Wednesday, January 23, 2008

Discussion about Pulp and Paper in Pekanbaru

On Tuesday, January 3rd 2008 Kabut Riau Foundation organized a discussion about pulp & paper companies in Riau Province at KBH Riau’s office. The meeting attended by 3 NGO networks (Jikalahari, Walhi Riau and Forum Komunikasi Daerah LEI), and 3 community organizations (Sentra Gerakan Rakyat, Serikat Tani Riau, Aliansi Masyarakat Adat Riau) and also some NGO which is concentrate in pulp & paper issues like: Kabut Riau Foundation, Mitra Insani Foundation, Alam Sumatera Foundation, Perkumpulan Sialang, Kelompok Advokasi Riau, KPA EMC2, Perkumpulan Hakiki, Scale Up, Tesso Nilo National Park Foundation (TNTN), Lembaga Bantuan Hukum (LBH) Pekanbaru and Kudapan.

The Discussion’s Results:

The complications appeared in Riau about Pulp &Paper Industries are:

Law Enforcement

All year along 2007, as we knew that police department in this case, especially POLDA Riau is processing some involvement indication pulp &paper companies in illegal logging cases which is usually do by small branch companies as factory’s basic commodities supplier.

Also we knew that handling of law process emerged some different perception between Police Department and Forestry Department and also in DPR RI level, like between some commissions who handle this case.

On interval the different perceptions, the companies also played its part with some threat will discharge thousands of workers. Until now, law process is still go on and Police need supports from NGO and other parties to maintainance of law for these cases.

Land Expropriation

Sentra Gerakan Rakyat (STR) has been doing reclaiming action to the land that managed by PT Arara Abadi (APP Group) in Mandau Bengkalis. The struggle action did because the company seized the communities’ land for planted by accasia and as a consequence, the communities in those area lost the land as their livelihood which is passed on from one generation to the other.

The struggle action, protest, demonstration about this case have been doing since the beginning 2007 but unclear yet about the solution, so that the communities keep doing re-claiming action about the land which is belief as theirs.

The action did by means of claim the boundaries and yanked out accasia planted by the company. Not even one case won by STR until now but this action gave some stroke to the company.

Certification of Industrial Plantation Forest

After formalized Industrial Plantation Forest in Tesso sector with a certificate, RAPP will certificate LEI on its plantation in Pelalawan sector too. RAPP will test the whole certification system either domestic or foreign country to proof its success in manage forest plantation. Beside RAPP, it is reported that PT Arara Abadi will certificate its plantation areas which is locate in Bukit Batu region.


Corruption is one of three main stream of crime in cases that involve companies who manage Industrial Plantation Forest in Riau beside illegal logging and land expropriation. From all complications that involve pulp & paper industries in Riau, the settlement is also leisurely. Even if the problems emerge face with local community around Industrial Plantation Forest, indicated a lot of corruptions happened between administrators with industrialists. So that in every complication the little community always become the victims.


We found a lot of dhischarged of workers unilateral by the companies but this thing never heard by public because the workers didin’t say anything, not protest or struggle. Now there is one struggle case has been doing by ex workers discharged unilateral by one of branch PT RAPP and the case has been struggling in the jurisdiction of the highest court beyond which there is no appeal (Mahkamah Agung RI).

Taxes Embezzlement

We found indication taxes embezzlement in every work contract between PT RAPP and contractor who manage the job. If this thing can be proof and happened already so that could be calculated the financial loss of our countryfrom the taxes which is should payed by the companies to the state.

Basic Material Supply and Expansion

There is information that PT AA has been accepting supply of basic material from Kalimantan and for its expansion there is job opening by both of Industrial pulp &paper Groups (APP & APRIL) for staffing placement in Kalimantan and Papua.