FCP PROGRESS REPORT

A P P S TA K E H O L D E R A D V I S O R Y F O R U M
23 March 2018
 FOREST CONSERVATION POLICY

APP Vision 2020

Sustainability
Roadmap

Forest Conservation POLICY POLICY

Policy COMMITMENT 1:
PROTECTING
COMMITMENT 2:
PEATLAND
NATURAL MANAGEMEN
FOREST T

Integrated Sustainable
Forest Management POLICY
COMMITMENT 3:
POLICY
COMMITMENT 4:
Plan SOCIAL GLOBAL
COMMITMENTS SUPPLY
CHAIN

Landscape
Conservation

Desa Makmur
Peduli Api
POLICY COMMITMENT 1
N AT U R A L F O R E S T P R O T E C T I O N
NATURAL FOREST PROTECTION

CHALLENGE

3RD PARTY
DEFORESTATION
 ADDRESSING 3RD PARTY DEFORESTATION

Highlights
Forest • MDA Forest Cover Alert Tool
monitoring • Community-based forest security teams Natural forest
and • SMART Patrol
protection cover changes :
2017

Mitigating • Integrated Fire Management: Prevention, Preparation, Early Detection,

0.1%
Forest fires Improved fire-fighting preparation
• Integrated Forestry and Farming System (IFFS/DMPA) programme
Area affected by fire out
of total concession area
of APP’s 38 suppliers:
Restoration • Permanent sample plots to determine restoration strategy and monitor
inside on-going restoration efforts 2017: 0.01%
concessions • Collaboration with Puslitbang SEKPI (Social and Economy Policy on
Climate Change) in APP suppliers’ concession areas
Human-wildlife
incident within APP’s
• Key species protection – tiger, elephant, orangutan suppliers’ concession
Biodiversity • Research on Ramin and other rare local tree species
areas:
0 since 2013
 RESTORATION STRATEGY
Level of
Degradation Action

Input from expert Light degrade,

Protection
team young schrub

Assessment of Enrichment with:

Area Need to be Medium degraded,
Forest Structure - N species/Ha
restored young schrub
and Composition - N tree/Ha

Heavy degraded,
Re-vegetation
open land , burnt

• Collaboration with Puslitbang SEKPI (Social Economy Climate Change Policy) on assessment
and assistance on ecosystem restoration in APP’s suppliers’ concession areas for the next 5
years.

• Target for restoration and enrichment within APP’s suppliers’ concession area is up to
21,000 hectares in 2018, through assisted natural regeneration, enrichment and
protection.

• USD 4 million budget allocation for restoration initiatives in 2018, including

restoration in riparian areas.
 KEY SPECIES PROTECTION

Distribution Map
Sumatran Tiger
In APP suppliers concession
In Riau

0
Human – tiger
conflict in APP
suppliers’
concession
since 2013
POLICY COMMITMENT 2
P E AT L A N D M A N A G E M E N T
 PROGRESS HIGHLIGHT

2nd LiDAR Mapping

•Data analysis and Digital Terrain Model for 2nd LiDAR mapping have been
completed in all regions.
•Installing Online Water Management Monitoring System (OWMS) across
all suppliers to ensure standardized data on water level and water table.
OWMS

Alternative species development

•11 alternative species planted in trial plot on rewetted area.
•APP established a specialized team in the R&D structure, focusing on
Alternative Species research.
USD
•Investment to date on alternative species research is more than USD
3.5million. 3.5
million

Retirement Area
•Encouraging results in retirement area in Kerumutan
Natural
•Proximity to healthy natural forest enable the case of natural
regeneration in the area. Regene
ration
 Status and lessons learnt of
APP Kerumutan retirement area

Deltares
Jakarta, March 2018
 Kerumutan Landscape

Plantation rezoning and retirement (3000 ha)

• Land use and management within APP concessions is being reassessed on the basis of
scientific insights into impacts on remaining forest and peat carbon stock, as well as long-
term production sustainablity as flood risk increases over time due to land subsidence.

• Full rezoning will start in 2016 on the basis of LiDAR results and field investigations.

•
MUBA Landscape
August 2015: APP announced full and (Sembilang-Berbak NP)
immediate rehabilitation of 2 (4000 ha)
plantation areas on peatland, in
Kerumutan (Riau) and MUBA
(Sumsel), totalling ~7,000 ha.
These areas were recommended by
Deltares because drainage here cause
the greatest risk to remaining swamp
forest
Focus here is on Kerumutan
 Canal Blocking implemented late 2015 / early 2016
All perimeter + retirement canals blocked
at 500m intervals

This retirement area was

selected because entirely
surrounded by forest
2013: most of the plantation area
cleared and planted. But pockets of
forest left and surrounding forest still
looks quite healthy. So conditions for
forest regeneration look good.

Cleared
but not planted
2016: plantation retired and canals
blocked. Area was not harvested as
with higher water levels, natural
forest expected to replace Acacia.

B
A
Block example A
(orthophoto)

Much of the land around

canal flooded
Block example B
(orthophoto)

Canal already largely

overgrown, in less
than a year
2017: Acacia already seen to be dead
in wettest areas, dying elsewhere
 Acacia has died in most areas, new
2017: Acacia already seen to be dead vegetation coming up
in wettest areas, dying elsewhere (helicopter photo)

Acacia still alive in some areas; expected

to die as conditions continue to get wetter
(helicopter photo)
2016 (December): LiDAR data show
that canal water depth after blocking
was mostly less than 0.5m. Water
levels were raised by 0.5-
0.5-1m
Changes in vegetation can be
illustrated best for an area where
2015 and 2016 LiDAR data and
orthophotos are available

1
2
3
 3D view over area of forest and
plantation, 2015 data before blocking
(LiDAR and orthophoto combined)

2015

#1 #2 #3
Plantation Forest Plantation
open canopy,
affected by drainage
 3D view over area of forest and
plantation, 2016 data after blocking
(LiDAR and orthophoto combined)

2016

#1 #2 #3
Plantation Forest Plantation
Acacia has died thriving Acacia has died
 2015, before blocking
#1 #2 #3

Acacia dying
dying,, Forest thriving
thriving,, Acacia dying
dying,,
Natural species already grown by few metres Natural species
coming up fast coming up fast

2016, after blocking

Status:
• Water levels brought up to near the peat surface in wet season, in most of area.
• Water levels expected to rise further as canals rapidly fill up with vegetation,
already within 12 months after blocking.
• Acacia has died in most of the area, due to high water levels. The remaining
Acacia in drier areas is expected to die as water levels rise further.
• New vegetation rapidly invades areas of dead acacia. Species unknown, follow
up ground monitoring needed. But field surveys in the other APP retirement
areas in MUBA shows many different species coming in from nearby forest.
• Remaining forest in and around plantation seen by LiDAR to regrow fast.
Overall lesson learnt:
• Even in peatland plantation areas that were totally cleared of natural vegetation
and forested with Acacia, nature takes over quickly once water levels are raised
and there is no human disturbance (logging, fires, drainage, removal of blocks).
Technical lessons learnt:
• Given limited ground access and other obstacles to monitoring, options of
remote sensing monitoring (satellite, plane, drone) must be maximized
• LiDAR data provide insight in ground topography, canal water levels and
vegetation condition.
POLICY COMMITMENT 3
SOCIAL ENGAGEMENT &
CONFLICT RESOLUTIONS
 SOCIAL CONFLICT RESOLUTION

Social Conflict Typologies

LIMITED APP
5. Illegal 6.
1. Old 2. New INFLUENCE
land Speculator
villages villages
trading

3. 4. 8.
GREATER Customary 7. Non-
Livelihood procedural Overlapping
APP land
INFLUENCE purpose Land Use licenses
(ulayat)

Social Conflict Resolution Stages:

STAGE ONE: STAGE TWO:

Identification Negotiation STAGE THREE: STAGE FOUR:
process, primary process, MOU/agreement MOU
and secondary achievement of signed implementation
data collection initial agreement
 SOCIAL CONFLICT RESOLUTION

Resolved
Conflicts

46%

Unresolved conflicts Resolved 5-8 Resolved 1-4

 REGIONAL SOCIAL WORKING GROUP

o Regional Social Working Group in Riau, Jambi and South

Sumatra are on-going with participation from
NGOs, academics and local government representatives.

o Good progresses in SWGR Jambi – one conflict has been

resolved.

o Each region has different dynamic and what works in one

region does not necessarily work in other regions.
DESA MAKMUR PEDULI API
DESA MAKMUR PEDULI API
POLICY COMMITMENT 4
S U S TA I N A B L E F I B E R S U P P LY
SUPPLIER EVALUATION PROCESS
No deforestation
References: since 2013 (incl.
FSC Controlled Wood, PEFC DDS, RFPPP Policy and FCP Policy
Affiliated co.)

Risk Not
assessment considered

New! Public Stakeholder

consultation 14 days consultation
Rejected

JSC review
and approval

Accepted as
Rejected
supplier
 NEW SUPPLIERS 2017

• In 2017, there are 6 pulpwood suppliers approved by JSC

1. Kelompok Tani Jaya Mandiri – Bangka Belitung
2. Bina Silva Nusa – West Kalimantan
3. Paramitra Mulia Langgeng – Lampung
4. Acacia Forest Industries Shd Bhd – Sabah
5. KTS Logs Marketing Sdn Bhd – Sarawak
6. Sabah Softwood Berhad – Sabah

• All of the above are approved for one time supply only.

• None of the companies above has started supplying to APP mills.

OTHERS:
S TA K E H O L D E R E N G A G E M E N T
P L AT F O R M S A N D G R I E VA N C E
MECHANISM
 ENGAGEMENT PLATFORMS

Platforms for engagement and dialogue with stakeholders:

1. Stakeholder Advisory Forum

2. Regional Social Working Groups

3. Independent Observers platform

4. Focus Group Discussions under the ISFMP process

5. Grievance Mechanism – sustainability@app.co.id

Monitoring the progress of FCP commitments:

1. FCP Progress Reports

2. FCP Monitoring Dashboard

THANK YOU