http://www.atimes.com/atimes/Southeast_Asia/NB23Ae03.html

Feb 23, 2012


Indonesia pays for US bargains
By Charundi Panagoda 


WASHINGTON - The survival of Sumatra's tigers, elephants, orangutans, rhinos, 
as well as indigenous communities, is threatened by the "world's fastest 
deforestation rate", caused by the pulp and paper industry, according to the 
World Wildlife Fund (WWF). 

WWF in a recent report named Indonesian-based Asia Pulp & Paper (APP) as 
"responsible for more forest destruction in Sumatra than any other single 
company". APP and competitor Asia Pacific Resources International Ltd (APRIL) 
have consumed the majority of the wood harvested from commercial forest 
clearances and agriculture conversion. 

"In central Sumatra, the impact of APP's operations on wildlife has been 
devastating. The company's forest clearing in Riau Province has been driving 
Sumatran elephants and tigers toward local extinction," the report said. 

The companies have also begun clearing peat swamp forests. According to 
Indonesian Ministry of Forestry estimates, deforestation associated with peat 
decomposition and burning totals 1.2 gigatonnes of carbon emissions per year, 
making Indonesia the world's third-largest greenhouse gas emitter. 

"Products made with APP fiber linked to forest destruction are flooding the US 
market and landing in grocery stores, other retail chains, restaurants, hotels, 
schools and municipalities in the form of toilet tissue, paper towels, copier 
paper, stationery, paper bags and paper-based packaging," WWF reported. 

Two of APP's products identified in the US are Paseo and Livi tissues. APP 
products are distributed and marketed in North America by a variety of 
subsidiaries and affiliates including Solaris Paper, Mercury Paper and 
Papermax. 

Despite concerns raised by environmental groups, APP claims to be "committed to 
being socially, environmentally and economically sustainable throughout its 
operations". When Indonesia's Eyes on the Forest released a report on APP 
clearing Sumatra's Senepis Tiger Sanctuary, the company fired back saying the 
allegations were "clearly false". 

Philip Rundle, chief executive of Oasis Brands, which market Paseo and Livi, 
wrote in a letter that their products are "100 percent sustainable. [made from] 
plantation-grown, rapidly renewable fiber supplied by APP." 

"It's plainly ridiculous, profoundly untrue to claim that anything APP produces 
is environmentally sustainable. To me, it borders on false labeling," Andrea 
Johnson, director of forest campaigns for the Environmental Investigation 
Agency, told IPS. "There are maps, evidence. It's incontrovertible that some of 
the practices APP engages in are not sustainable." 

APP is engaging in a "very strong campaign" to "greenwash" their activities and 
to assert they are actually doing everything legally, Johnson said. APP's 
declarations include asserting that only "degraded" land is being cleared, that 
only a little of Indonesian land is allocated for mills, and emphasizing APP's 
donations to environmental foundations. 

What APP calls "degraded land" is what WWF calls "tiger habitat", WWF forest 
program manager Linda Kramme told IPS. She believes many of the sustainability 
statements made by APP and Oasis are misleading. Suggesting APP is only 
impacting a small amount of Indonesia is like saying the recent Gulf of Mexico 
oil spill only impacted a small amount of the US, she said. 

"[WWF] believes they are mischaracterizing their practices happening on the 
ground. Many U.S. customers and companies don't have the ability to go to 
Indonesia and see what's happening, so it can be easy for them to read 
materials that APP and companies that market their products like Oasis say - 
that they have different certification, that they are doing things with 
conservation. But our teams for two decades have seen impacts on ground and we 
see and obligation to raise the questions and to raise the facts," she said. 

WWF started engaging with APP in 2001 to introduce the company to long-term 
sustainability practices. However, WWF cut off ties with APP after the company 
broke its promises to stop using natural forest fiber despite signing a letter 
of intent. 

Legally, bills such as the Lacey Act in the US in principle should create 
various incentives not to buy illegally logged products, Johnson said. However, 
greenwashing campaigns and complicated supply chains make prosecution harder. 

"APP has been increasingly using subsidiary companies and resorting to opening 
mills under other names in countries like the US and Canada," Johnson said. 
"It's not that difficult to start another company and put another name on it 
and use the same fiber. You see that tactic increasingly being used by 
companies. I think that structuring on part of the company is very intentional 
in order to make traceability almost impossible, which obviously makes it 
difficult to enforce the law." 

In 2010, APP was affected by the US Commerce Department imposing anti-dumping 
duty orders for certain coated paper imported from Indonesia. "Dumping" is a 
predatory pricing practice in international trade that allows companies to sell 
their imported products at very low prices, driving out the competition. 

"There is an environmental component to the fact that [APP products are] less 
expensive. One of the reasons they can afford lower costs is because they are 
getting fiber illegally [by illegal logging, for example]," Johnson said. "They 
are not engaging in the kind of business practices which cost a little bit more 
if you want to do things legally and that result in lower prices." 

The US can prosecute companies like APP only if the government of the producer 
country has criminal penalties for the same activity. Therefore, it's the 
responsibility of the Indonesian government to effectively implement 
conservation laws, activists say. 

Johnson says a strong case can be made that Indonesia has effectively 
subsidized the pulp and paper industry by not enforcing its own law

[Non-text portions of this message have been removed]



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