, came in conflict with RAPP over a 2,000 hectares area which they claim is their traditional
land. A joint statement of NGOs accused RAPP of provoking a riot by arming its 500 employees and security with machetes and heavy machinery
such as skidders to ambush and assault the residents of Gunung Sahilan. During the clash, huts and rubber plantations of the residents were
destroyed, 15 people were injured and 85 motorbikes were damaged, the NGOs said.
In August 2012, a dispute mediation meeting was held on Pulau Rapat, in an attempt to solve a land conflict between local communities and
APRIL's subsidiary PT Sumatera Riang Lestari (PT SRL). The conflict has been ongoing since 2007, when PT SRL arrived on the island. However, in
June 2013 the indigenous Akit people still complained of lack of access to their ancestral lands.

Environmental issues
D efo restatio n Extensive deforestation by APRIL suppliers has been documented, much of which in High Conservation Value (HCV) areas. According
to maps produced by Eyes on the Forest (EoF), APRIL has access to pulpwood supply concessions covering more than 10% of Riau province's
landmass (940,000 hectares). In 2013, Greenpeace reported that government data revealed that 60% of the fibre supply to APRIL's Riau Andalan Pulp
& Paper (RAPP) pulp mill in Indonesia was from rainforest wood. In 2012, EoF analysed satellite images and estimated that APRIL suppliers had cleared
at least 140,000 hectares of natural forests between 2008 and 2011 in Riau, which corresponds to more than a quarter of all forest loss in that province.
APRIL claims to plant 150 million trees every year, but these industrial plantation trees are mostly planted after clearing precious rainforests to
establish the pulp plantations. Below are some examples of ongoing deforestation by APRIL and its suppliers:

Clearing of protected areas, HCV Forests and peat land on Pulau Padang, Sumatra,
Burning forest on Pulau Rupat, Sumatra and clearing of national protected areas, protected deap peat areas and protected ramin trees,
Clearcutting by the APRIL supplier PT Triomas Forestry in the carbon-rich peatlands of the Kampar Peninsula (Riau, Sumatra), in April 2014, and
construction of an ecologically devastating logging road that split Kampar peninsula's peat ecosystem in half,
Clearing of HCV forest in Tana Tidung, North Kalimantan by APRIL subsidiary PT Adindo Hutani Lestari, as revealed in a May 2014 report by WWF
and other NGOs.

Due to its role in the deforestation of Indonesian rainforests, UPM-Kymmene (2009) and Fuji Xerox (2011) have cancelled their contracts with APRIL. In
January 2014, the World Business Council for Sustainable Development (WBCSD), put APRIL's membership on probation because it did not adhere to
its membership principles.

G reen Ho u se G as em issio ns and Fo rest Fires APRIL has many plantations located in deep peat areas. In order to exploit these, the peat are
drained, which causes it to decompose and emit large amounts of green house gases. By the Indonesian government's own calculations, peat land is
responsible for almost 40% of the country's total emissions. As it decomposes, the peat subsides, increasing the chances of flooding. A study released
by the University of Helsinki shows that APRIL's Acacia plantations on peatland in Sumatra release around 80 tons of carbon dioxide per hectare per
year.

The dry peat is also very susceptible to fire, which is then hard to extinguish. Despite APRIL's "no fire" policy, based on NASA Modis Fire monitoring, in
the period of 13-19 February 2014, Eyes on the Forest identified 891 fire hotspots inside APRIL affiliated companies' concessions.

Human rights
In April 2014, Eyes on the Forest documented apparent child labor at the timber plantation of PT Triomas (an APRIL supplier), in violation of national
legislation and international standards.

Other issues
A PRIL's insu fficient Su stainabl e Fo rest Managem ent Po l icy In January 2014, APRIL published its Sustainable Forest Management Policy
(SFMP), an 'evolution' from its 2005 High Conservation Value Commitment. With the SFMP, which applies to APRIL and its suppliers, the company
commits to source only from non-HCV forests, to implement a moratorium on concessions where a HCV assessment has not been completed, to end
establishing plantations by the end of 2014 and to source exclusively from plantations by 2019. It also commits to respect the law, to respect FPIC
procedures and to resolve social conflicts in a fair and transparent way. Unfortunately, APRIL has a history of setting artificial targets to end its role in
deforestation (Greenpeace, 2015).

Since January 2014, NGOs have reported that APRIL wood suppliers continued natural forest clearance and development of carbon rich peatlands in
Riau and Kalimantan, in violation of its commitments. By the end of 2014, none of APRIL's concessions had completed a HCV assessment that
complied with the Indonesian Toolkit and that had been peer reviewed by the HCV network.

In December 2014, KPMG published an auditing report on the implementation of APRIL's SFMP. Based on this, APRIL's SAC has made several
recommendations to the company.

Lack o f credibl e certificatio n In 2010 SmartWood, an independent forest management certifier, suspended the interim FSC certification of APRIL
pulp products. Among other things, it found APRIL had converted High Conservation Value Forests, including peatlands, and failed to resolve conflicts
with communities.

APRIL claims a number of other certifications, but it has no serious certification on responsible forest management. Its PEFC certification is only for the
Chain of Custody, which means its plantations are not certified under this scheme.

The legality of its PHPL/SVLK certification is questionable, since some of the certified companies have been involved in a corruption case in which they
obtained concessions by bribing district and provincial leaders.

Co rru ptio n in o btaining co ncessio ns In March 2014, the former governor of Indonesia's Riau province was sentenced to 14 years in prison for
illegally issuing logging permits in Riau. According to prosecutors, the illegal permits were given to nine companies operating in Riau, all suppliers of
either Indah Kiat Pulp and Paper (IKPP) or Riau Andalan Pulp and Paper (RAPP). However, so far (March 2014) none of the companies involved had
been charged and the government has yet to revoke the illegally issued permits. In 2011 the newly established Judicial Mafia Eradication Task Force
had already sent four government officers to jail over the same corruption charges.

In late 2010, while a two-year moratorium on new forest concessions had already been announced by the Indonesian President, APRIL and its
competitor APP obtained 17 new licenses to drain peat soil and clear natural forest.

Governance

Updates
APRIL's tax avoidance linked to deforestation and banks
Nov 24 2017
The 'Paradise Papers', 13.4 million files leaked from offshore law firm Appleby, demonstrate how global corporations move money to tax havens to
avoid taxes and other government regulations. Early November, the International Consortium of Investigative Journalist (ICIJ) published a report
based on the Paradise Papers that analyzes Asia Pacific Resources International (APRIL) and its lenders, leading to more questions about whether
banks follow their own sustainability policies and how global corporations may use tax engineering to increase funds available for deforestation.

These questions come as an APRIL subsidiary (PT RAPP), as reported by Bloomberg, seeks a potential USD 500 million loan.

On November 24, 30 Indonesian NGOs urged APRIL's financiers to not support APRIL and to disengage from any existing support or investment.

See here for the full news article.

ABN AMRO lending to APRIL despite own commitment

Jan 11 2017
We understand that ABN AMRO was involved in May 2016 in providing a syndicated loan to APRIL for USD800 million, together with a number of other
banks based in China, Taiwan, Malaysia, UAE and Dubai. This is despite the bank having informed Greenpeace in March 2015 that they would give no
new loans to APRIL until the company had stopped deforestation and proved that it can work sustainably (see earlier updates). Meanwhile
Greenpeace and WWF last month walked away from APRIL's Stakeholder Advisory Committee, while Indonesian groups Jikalahari and JMGR have
written to both ABN AMRO and Credit Suisse raising concerns that APRIL is failing to implement its recent sustainability policy.

Two APRIL super concessions have been frozen

Apr 14 2016
Two APRIL super concessions have been frozen by the Environmental and Forests Ministry because of their involvement in the forest and peat fires.
Read more here and here.

New Sustainable Forest Management Policy

Jun 8 2015
APRIL has announced a new Sustainable Forest Management Policy which includes an immediate moratorium on logging in natural forests. The move
comes after an intensive campaign by a group of environmental organisations, focused on pressuring both the company and its financiers to address
the company's long standing social and environmental conflicts. Read more here.

Credit Suisse put future finance for APRIL under review

Apr 24 2015
In response to questions from representatives of the Bruno Manser Fund, Bank Track and Greenpeace, Credit Suisse's Chief Risk Officer confirmed the
bank has engaged with APRIL and has placed future finance for the company under review.
The minutes state: "Mr. Jo Oechslin [the Chief Risk Officer] expressed his deep concern and applauded the courage and commitment of the visitors,
who had come all the way from Indonesia, in their battle for their rights. It was correct that CS had received a funding request from APRIL in 2013 and
had given a positive response along with a series of conditions. Progress was subsequently made. APRIL had had its operations certified, had improved
its internal policies and processes and formed an independent committee together with NGO representatives. Admittedly, APRIL had subsequently
made mistakes which had also been discussed in detail with CS representatives. Since that time, no transactions with APRIL had been assessed or
executed, and Mr. Oechslin gave his assurance that no future transactions would be conducted with APRIL in the future without his personal
involvement and explicit approval."

First Santander and then ABN Amro refuse to renew loans to APRIL
Mar 9 2015
ABN AMRO will not provide APRIL with new loans until the Indonesian pulp and paper company stops clearing rainforests and can prove that it is
operating in a sustainable way. The bank has also called on APRIL to immediately stop the destruction of Indonesian rainforests. ABN AMRO
communicated this decision to Greenpeace Netherlands last Friday, March 6th. At the same time it posted a declaration on its website on its dedication
to nature conservation. The bank's move follows a similar announcement from the Spanish bank Santander. On February 25th, Santander made a
public statement in which it said that it had "decided to not renew the current funding to APRIL and will not be extending further funding at this
stage". ABN AMRO's move comes after months of negotiations led by Greenpeace and supported by Banktrack and the Environmental Paper Network.
ABN AMRO has now declared it will continue talks with the NGOs in order to further improve its policies to ensure that it will no longer finance
rainforest destruction in the future.

Financiers
Note: Santander and ABN AMRO both committed in March 2015 not to provide new loans to APRIL until it had addressed its involvement in
deforestation. Shortly afterwards, Credit Suisse announced it had placed its funding under review. In May 2016 it emerged ABN AMRO had resumed
lending to APRIL. See the Updates section for more details.
B anks

ABN AMRO Netherlands profile Details ▼

Debt – corporate loan USD 53 million 4 May 2016 - 5 September 2023

The bank participated in a syndicated loan of USD 800 million, composed for three tranches (USD 540 million, USD 160 million, USD 100 million).
source: Bloomberg terminal

Debt – corporate loan USD 50 million 25 April 2014

source: Reuters China (25 April 2014)

Debt – corporate loan USD 500 million 2011

syndicated loan, other banks unknown, interest rate LIBOR + 4.0%, maturity unknown
source: Greenpeace/Profundo (March 2012)

Debt – corporate loan USD 600 million December 2011

Syndicated structured pre-export finance
source: Trade Finance Magazine (7 March 2012)

Debt – corporate loan USD 100 million November 2011

syndicated loan coordinated together with WestLB, worth in total USD 200 million. Other banks involved are not known
source: Greenpeace/Profundo (March 2012)

Agricultural Bank of China China profile Details ▼

Debt – project finance RMB 1.8 billion November 2008

syndicated 10 year project finance loan of in total RMB 7.5 billion, to construct one of the world's largest single pulp lines
source: APRIL (12 January 2009)

Bank BNI Details ▼

Debt – corporate loan USD 150 million 2005

outstanding credit to APRIL and its subsidiaries
source: Jikalahari/Profundo (24 October 2005)

Bank Mandiri Indonesia profile Details ▼

Debt – corporate loan USD 471.26 million 2005

outstanding credit to APRIL and its subsidiaries
source: Jikalahari/Profundo (24 October 2005)

Bank of China China profile Details ▼

Debt – corporate loan USD 53 million 4 May 2016 - 5 September 2023

The bank participated in a syndicated loan of USD 800 million, composed for three tranches (USD 540 million, USD 160 million, USD 100 million).
source: Bloomberg terminal

Debt – corporate loan USD 200 million 15 August 2013

part of a syndicated loan of in total USD 1 billion
source: Reuters China (15 August 2013)

Debt – project finance RMB 1.8 billion November 2008

syndicated 10 year project finance loan of in total RMB 7.5 billion, to construct one of the world's largest single pulp lines
source: APRIL (12 January 2009)

Bank of Communications China profile Details ▼

Debt – corporate loan USD 53 million 4 May 2016 - 5 September 2023

The bank participated in a syndicated loan of USD 800 million, composed for three tranches (USD 540 million, USD 160 million, USD 100 million)
source: Bloomberg terminal

Bank of Taiwan Details ▼

Debt – corporate loan USD 15 million 25 April 2014

source: Reuters China (25 April 2014)

CITIC Industrial Bank Details ▼

Debt – corporate loan USD 53 million 4 May 2016 - 5 September 2023

The bank participated in a syndicated loan of USD 800 million, composed for three tranches (USD 540 million, USD 160 million, USD 100 million).
source: Bloomberg terminal

Debt – corporate loan USD 20 million 25 April 2014

source: Reuters China (25 April 2014)
Debt – corporate loan USD 40 million 15 August 2013
part of a syndicated loan of in total USD 1 billion
source: Reuters China (15 August 2013)

Debt – corporate loan USD 600 million December 2011

US$ 600 million (total loan - Syndicated structured pre-export finance

source: Trade Finance Magazine (7 March 2012)

Cathay United Bank Taiwan, Republic of China profile Details ▼

Debt – corporate loan USD 53 million 4 May 2016 - 5 September 2023

The bank participated in a syndicated loan of USD 800 million, composed for three tranches (USD 540 million, USD 160 million, USD 100 million).
source: Bloomberg terminal

Debt – corporate loan USD 50 million 25 April 2014

source: Reuters China (25 April 2014)

Debt – corporate loan USD 50 million 15 August 2013

part of a syndicated loan of in total USD 1 billion
source: Reuters China (15 August 2013)

Chang Hwa Bank Details ▼

Debt – corporate loan USD 30 million 15 August 2013

part of a syndicated loan of in total USD 1 billion
source: Reuters China (15 August 2013)

China Construction Bank China profile Details ▼

Debt – project finance RMB 1.8 billion November 2008

syndicated 10 year project finance loan of in total RMB 7.5 billion, to construct one of the world's largest single pulp lines
source: APRIL (12 January 2009)

China Development Bank Details ▼

Debt – corporate loan USD 200 million 15 August 2013

part of a syndicated loan of in total USD 1 billion
source: Reuters China (15 August 2013)

Debt – corporate loan USD 600 million December 2011

US$ 600 million (total loan) - Syndicated structured pre-export finance
source: Trade Finance Magazine (7 March 2012)

Credit Suisse Group Switzerland profile Details ▼

Debt – corporate loan USD 50 million 15 August 2013

part of a syndicated loan of in total USD 1 billion
source: Global Capital (20 May 2013) and Reuters China (15-08-2013)

E Sun Commercial Bank Taiwan, Republic of China profile Details ▼

Debt – corporate loan USD 53 million 4 May 2016 - 5 September 2023

The bank participated in a syndicated loan of USD 800 million, composed for three tranches (USD 540 million, USD 160 million, USD 100 million).
source: Bloomberg terminal

Uncategorised

Emirates Bank International Details ▼

Debt – corporate loan USD 53 million 4 May 2016 - 5 September 2023

The bank participated in a syndicated loan of USD 800 million, composed for three tranches (USD 540 million, USD 160 million, USD 100 million).
source: Bloomberg terminal

Far Eastern International Bank Details ▼

Debt – corporate loan USD 53 million 4 May 2016 - 5 September 2023

The bank participated in a syndicated loan of USD 800 million, composed for three tranches (USD 540 million, USD 160 million, USD 100 million).
source: Bloomberg terminal

First Gulf Bank Details ▼

Debt – corporate loan USD 53 million 4 May 2016 - 5 September 2023

The bank participated in a syndicated loan of USD 800 million, composed for three tranches (USD 540 million, USD 160 million, USD 100 million).
source: Bloomberg terminal

Approached, interested USD 50 million

source: Reuters China (25 April 2014)
Fubon Financial Holdings Taiwan, Republic of China profile Details ▼

Debt – corporate loan USD 40 million 15 August 2013

part of a syndicated loan of in total USD 1 billion

source: Reuters China (15 August 2013)

Hua Nan Bank Details ▼

Debt – corporate loan USD 53 million 4 May 2016 - 5 September 2023

The bank participated in a syndicated loan of USD 800 million, composed for three tranches (USD 540 million, USD 160 million, USD 100 million).
source: Bloomberg terminal

Industrial Bank of Taiwan Details ▼

Debt – corporate loan USD 10 million 25 April 2014

source: Reuters China (25 April 2014)

Industrial and Commercial Bank of China (ICBC) China profile Details ▼

Debt – corporate loan USD 100 million 15 August 2013

part of a syndicated loan of in total USD 1 billion
source: Reuters China (15 August 2013)

Debt – project finance RMB 1.8 billion November 2008

syndicated 10 year project finance loan of in total RMB 7.5 billion, to construct one of the world's largest single pulp lines
source: APRIL (12 January 2009)

Land Bank of Taiwan Details ▼

Debt – corporate loan USD 53 million 4 May 2016 - 5 September 2023

The bank participated in a syndicated loan of USD 800 million, composed for three tranches (USD 540 million, USD 160 million, USD 100 million).
source: Bloomberg terminal

Debt – corporate loan USD 10 million 25 April 2014

part of a synidcated loan of in total USD 265 million
source: Reuters China (25 April 2014)

Maybank Details ▼

Debt – corporate loan USD 53 million 4 May 2016 - 5 September 2023

The bank participated in a syndicated loan of USD 800 million, composed for three tranches (USD 540 million, USD 160 million, USD 100 million).
source: Bloomberg terminal

Mega Bank Details ▼

Debt – corporate loan USD 30 million 15 August 2013

part of a syndicated loan of in total USD 1 billion
source: Reuters China (15 August 2013)

Ping An Bank Co Ltd China profile Details ▼

Debt – corporate loan USD 130 million

part of a syndicated loan of in total USD 1 billion
source: Reuters China (15 August 2013)

Santander Spain profile Details ▼

Debt – corporate loan USD 50 million 25 April 2014

source: Reuters China (25 April 2014)

Debt – corporate loan USD 600 million December 2011

Syndicated structured pre-export finance
source: Trade Finance Magazine (7 March 2012)

Shanghai Pudong Development Bank Details ▼

Debt – corporate loan USD 53 million 4 May 2016 - 5 September 2023

The bank participated in a syndicated loan of USD 800 million, composed for three tranches (USD 540 million, USD 160 million, USD 100 million).
source: Bloomberg terminal

Taishin International Bank Details ▼

Debt – corporate loan USD 53 million 4 May 2016 - 5 September 2023

The bank participated in a syndicated loan of USD 800 million, composed for three tranches (USD 540 million, USD 160 million, USD 100 million).
source: Bloomberg terminal
 Debt – corporate loan USD 20 million 15 August 2013
part of a syndicated loan of in total USD 1 billion
source: Reuters China (15 August 2013)

Taiwan Business Bank Details ▼

Debt – corporate loan USD 10 million 25 April 2014

source: Reuters China (25 April 2014)

Debt – corporate loan USD 20 million 15 August 2013

part of a syndicated loan of in total USD 1 billion
source: Reuters China (15 August 2013)

Taiwan Cooperative Bank Details ▼

Debt – corporate loan USD 50 million 15 August 2013

part of a syndicated loan of in total USD 1 billion
source: Reuters China (15 August 2013)

WestLB AG Details ▼

Debt – corporate loan USD 600 million December 2011

Syndicated structured pre-export finance
source: Trade Finance Magazine (7 March 2012)

Debt – corporate loan USD 100 million November 2011

syndicated loan coordinated together with ABN Amro, worth in total USD 200 million. Other banks involved are not known.
source: Greenpeace/Profundo (March 2012)

Wing Lung Bank Ltd Hong Kong profile Details ▼

Debt – corporate loan USD 53 million 4 May 2016 - 5 September 2023

The bank participated in a syndicated loan of USD 800 million, composed for three tranches (USD 540 million, USD 160 million, USD 100 million).
source: Bloomberg terminal

Debt – corporate loan USD 20 million 15 August 2013

part of a syndicated loan of in total USD 1 billion
source: Reuters China (15 August 2013)

So u rces:

Reuters China (25 April 2014)

Reuters China (15 August 2013)

Global Capital (20 May 2013)

Trade Finance Magazine (7 March 2012)

Greenpeace/Profundo (March 2012)

APRIL (12 January 2009)

Jikalahari/Profundo (24 October 2005)