Strong Indications that PT IKPP Pulp Mill, Perawang Riau, Received Illegal Wood in July 2004

Press Release: Forest Rescue Alliance, Riau,
Pekan Baru, 14 September 2004

Background A huge raw material deficit in the pulp and paper industry is triggering illegal practices in Indonesia?s ever-depleting forest stock. Forest crime involves bureaucrats, business people, law enforcement officers, politicians and even community workers, so is hard to detect, let alone curb. What?s more, it?s costing Indonesia an estimated 85 billion rupiah (around US$9.26m) a day (Inform, 2004). Two of Indonesia?s seven pulp and paper companies are located in Riau province, Sumatra. These two companies together have an annual pulp production capacity of 3.7 million air-dry tons and need about 17 million ton of raw material from natural forest each year. The two pulp and paper companies have to source about 70% of their annual pulpwood supply from the natural forest because their acacia plantations do not produce enough plantation wood to fulfill their annual raw material demands. More