APP ACKNOWLEDGES LINKS TO CONTROVERSIAL SUPPLIERS, BUT FAILS TO RELEASE AN AUDITOR’S REPORT
Seven Takeaways From a New Report by Asia Pulp & Paper on Links to its Pulpwood Suppliers in Indonesia
- The Executive Summary was prepare by APP/Sinar Mas and is not an independent auditor’s report.
- APP/Sinar Mas does not deny claims that current and/or former employees are shareholders, directors, and commissioners of pulpwood suppliers that APP previously described as “independent”.
- APP admits that four wood suppliers involved in the 2015 fires are partners over which it has “significant influence”, including possible ownership and management links.
- APP acknowledges wood purchses from PT Fajar Surya Swadaya, an East Kalimantan supplier engaged in deforestation.
- Following previous denials, APP acknowledges a partner relationship with PT Sarana Bina Semesta Alam, an East Kalimantan chip mill, which sourced rainforest wood from deforestation.
- Ownership of PT Muara Sungai Landak (MSL), a plantation company found to be responsible for deforestation and peatland destruction, is attributed to a few rogue ex-employees, when even APP’s current Sustainability Director is a former shareholder.
- The declared list of APP companies does not cover the full scope of the APP/Sinar Mas Group’s corporate structure.
These are the key takeaways from APP Assessment on Its Link With Industrial Forest Plantations in Indonesia that the company released on March 15, 2019.
The Executive Summary is presented as fulfilling APP’s commitment to involve an independent auditor to review its corporate structure and linkages to suppliers, which was communicated in response to the Koalisi Anti Mafia Hutan’s report Removing the Corporate Mask.

The Koalisi Anti Mafia Hutan again encourages APP/Sinar Mas to comply with Presidential Regulation 13/2018 on beneficial ownership of suppliers in Indonesia, and to be transparent about all companies under its control globally. In addition, APP/Sinar Mas should release audited financial reports of its “partner” pulpwood suppliers.