Indonesian Rainforest Destroyer Asia Pulp and Paper Loses More Contracts

Press release - 2011-11-07
Jakarta – Greenpeace has called on Indonesian company Asia Pulp and Paper (APP) to commit to ending its destruction of the country's rainforests, in response to news that yet more companies around the world are cutting ties with the paper giant.

Greenpeace also warned that APP's continued forest destruction threatened the Indonesian President's own commitment to dedicate his remaining time in office to saving Indonesia's forest.

"Asia Pulp and Paper is bad for Indonesia's forests and bad for Indonesia's reputation, and is even threatening the Indonesian President's own commitment to save the forests", said Bustar Maitar, Greenpeace South East Asia forests campaigner. "APP must immediately commit to stop destroying rainforests".

The companies that recently announced they will stop buying from APP, include:

  • Hasbro, one of the world's largest toy manufacturers;
  • The Warehouse, New Zealand's largest group of department stores;
  • Delhaize, the second largest retailer in Belgium and owner of Food Lion in the US;
  • Metcash, one of Australia's largest supermarket chains;
  • Montblanc, the famous luxury pen maker;
  • Tchibo, the world's fifth largest coffee roaster;
  • Cartamundi, the world's leading maker of playing cards.

Banking group ING has also ceased providing banking services for an APP subsidiary this year, and have refused to do business with APP because the pulp and paper company is in contravention of the bank's forestry policy.

These companies have joined other large well-known businesses that have excluded APP from their supply chains. These include the stationary giant Staples which concluded that APP is a 'great peril to our brand' as well global consumer goods companies such as Kraft, Nestle and Unilever.

International retailers such as Carrefour, Auchan, Metro Group and Tesco have all dropped APP from their own-brand products in the last two years, and sportswear giant Adidas has stopped business with APP too.

Recently, Mattel, the toy company behind Barbie, announced that they were cutting ties with APP and introducing new policies to remove deforestation from their supply chain.

On October 28th, the Dutch Advertising Code Commission ruled that APP's TV and paper adverts, which attempt to position APP as a company that cares about the environment, are misleading the public.

Indonesia is the first developing country to set ambitious targets to reduce deforestation, greenhouse gas emissions and to tackle climate change. But the President's plans continue to be undermined by APP activities. Over the last month, Greenpeace's "tiger eye" campaign found extensive clearance of rainforests inside APP concessions in Sumatra.  Areas being cleared include those mapped as habitat for the endangered Sumatran tiger and peatland areas more than three metres deep. Land clearance fires were also identified inside two APP concession areas. Both the development of deep peat areas and the use of fire to clear land are prohibited under Indonesian regulations.

Earlier this year, APP's sister company, Golden Agri Resources, introduced new policies to tackle deforestation. It has since started to win back the customers it had lost in the international market place, including Nestle.

"APP must follow GAR's lead and immediately commit to an end to deforestation", concluded Maitar.

Greenpeace is an independent global campaigning organisation that acts to change attitudes and behaviour, to protect and conserve the environment and to promote peace.