'Deliberate use of fire has no commercial rationale': Asia Pulp & Paper, linked to Indonesian forest fires, says Indonesian law bans burning

Asia Pulp & Paper (APP) has said the use of fire to clear or manage land is not allowed throughout its supply chain.

This comes after the Singapore Environment Council (SEC) issued a temporary restriction notice on APP's enhanced Singapore Green Labelling Scheme (SGLS+) certification.

As a result of the notice, the Singapore-incorporated company will be subjected to daily fire response reporting and strict monitoring.

So far, a total of 10 Indonesian companies have been issued preventive measure notices by the National Environment Agency (NEA) after hotspots were detected on lands they operated.

Investigations have showed that APP buys from at least three of them.

Burning "forfeits the very asset the business relies on": APP

When asked by Mothership if the Singapore government had approached it for more information about the current haze episode, APP said it respects the authorities' regulatory processes and recognises the importance of cross-border cooperation on transboundary haze.

It added that it will work with the relevant authorities and provide information or assistance where requested.

The company said it has already taken steps to facilitate engagement between its suppliers and NEA, and is working with its relevant suppliers to support firefighting efforts and strengthen prevention measures.

APP acknowledged that the haze issue is complex, but said deliberate burning makes no commercial sense for a "responsible plantation operator", as fire destroys the very trees the business depends on.

"Fire destroys the growing stock on which a plantation depends; burning therefore forfeits the very asset the business relies upon."

It also stressed that using fire to clear or manage land is banned under Indonesian law and across its supply chain.

"Addressing transboundary haze requires sustained cooperation among concession holders, regulators and other stakeholders, and APP remains committed to contributing to these efforts," it said.

Government questioning 7 SGX-listed firms

Speaking previously at a doorstop on Oct. 19, Senior Minister K Shanmugam said the government will question seven Singapore-listed agriculture companies about possible links to the Indonesian forest fires that have caused haze here in recent weeks.

The seven companies are:

• Golden Agri Resources,
• Bumitama Agri,
• First Resources,
• Wilmar International Limited,
• Kencana Agri,
• Indofood Agri and,
• TSH Resources.

Citing First Resources, which issued a statement on its zero-burning policy and firefighting efforts, SM Shanmugam said statements alone were not enough.

"Show us the evidence. Where did the fires start, who owns those lands? Can they identify who started the fires? What exactly did they do to stop the fires? Did the fires conveniently only burn down old trees, or did the fires also burn productive trees? We will ask for the full facts and we will act based on the facts. We will consider all the evidence fairly."

Companies which are responsible for the fires "should not underestimate the Singapore government's determination to act", the minister added.

SEC notice

Under the notice issued by SEC, APP has to provide daily fire response reports for the concession areas managed by these three Indonesian companies: PT Bumi Mekar Hijau, PT Bumi Andalas Permai and PT Sebangun Bumi Andalas Wood Industries.

The three entities, which are wood-fibre suppliers to APP and operate concessions in South Sumatra, Indonesia, are part of the 10 companies that were issued preventive measures notices under the Transboundary Haze Pollution Act by the NEA.

Should APP's additional reporting fail to show that monitoring, fire prevention and suppression measures are effective, its SGLS+ certificate may be suspended.

The SGLS+ logo would then also have to be removed from products linked to the certification.