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APKI Supports 100% Adherence To Indonesian National Standards
APKI Supports 100% Adherence To Indonesian National Standards
APKI Supports 100% Adherence To Indonesian National Standards
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
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