Social conflict and environmental disaster:
A report on Asia Pulp and Paper’s operations in Sumatra, Indonesia

By Rivani Noor and Rully Syumanda - August 2006

This report discusses the social, economic and environmental impacts of APP’s operations. Chapter one gives an overview of Indonesia’s forestry industry development paradigm, which led to the industrial tree plantation policy (or Hutan Tanaman Industri [HTI]) to satisfy the pulp and paper industry’s demand for raw materials. Chapter two gives an overview of APP and its operations in Sumatra. Chapter three discusses the environmental impacts of APP’s operations in the provinces of Riau and Jambi in Sumatra. Chapter four describes the social and economic impacts of APP’s operations, as well as the impacts on local communities. Chapter five discusses the rights of workers employed by APP. The report ends with a summary of the impacts caused by APP’s operations.

Click here to download the complete text in pdf format (738 Kb)

How to obtain a copy

Table of Contents

Introduction

Chapter One: INDONESIA’S FORESTRY
1.1 The forestry industry’s impact on the forests
1.2 Forestry militarism
1.3 Indonesia’s pulp and paper boom

Chapter Two: ASIA PULP & PAPER
2.1 The largest deforesting timber industry
2.2 PT Indah Kiat Pulp Paper (PT IKPP)
2.3 PT. Arara Abadi (PT AA)
2.4 PT. Lontar Papyrus Pulp and Paper Industry

Chapter Three: ENVIRONMENTAL IMPACTS
3.1 Deforestation, destructive logging and unsustainable supply
3.2 Forest fires

Chapter Four: SOCIOECONOMIC IMPACTS OF APP’S OPERATIONS
ON LOCAL COMMUNITIES
4.1. Province of Riau
4.1.1 Mandiangin Village, Minas Sub-district, Siak District
4.1.2 The history of Pinang Sebatang Village and Tualang Village in Siak District, Riau Province
4.1.3 Local economy and a change for the worse
4.1.4 Changes in social, cultural and environmental aspects
4.2 Province of Jambi
4.2.1 History of the village Pematang Lumut
4.2.2 The local economy and the change for the worse
4.2.3 Changes to social, cultural and environmental aspects

Chapter Five: LABOUR
5.1 Riau
5.2 Jambi

Chapter Six: CONTRIBUTION TO LOCAL ADMINISTRATION REVENUES