Japan may reject APP products
Japan may reject APP products
Rendi A. Witular, Yogyakarta
Major Japanese importers are planning to reject pulp and paper
products produced by Indonesia-based Asia Pulp and Paper Co.
(APP) in September amid accusations that the company uses
illegally felled timber for its raw material.
Spokesman of the Ministry of Forestry Transtoto Handadhari
told The Jakarta Post on Monday that there was a plan by several
giant Japanese companies, such as Ricoh Co. to reject APP
products, following campaigns by non-governmental organizations
in Japan against APP.
According to Transtoto, APP's total exports to Japan may worth
about US$500 million per year, with 20 percent of the exports
destined for Ricoh.
"Due to the problem, the ministry has decided to help APP as
it may jeopardize the country's overall pulp and paper export to
Japan. We are afraid that Japanese buyers may think that our pulp
and paper products are mostly derived from illicit sources," said
Transtoto.
Transtoto said the ministry was suspicious that the rejection
was mainly a result of unfair trade practices conducted by
Japanese companies with affiliates in Asia that wanted to
takeover the huge market of APP.
Transtoto led the Indonesian delegation on Aug. 24, along with
Indonesian Ambassador to Japan Abdul Irsan, to clarify the
problem with representatives from the Japanese government, the
business community and several local non-governmental
organizations.
However, Transtoto said until now it remained unclear whether
the Japanese companies would proceed with their plan.
APP's buyers are largely from Japan, the European Union and
the United States.
The plan to reject APP products was made following the refusal
by the World Wild Fund for Nature (WWF) and other local Japanese
NGOs to endorse APP'a action plan to ensure a sustainable wood
supply for the world's 10th largest pulp and paper mill.
Yuji Imaizumi, assistant director for international forestry
cooperation at the Forestry Agency of Japan told the Post that
the rejection was a sign that Japanese companies were aware of
environmental issues in wood exporting countries, such as
Indonesia.
"Japanese companies have been increasingly aware of
environmental problems and sustainable development of forests.
The Japanese government was not involved in the rejection.
Consumers acted according to their conscience," said Imaizumi.
He explained that the government's main function was to raise
awareness of illegal activities in wood-producing countries in
order to help reduce illegal trade of wood-based products.
The Sinar Mas Group, founded by tycoon Eka Tjipta Widjaja, is
the controlling shareholder of APP. The company is currently
trying hard to restructure its defaulted debts totaling US$13.9
billion.