APRIL Statement on Recent Reports of Non-compliance by Two Fibre Suppliers
APRIL suppliers PT SRL and PT RL have recently been addressing separate instances of claimed non-compliance with certain laws and regulations. APRIL has provided clear instructions to both suppliers to immediately address the matters.
APRIL is committed to full compliance with Indonesian laws and regulations and to the fulfillment of our Sustainable Forest Management Policy, including our No Burn policy. We require all our fiber suppliers to do the same. Fiber suppliers that are found to be in willful violation of legal requirements will be internally investigated and subjected to strict disciplinary actions, including disengagement as an ultimate recourse.
On APRIL’s instructions, APRIL fibre supplier PT Sumatera Riang Lestari (PT SRL) conducted an investigation of operational activities, covering 127 hectares, that allegedly took place in PT SRL’s concession in Rupat (Block IV) within the period of an operational freeze (2 December to 31 March 2016).
Following its investigation, PT SRL reported to APRIL that the company has filed a report with the police for them to undertake further investigation on this possible unauthorized activity in Rupat concession (Blok IV). As this is now a matter of police investigation, APRIL cannot comment further at this time.
APRIL confirms that no wood was transported to or received at APRIL’s mill from the area allegedly affected during the period of the operational freeze. APRIL has also instructed PT SRL to do an urgent review and reinforcement of its monitoring system to ensure that any risk or incident of non-compliance will be immediately addressed and corrected.
It should be noted that the operational freeze on PT SRL was lifted by the Ministry of Environment and Forestry on 31 March 2016. Meanwhile, the concession license for PT SRL remains valid.
In a separate matter, APRIL was informed by PT Rimba Lazuardi (PT RL), a supply partner, regarding an administrative sanction imposed by the Ministry of Environment and Forestry (MoEF) on PT RL. The sanction is related to incidences of administrative lapse and non-compliance, including fire incidences in late 2015 that in total covered 106 hectares, scattered across five areas in its concession.
PT RL has reported to the local authorities that these fires started outside of the concessions and were quickly responded to by their fire team which prevented the fires from growing in size.
APRIL has instructed PT RL to fully comply with all the conditions set forth by the MoEF and to provide regular reports on the actions undertaken by them to the Ministry. PT RL was further instructed by APRIL to strengthen its fire detection and response system to further minimize the risk of fires in its concession and the immediately surrounding areas.
PT SRL and PT RL are companies that supply fiber to APRIL Group and are not APRIL’s subsidiaries or affiliates.