APP Meets Tough New Standards on Wood Legality

Asia Pulp & Paper Group's (APP) announcement that its production mills are achieving SVLK certification under Indonesia's new Wood Legality Verification System is a major stride in addressing the most stringent requirements for legality around the world, including those in the European Union.

So far, six APP mills have either secured certifications or passed the audit, and the company's two remaining Indonesian mills anticipate securing certifications before the end of 2012.

Last week, APP’s 4th SVLK certification was announced - for its PT Indah Kiat Pulp & Paper Mill in Serang, Java.¹

SVLK is the Indonesian Wood Legality Verification System. The system creates a rigorous chain of custody process designed to ensure the mills only receive and process timber from legal sources, and that all products exported from the country are traceable to verifiable points of origin.

Aida Greenbury , Managing Director of Sustainability for APP, said:

"The 4th SVLK certification for APP indicates that we are committed to leading the industry in Indonesia and to support our Government to implement the toughest standards in the world for legality, including those in the European Union."

SVLK has an important role to play in helping Indonesian companies meet new European Timber Regulation (EUTR). In April 2011, Indonesia and the European Union concluded the Voluntary Partnership Agreement (VPA) under the Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan. Under this agreement, the design of SVLK is recognized as the credible system to guarantee the legality of timber from Indonesia. This VPA between the EU and Indonesia is expected to become operational in time for the introduction of the EUTR in March 2013.

Ms. Greenbury added:

“The SVLK program is a bold move by the Indonesian government. It provides assurance to our trading partners, customers and ultimately consumers that the products we provide are verifiable and meet our nation’s stringent legality, chain-of-custody and sustainability requirements. As countries around the world, including the EU member states, seek greater transparency and accountability, SVLK establishes a new standard by which Indonesian forest-based products are legally procured and processed. In fact, we believe other countries should view SVLK as a new benchmark.”

“The certifications of our mills represent a significant milestone, advancing APP further toward the goals set out in our 2020 Sustainability Roadmap.”

Beyond fulfillment of international legality standards, APP launched its 2020 Sustainability Roadmap in June, setting the company on a path to become wholly reliant on raw materials from plantations alone by 2015. In addition to that, independent auditors are now conducting assessments in a commitment to the internationally-accepted principles of High Conservation Value Forest (HCVF), which will include both owned and independent pulpwood suppliers. While HCVF assessments are on-going, the company has suspended natural forest conversion on its production forest concessions until an HCVF management plan is implemented.

About APP Indonesia:

Asia Pulp & Paper Group (APP) is a brand umbrella for paper products, which are produced by several mills in Indonesia such as PT Indah Kiat Pulp & Paper Tbk, PT Pindo Deli Pulp & Paper Mills, PT Pabrik Kertas Tjiwi Kimia Tbk, PT Lontar Papyrus Pulp & Paper Industries, and PT Ekamas Fortuna. APP is headquartered in Indonesia and markets its product to more than 120 countries. Most of APP's production facilities are Chain-of-Custody certified by LEI and PEFC. APP supports several main conservation initiatives, including a 178,000 hectare Biosphere Reserve in Giam Siak Kecil - Bukit Batu and an area of 106,000 hectares for the Senepis Tiger Sanctuary . Both are located in the province of Riau, Sumatera. Other APP wildlife preservation initiatives include the support of the Kutai Orangutan Program in Kalimantan and the conservation of the Javan Rhino in Ujung Kulon National Park.

About SVLK:

Enacted in 2009 by the Indonesian government, the SVLK system creates a rigorous chain of custody process designed to ensure that mills only receive and process timber from legal sources and that all products exported from the country are traceable to verifiable points of origin. Certification is provided through the National Accreditation Committee (KAN) and independently monitored by the Forestry Independent Monitoring Network, which consists of civil society and forestry industry experts.

¹ The other APP mills to have received certifications are PT Pindo Deli Pulp & Paper Mills in Karawang, PT Pabrik Kertas Tjiwi Kimia in Sidoarjo, and PT Ekamas Fortuna in Malang. All of these mills are located in Java.

Contact:

Europe
Cohn & Wolfe
T: +44 7331 5246
E: app.ukteam@cohnwolfe.com
or
Indonesia
Redita Soumi, APP Indonesia
E: redita_soumi@app.co.id