Japan may reject APP products<\/p>\n
Rendi A. Witular, Yogyakarta<\/p>\n
Major Japanese importers are planning to reject pulp and paper
\nproducts produced by Indonesia-based Asia Pulp and Paper Co.
\n(APP) in September amid accusations that the company uses
\nillegally felled timber for its raw material.<\/p>\n
Spokesman of the Ministry of Forestry Transtoto Handadhari
\ntold The Jakarta Post on Monday that there was a plan by several
\ngiant Japanese companies, such as Ricoh Co. to reject APP
\nproducts, following campaigns by non-governmental organizations
\nin Japan against APP.<\/p>\n
According to Transtoto, APP's total exports to Japan may worth
\nabout US$500 million per year, with 20 percent of the exports
\ndestined for Ricoh.<\/p>\n
\"Due to the problem, the ministry has decided to help APP as
\nit may jeopardize the country's overall pulp and paper export to
\nJapan. We are afraid that Japanese buyers may think that our pulp
\nand paper products are mostly derived from illicit sources,\" said
\nTranstoto.<\/p>\n
Transtoto said the ministry was suspicious that the rejection
\nwas mainly a result of unfair trade practices conducted by
\nJapanese companies with affiliates in Asia that wanted to
\ntakeover the huge market of APP.<\/p>\n
Transtoto led the Indonesian delegation on Aug. 24, along with
\nIndonesian Ambassador to Japan Abdul Irsan, to clarify the
\nproblem with representatives from the Japanese government, the
\nbusiness community and several local non-governmental
\norganizations.<\/p>\n
However, Transtoto said until now it remained unclear whether
\nthe Japanese companies would proceed with their plan.<\/p>\n
APP's buyers are largely from Japan, the European Union and
\nthe United States.<\/p>\n
The plan to reject APP products was made following the refusal
\nby the World Wild Fund for Nature (WWF) and other local Japanese
\nNGOs to endorse APP'a action plan to ensure a sustainable wood
\nsupply for the world's 10th largest pulp and paper mill.<\/p>\n
Yuji Imaizumi, assistant director for international forestry
\ncooperation at the Forestry Agency of Japan told the Post that
\nthe rejection was a sign that Japanese companies were aware of
\nenvironmental issues in wood exporting countries, such as
\nIndonesia.<\/p>\n
\"Japanese companies have been increasingly aware of
\nenvironmental problems and sustainable development of forests.
\nThe Japanese government was not involved in the rejection.
\nConsumers acted according to their conscience,\" said Imaizumi.<\/p>\n
He explained that the government's main function was to raise
\nawareness of illegal activities in wood-producing countries in
\norder to help reduce illegal trade of wood-based products.<\/p>\n
The Sinar Mas Group, founded by tycoon Eka Tjipta Widjaja, is
\nthe controlling shareholder of APP. The company is currently
\ntrying hard to restructure its defaulted debts totaling US$13.9
\nbillion.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/japan-may-reject-app-products-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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