Pulp mills -PT RAPP and PT IKPP- use more than 50% of woods from natural forests

EoF Press Release / 25 December 2010

Willem Pattinasarany, Coordinator of Indonesian Working Group on Forest Finance (IWGFF) explained about the IWGFF's study on both companies record that shows during 2004-2008, 50% or 8,8 millions M3 of PT IKPP and PT RAPP raw material supplies had been extracted from natural forests and the rest 8.9 millions M3 per year are from Plantation Forests. With this lack of raw material supplies from production forest, the remaining natural forests in Riau are threatened as the potential target of raw material supplier.

Willem added that the option to protect Riau’s forest natural resources from area expansion, logging permit of raw material supplies for pulp and paper industry, especially PT RAPP and PT IKPP in Riau Province is still doubtful. It can be seen from the logging permit on natural forests for PT RAPP and PT IKPP raw material supplies in 2009 reached 54.99% or .622.620,27 M3 for medium and small round timber, and 756.204,28 M3 for 50cm or more round timbers. It’s lesser amount compare to materials provided from production forests which is 45,09 % or 10.331.109,14 M3. It’s also strengthened with the realization of production forest which is only 37.99% per year in Riau Province, indeed showing the slow growth to fulfilling the raw material demands of PT RAPP and PT IKPP.

The concession of Riau’s natural forests as raw material supply for PT RAPP and IKPP also included the 2-4 meters deep of peat forests. The width of 2-4 meters deep of peat forests concession reached 560.554,38 hectares for PT RAPP and 657.040,4 for IKPP. The forests and peat land openings in Riau Province, other than vulnerable to forest fires, is also a proof of the Government inconsistency to ensure the decreasing of carbon emission through Reducing Emissions from Deforestation and forest Degradation (REDD) scheme where forest protection and conservation is the main consent.

To reduce the logging of natural forests as raw material resources, the government needs to take bold actions which are: 

1. Land clearing wood products moratorium for pulp and paper industry as:

An incentive for forest product development to push the company to only plant in the allocated areas for forest products given by the government which is about 6 million hectares.  If they don’t plant it, the government will take over the land.

An incentive for community production forest. The price of pulp and paper raw materials will increase due to moratorium that cause the lack of wood supply.

Incentive for carbon trade and can use the fund to restore Riau’s degraded natural forests.

Incentive for pulpwood import as a solution to overcome the raw material supply problems for pulp and paper industry.

Disincentive for illegal logging. Illegal logging can be controlled because all raw resources woods are from production forests.

2. On the other hand, the government needs to:

Help to overcome tenurial conflicts related with land concession with local community or indigenous people community, who need to get economical benefit through the development of Community Production Forest from the production forest development.

Accelerate infrastructure development to support production forests development as well as open transportation access as the effort to increase local community revenue.

Provide technical and financial assistance for forest farmers/cooperation who is developing community efforts on utilizing forest resources.

Indicate political will and consistent law enforcement to conserve forest resources.

For further info, please contact:

Willem Pattinasarany, Koordinator Indonesian Working Group on Forest Finance (IWGFF)

HP: 0852 8976 9112, willem@nusa.or.id

Note for editors:

Indonesian Working Group on Forest Finance (IWGFF) is a workgroup consisting organizations and individuals who share deep concerns on the economy and financial policy affecting forest conditions, forest industries, environment and community around the forests.


IWGFF is open for governmental organizations, non-governmental organizations, private sectors, donor agencies, and individuals who share the same concerns on economy, finance, and forestry issue. Some of IWGFF members are organizations and individuals involved in economy, forestry and natural resources sectors which are: INFID, WALHI, TELAPAK, Forest Watch Indonesia, CIFOR, WWF, MFP-DFID, and several forestry and financial experts as individual members.

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