Villagers demand APP's company to pay off profit sharing

EoF News / 04 March 2010

PEKANBARU (EoF News)—Villagers in Kampar Peninsula protested a pulpwood plantation company associated to Asia Pulp & Paper (APP) for failing to pay off profit sharing fee over timber felling cooperation in 12,000 hectares of natural forest converted to  pulpwood concession in Serapung village.

Riau Terkini website reported last week (23/2/2010) that Serapung villagers came by four boats to office of  PT Satria Perkasa Agung, an APP associated company, in Pulau Muda of Kuala Kampar sub-district, Pelalawan, Riau, on Sunday (21/2). The residents insisted to stay up at the office until their demand fulfilled by the fiber supplier’s management.

Serapung village head, Jasman, said that the community asked their rights to obtain profit sharing fee in amount to Rp2.3 billion to PT SPA that for many times since 1996 the APP’s associated company broke the promises. 

He said PT SPA had only paid Rp 600 million of Rp 3 billion commitment to the Serapung community.

“Last time in 2006 a MoU was written again but [the company] still broke the promise. We demand profit sharing payment for pulpwood plantation development in three millions rupiah per hectare that multiplied to 780 hectares,” Jasman told media as quoted by Riau Terkini website as saying.

Spokesperson of PT Indah Kiat Pulp & Paper (IKPP), an APP pulp mill, Musherizal Yatim, who represented PT SPA, denied the Serapung community’s claim saying that the company had paid fully the timber profit sharing in Serapung and Pulau Muda, Riau Terkini reported.

Don’t buy 'forest criminal' products

In separate development, environmental organizations in Riau called Asia Pulp & Paper (APP) buyers last week (24/2/2010) not to buy products made by the ‘forest criminals’.

A joint press release published by Jikalahari, Walhi Riau and Greenpeace called companies who will deal with APP to think over on behalf of forest protection commitment and climate change mitigation. 

”Sustainability commitment that ever been reverberated by APP is not in line with its practices done on the ground,” said Hariansyah Usman, Walhi Riau Director Executive. 

“We demand expected APP buyers to ensure that their business contract will not drive further forest and peat destruction as well as global warming. While APP activities for years in Riau keep clearing natural forest,” said Muslim, deputy coordinator of Jikalahari, Riau NGOs network to rescue forest.


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