BANKS DODGY DEALS CAMPAIGNS
Sections
Banks Dodgy Deals Campaigns
Our campaigns
Banks and Climate
Banks and Human Rights
Banks and Nature
Our projects
Tracking the NZBA
Banks and Russia
Banks and Steel
Tracking the Equator Principles
Tracking the PRBs
Find a Better Bank
Banks and the OECD Guidelines
Media
News Publications
Raiffeisen Out! Bank.Green End Coal Finance Plastic Banks Tracker Defund TotalEnergies Financial Exclusions Tracker Equator-Complaints.Org Don't Buy into Occupation Banks & Biodiversity Forests & Finance Drop JBS StopEACOP Fossil-Free Finance
BankTrack
About BankTrack Organisation Our team Our board Our annual reports Funding and finances Guiding principles Our history BankTrack in the media Team up with us Our privacy policy Donate Visit us
Successes Contact BankTrack
Donate Mailing list Facebook Twitter Linkedin Login
Home › Partner news ›
Partner News

APP’s New Pulp Mill Endangers Indonesia’s Climate Change Commitments

Asia Pulp & Paper’s $3 billion mill locks in high carbon emissions and fire threat for decades. NGOs call on company to stop using drained peatlands for pulpwood plantations and to restore degraded areas.
2017-01-19 | Jakarta, Indonesia
By: Eyes on the Forest, Hutan Kita Institute, Wetlands International, Woods & Wayside International & Yayasan Auriga
Contact:

Marcel Silvius, Wetlands International, +31 318 660924, marcel.silvius@wetlands.org  
Woro Supartinah, Jikalahari +62 813 17566965, worozafira@gmail.com
Nyoman Suryadiputra, Wetlands International, +62 251 8312189, nyoman@wetlands.or.id

The OKI mill in South Sumatra. Photo: Wetlands International
2017-01-19 | Jakarta, Indonesia
By: Eyes on the Forest, Hutan Kita Institute, Wetlands International, Woods & Wayside International & Yayasan Auriga
Contact:

Marcel Silvius, Wetlands International, +31 318 660924, marcel.silvius@wetlands.org  
Woro Supartinah, Jikalahari +62 813 17566965, worozafira@gmail.com
Nyoman Suryadiputra, Wetlands International, +62 251 8312189, nyoman@wetlands.or.id

On December 23, 2016 Asia Pulp & Paper (APP) announced that it started production at one of the largest pulp and tissue mills in the world. In a joint statement released today, Wetlands International, Eyes on the Forest, Rainforest Action Network, Hutan Kita Institute, Woods & Wayside International, and Yayasan Auriga denounce the OKI mill in South Sumatra for its unacceptably high costs for Indonesia and the global environment. Read the statement.

The mill’s wood supply is grown mostly on drained peatlands, a production system that causes extremely high carbon emissions and, at times, catastrophic fires. The NGOs call on APP to present a plan to rewet and restore all of its plantations on drained peatlands. Until now, the company has not acknowledged that plantations on drained peatlands are unsustainable and should stop, despite overwhelming scientific evidence that supports this fact.
 
“APP needs to acknowledge the severity of the problem and stop draining peatlands to grow trees,” said Nyoman Suryadiputra, Indonesia Country Director for Wetlands International. “This starts with a commitment to phase out all drainage-based plantations on peatlands, and a credible plan to rewet and restore those areas,” he said.
 
An estimated three-quarters of the mill’s plantation concessions – at about 6,000 square kilometers (2,300 square miles), an area seven times the size of Singapore – are on peatlands, according to a detailed report published last April by 12 international and Indonesian NGOs.
 
When drained for the development of industrial plantations, peat becomes vulnerable to fires and releases very large amounts of carbon dioxide. Indonesia has prioritized peatlands restoration and conservation in its climate change commitments.
 
“With buyers increasingly concerned about their carbon footprints, sourcing paper from unsustainable peatland plantations – with an emissions profile tens of times larger than any other paper on the market -- just doesn’t make sense,” said Lafcadio Cortesi, with the Rainforest Action Network.
 
The development of peatlands for industrial forestry and agriculture, including the supply base of the OKI mill, was a major cause of Indonesia’s catastrophic fires in 2015, which exposed 43 million people to thick haze and resulted in $16 billion of economic losses for Indonesia.
 
The OKI mill is financed by $2.5 billion in loans from Chinese state-owned financial institutions. The Government of Indonesia has given the OKI mill a ten-year corporate tax holiday.

Banks

China Development Bank

China
Active
Dodgy Deals
There are no active project profiles for this item now.

OKI Pulp & Paper Mills

Indonesia
Project
On record
Pulp, Paper and Paperboard Mills

OKI Pulp & Paper Mills

Indonesia

Asia Pulp and Paper (APP)

Indonesia
Company
active
Pulp, Paper and Paperboard Mills

Asia Pulp and Paper (APP)

Indonesia
There are no active company profiles for this item now.
Sections
Banks Dodgy Deals Campaigns
Our campaigns
Banks and Climate Banks and Human Rights Banks and Nature
Our projects
Tracking the NZBA Banks and Russia Banks and Steel Tracking the Equator Principles Tracking the PRBs Find a Better Bank Banks and the OECD Guidelines
Media
News Publications
Raiffeisen Out! Bank.Green End Coal Finance Plastic Banks Tracker Defund TotalEnergies Financial Exclusions Tracker Equator-Complaints.Org Don't Buy into Occupation Banks & Biodiversity Forests & Finance Drop JBS StopEACOP Fossil-Free Finance
BankTrack
About BankTrack Organisation Our team Our board Our annual reports Funding and finances Guiding principles Our history BankTrack in the media Team up with us Our privacy policy Donate Visit us
Successes Contact BankTrack
Vismarkt 15
6511 VJ Nijmegen
The Netherlands
Contact@banktrack.org
Donate Mailing list Facebook Twitter Linkedin
©2023 BankTrack
BankTrack is a registered charity in the Netherlands (ANBI) - RSIN 813874658
Find our privacy policy here

Stay up to date

Sign up now for all BankTrack's news


Make a comment

Your comment will be reviewed, before being posted