EoF (Jun 2007) PT Arara Abadi, APP subsidiary, clearcut natural forest in Kampar Peninsula

EoF Investigative Report / 04 June 2007

 Eyes on the Forest  investigation in December 2006 has found that about  4,500 hectares of natural forest in Kampar Peninsula block had been illegally clearcut in concession of PT Arara Abadi (AA), subsidiary of Sinar Mas Group, associated with Asia Pulp & Paper (APP). The logging in this concession started in 2005. PT Arara Abadi and contractor PT Sinar Hasta Lestari clearcut natural forest in this concession, despite EoF coalition has not found any company received and sourced felled timber for the industrial timber plantation (HTI) development in such a concession.    

Based upon the field observation, EoF analyzed the alleged involvement of PT Indah Kiat Pulp and Paper (PT IKPP) mill, associated to APP in Riau, in receiving and sourcing timber from PT Arara Abadi.

EoF could not find the plan to develop HTI by PT Arara Abadi in this concession, despite around 3,000 ha has been planted acacia and other 1,500 ha has already been clearcut by September 2007. In this concession, EoF has found PT Arara Abadi ha has planted acacia aging 4 months.    Eyes on the Forest has not found yet natural forest logging license for PT Arara Abadi to develop its acacia plantation or HTI development.

The official data released by Riau Province Forestry Service 2005-2006 do not specify any HTI concession in the location where EoF found, but:     

• Official data by the Ministry of Forestry in 2005 (http://www.dephut.go.id ) say that concession where acacia plantation developed by PT Arara Abadi is concession held by PT Triomas FDI which has selective logging one (IUPHHK-HA or  HPH).

• This HPH license is issued based on the Minister of Forestry Decree Number 109/Menhut-IV/1998 dated 28 March 1998. The size of the concession where logging is occurring is 97,500 hectares.    

Through its response to this EoF’s investigation (May 2007), APP failed to specify any legality basis for logging operation that conducted by PT Arara Abadi, showing that APP and its partner allegedly conducted illegal logging in Kampar Peninsula forest block.     

EoF Investigation in December 2006 has also found logging road development conducted by PT Arara Abadi through  acacia plantation area of PT Uniseraya. It is estimated that the logging road development has reached a 3-km length from log pound that used 3 units of excavator.