apki supports 100% adherence to indonesian national standards
DESCRIPTION
Jakarta-based Asia Pulp & Paper Group (APP), one of the world’s largest pulp and paper producers, joined Indonesia’s leading trade associations and companies involved in exporting wood-based products to pledge its support of and commitment to Indonesia’s national timber legality and traceability standards. The unified industry group also called on countries worldwide to adopt national procurement policies recognizing and endorsing Indonesian standards.“We are here today representing the Indonesia Pulp and Paper Association (APKI) and its membership across Indonesia with a simple message and call to action: APKI members are jointly committed to 100 percent adherence to Indonesia’s National Standard for wood legality. We want to send a message to the world that we will not tolerate, nor will we accept illegal wood entering the Indonesian pulp and paper supply chain,” said Ms. Aida Greenbury, APP Managing Director.Indonesia’s chain of custody (CoC) certification program, enacted in 2009, establishes strict wood legality and verification systems (Sistem Verifikasi Legalitas Kayu/SVLK) to ensure wood products exported from the country are legal and traceable to verified points of origin. SVLK certification is designed to ensure that the industry will only receive and process timber from legal sources according to the regulations of Indonesia, covering aspects of licensing, harvesting, transporting and processing for the industry. SVLK is an important step in the effort to achieve full Sustainable Forest Management (SFM) certification.Ms. Greenbury, speaking at a forum in Jakarta Thursday (March 10), said foreign countries importing wood-based products from Indonesia should have complete confidence that Indonesian products certified under SVLK guidelines adhere to the highest standards for wood legality and support SFM principles. These standards should be accepted and considered equal to those legal requirements created by countries with the intention to protect their own natural forests and mandate sustainable plantation forestry practices. “Based on these principles, we must be granted the opportunity to engage in free and fair trade with countries around the world, with governments respecting our sovereign right to develop a healthy pulp and paper industry for the benefit of our citizens. We need a level playing field, with fair trade granted on a reciprocal basis and where governments refrain from passing legislation that effectively restricts Indonesia’s right and opportunity to compete,” said Ms. Greenbury.A vibrant and growing pulp and paper industry is essential to Indonesia’s emerging economy. Forestry and related industries contribute approximately $18 billion of Indonesia’s GDP, or 3.3 percent. That’s more than triple the average across Asian countries of 1.1 percent. The pulp and paper industry, which is estimated to be responsible for approximately 250,000 of Indonesia’s 600,000 jobs in forestry and related industries, also generates an estimated half of the US$7 billion annually that the forestry sector contributes to state income. “The Government of Indonesia has a strong commitment to help reduce poverty as part of its support for UN Millennium Development Goals. And the pulp and paper industry plays a critically important role in that effort, both through direct job creation as well as community development and empowerment programs,” Ms. Greenbury said. “APKI members across Indonesia work in partnership with a wide range of stakeholders, government leaders, local NGOs and community leaders to help create a positive environment to help advance our efforts to attain SFM certification.”At the forum attended by a wide range of public and private forest industry stakeholders from Indonesia, the European Union, the US, Australia and Japan, Ms. Greenbury outlined APP’s path to 100 percent certification of its pulpwood supply, CoC and Legal Origin Verification and Traceability systems. She alsTRANSCRIPT
APKI Supports 100% Adherence to Indonesian National StandardsIndonesian National Standards
Legality and Free Trade Critical to Realizing Indonesia’s Pulp and Paper Opportunity
Aida Greenbury, Managing Director
Asia Pulp & Paper Group (APP)
10 March 2011
Achieving SFM in Indonesia
National Standardsfor Legality
Reciprocal Free and Fair Trade
Sustainable ForestSustainable Forest
Social and Economic Potential
Sustainable Forest Management
(SFM) and REDD
Sustainable Forest Management
(SFM) and REDD
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 and paper industry responsible for nearly 250 000 of• Pulp 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
15
20
25
M3 per Hectare each Yr
0
5
10
15
Brazil ‐ Hardwood 10 yr cycle
Indonesia ‐Hardwood 10 yr
cycle
China ‐ Hardwood 30 yr cycle
Chile ‐ Hardwood 35 yr cycle
North American ‐Softwood 65 yr
cycle
Europe ‐ Softwood 65 yr cycle
4
Growth in Asia Paper Demand
Asia‐Pacific Paper Manufacturing Countries Millions of Tons 2008/9
020406080
6
Key Matrix: Indonesian Paper & Board Sector
8.0
10.0
12.0
14.0
Capacity
Million Ton / Year
0.0
2.0
4.0
6.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (e)
Production
Import
Export
Consumption
Key Matrix: Indonesia Pulp Sector
5.0
6.0
7.0
8.0
9.0
Capacity
Million Ton / Year
0.0
1.0
2.0
3.0
4.0
5.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (e)
Production
Import
Export
Consumption
Indonesia Pulp & Paper Industry 2008/9
60
70
80
90
100
Indonesia
0
10
20
30
40
50
Production volume Tons of Paper
CO2 Tons from Paper Production
Total National Forestry Millions of Hectares
Pulp and Paper Plantation forestry Millions of Hectares
9
Asia‐Pacific Recycled Waste Paper Imports 2008/9
20
25
30
From Own Market
0
5
10
15
To China To Japan To The Republic Korea
To Indonesia
From Other Asia
From Europe
From North America
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
60
70
80
90
100
0‐10% standard threshold for waste material consumption
0
10
20
30
40
50
2005 2006 2007 2008 2009 2010 2015
Mixed Wood Residues (%)
Sustainable Plantation Wood (%)
Source: APP Quality Assurance Division
Chronology of CoC Commitment
National Law & International Regulations
Procurement Policy
CoC/LoV LEI Audit 2003
CoC/LoV LEI Audit by SGS 2005/06
Annual CoC/LoVLEI Audit & TLTV Audit by
SGS
CoC/LoV LEI Audit & TLTV‐VLO/VLC SGS Audit 2010
Continual Improvement
Result:
• Spatial Planning
Result:
CoC System
Major Improvement:
• Security Capacity
Major Improvement:
• Radar Mapping &
Major Improvement:
• First Certified TLTV‐VLC in the region:
Result:
• GAPs and
Legality Voluntary & Beyond Compliance
14
Policy
• Supplier Compliance
• Legality Documentation
• Environmental
• Human Rights
• Social
Implementation Building
• Community Awareness
• Multi‐stakeholder Participation
• Radar Mapping & Planning
• Digital Camera ID
• On Line Tracking System
• GPL System
Planning: Data/Procedure Incorporation & Implementation
• Digital Camera ID: Replication
• On Line Tracking System: Expansion
• GPL System: Manual & Implementation Improvement
• Wet Land Operation: Weigh Bridge / Weigh Scale
• Plantation planning, man power, health & safety compliance
• Set aside area monitoring
• Concession inventory methodology
• Stakeholder consultation
the region: 556,318 hectares.
• In total 1,786,365 hectares of independently verified forest areas.
CARs closing
• Scope expansion
• Logo use is being planned.
Pulpwood Supplier Certification Progress
1.5
2
2.5
3
LEI SFM Certification
MHa
0
0.5
1
1.5
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
LEI SFM Certification
TLTV
LEI CoC Audit
PHPL MoF
Year
15
APP Sustainability Roadmap: Vision 2020
71% of APP's pulpwood supplies are voluntarily audited to meet Chain of Custody (CoC) and verification of legal origin of fiber (LoV)
Today
100% of APP's pulpwood supplies are legal under Indonesian law
Tomorrow
100% of APP's pulpwood supplies will remain legal by law
100% of APP's pulpwood supplies will
2015verification of legal origin of fiber (LoV) standards set by SGS TLTV‐VLO/VLC & the Indonesian Ecolabelling Institute (LEI)
Source: APP
23% of APP's pulpwood supplies have passed voluntary audits or been certified as SFM forests by LEI
52% of APP's pulpwood supplies meet mandatory Sustainable Forest Management (SFM) standards set by Indonesian government with multi‐ stakeholder consultations
be CoC and LoV compliant by 2015
100% of APP's pulpwood supplies will
be SFM compliant by 2015
100% of APP's pulpwood supplies will
be LEI‐SFM compliant by 2020
16
Rio +20: Act now to Save The Forests
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