Asia Pulp and Paper - About Asia Pulp and Paper
About Asia Pulp and Paper

Asia Pulp and Paper, a subsidiary of Sinar Mas Group, is one of the largest pulp, paper, and packaging producers in the world. Headquartered in Jakarta, Indonesia, Asia Pulp and Paper (APP) has an annual converting capacity of over 20 million tons and markets its products in more than 150 countries around the world. 

 
The company operates under its mission to deliver essential paper products to people all over the world using sustainable forest and peatland management, market-leading product environmental footprints, and people-first sustainable operations.
 
Eka Tjipta Widjaja founded APP in 1972  as a caustic soda producer. It’s first paper mill, Tjiwi Kimia, started production in 1978. Since then, APP has grown into a global business that delivers quality products to meet the growing global demand for paper, tissue, and packaging. 
 
This growth is driven by APP’s vision of a better future. As APP has expanded operations through the acquisition and expansion of its pulp and paper mills, it has remained committed to providing the highest level of customer service and continuing to develop innovative, sustainable practices. 
 
APP is now one of the largest vertically-integrated pulp and paper producers in the world, with its products making their way into the hands of consumers all over the world in various branded forms. 
 
APP continues to support sustainable growth through numerous company initiatives, including the launch of its Sustainability Roadmap in June 2012 and its Forest Conservation Policy in February 2013. Together, these policies improve the quality of APP’s supply chain by improving safety, ethics and environmental stewardship across key impact areas, including sustainable fiber sourcing, reforestation, and community empowerment. As part of APP’s vision for a better future, the integrity of its supply chain and commitments to the Sustainability Roadmap are crucial to operations. 
 
As APP’s business grows, it continues to support its partners, employees, communities, and various stakeholders around the world by delivering innovation, sustainably and responsibly. 
 
The company’s vision includes three pillars:
  • Product innovation: APP is positioned at the forefront of innovation and expertise for pulp and paper products.
  • Commitment to natural resources: APP aims to protect and reinvigorate the world’s most precious natural resources. 
  • Improving lives: APP strives to advance the lives of local and global communities.
APP’s core values include:
  • The employees who are critical to APP’s success.
  • The environment, which depends on sustainable operations.
  • The customers and suppliers who sustain APP’s business.
  • The shareholders and community to whom APP is accountable.
  • The principles of good governance as APP continues to build a sustainable business.

Asia Pulp and Paper employs more than 30,000 people around the world in locations such as Indonesia, China, India, and more. It is one of the largest employers in the pulp and paper industry. APP is committed to the health and well-being of its employees, and continually works to provide industry-leading standards of living for both employees and local communities. 

 
APP’s people-first commitment is a core driver in the way the company does business. APP’s many employee development programs invest in the talented, detail-oriented people who work to grow the business. By investing in employees and local communities, APP is able to protect and improve the lives of people who may not have otherwise had the opportunity for growth and development. 
 
The following are a few examples of the employee training and development programs provided by APP:
  • Executive Management Development 
  • Strategic Management Development 
  • Management Development 
  • Advance Supervisory 
  • Basic Supervisory 
  • Management Trainee 
  • Talent Management 
  • Employee Scholarships 
Asia Pulp and Paper has been innovating and delivering quality, sustainable products to consumers worldwide for almost 50 years. The company continues to deliver long-term value to stakeholders. Below is a financial summary of APP’s Indah Kiat plant performance.
 
Financial Highlights (in million USD): 

 

2018

2017

Net Sales

3.335.4

3,127.9

Gross Profit

1,203.7

903.5

Operating Profit

894

602.7

Net Profit Attributable to Owners of the Parent

588.1

413.2

Net Profit Attributable to Non-controlling Interest

.1

.1

Total Assets

8,751

7,634.2

Total Equity 

3,771.5

3,217.6

Return on Assets

6.7

5.4

Return on Equity

15.6

12.8

Net Profit Margin

17.6

13.2

Gross Profit Margin

36.1

28.9

Issued Shares

5,471

5,471

 

Over the years, Asia Pulp and Paper has expanded its operations through the acquisition and expansion of pulp and paper mills. This growth is guided by a vision of a better future, which has enabled APP to expand its global presence. As the company grows, it furthers its commitment to sustainable business management, low environmental footprint, and focus on local communities.  

APP’s major subsidiaries include:
  • Indah Kiat Pulp and Paper: Indah Kiat was founded in 1976 as a joint venture between CV. Berkat, Chung Hwa Pulp Corporation, and Yuen Foong Yu paper Manufacturing Company Ltd. Indah Kiat initially had only two paper machines with a production capacity of 100 tons/day for each machine. The company has grown over the years to now have three factories throughout Indonesia, located in Perawang-Riau, Serang-Banten, and Tangerang. 
  • Tjiwi Kimia: Founded in 1978, Tjiwi Kimia started as a caustic soda plant and has grown to become one of the world’s largest stationery manufacturers. Located in Sidoarjo, Indonesia, the plant’s annual paper and board production capacity is over 1.2 million metric tons. The product range includes sustainably-sourced, post-consumer waste paper products used for school and office stationery. Exercise books, pads, spirals, hardback books, drawing books, shopping bags, fancy stationery, envelopes, continuous forms, and file folders are among the products manufactured at Tjiwi Kimia.
  • Lontar Papyrus Pulp and Paper: Papyrus Pulp and Paper was established in Indonesia in 1974. The company began producing pulp in 1994 and tissue in 1998, with a total production capacity of approximately 1.02 million tons of pulp and 234,000 tons of tissue per year.
Asia Pulp and Paper manufactures its products at the following pulp and paper mills:
  • Indah Kiat Perawang: The mill is strategically located in Perawang, on the island of Sumatra, and uses renewable biofuel for 61 percent of its energy needs. 
  • Pindo Deli Perawang: Located in Riau Province, Pindo Deli Perawang focuses on the production of tissue for the converting market. The mill supports a local SME, responsible for utilizing wood container waste for the production of furniture and handicraft. The project reduced mill waste to landfill and provided local economic empowerment.
  • Univenus Perawang: Univenus Perawang is a small tissue mill. It is located adjacent to Indah Kiat Perawang and Pindo Deli Perawang, importing energy and water from the former.
  • Lontar Papyrus: One of the world’s largest vertically integrated pulp and tissues mills, Lontar Papyrus exports its products globally. As an integrated mill, Lontar Papyrus can use waste products from the pulping process as an energy source, providing for 64 percent of the mill’s requirements in 2018.
  • Indah Kiat Serang: Indah Kiat Serang is one of the biggest paper packaging companies located in Serang, Indonesia. The 550-hectare facility is strategically located near a port and is unique amongst APP’s mills, sourcing 85 percent of its raw material from post consumer waste. Working together with the local community, 100,000 mangrove trees have been planted since 2010 in an effort to reduce coastal erosion. In support of the national target for basic education, the mill has provided scholarships to over 35,000 school children across seven districts.
  • Indah Kiat Tangerang:  This mill’s raw material sourcing includes both pre-consumer waste and purchased pulp and it exports 86 percent of its products to a global client base. The mill promotes economic empowerment through a range of programs that support, mentor, and train the local community in aquaculture techniques, with products being sold to local cooperatives, restaurants and mill employees.
  • Pindo Deli Karawang: Consisting of three mills, Pindo Deli Karawang produces paper from purchased pulp. The mill supports an Eco-Village and Waste Management Program, encouraging the communities around the mill to collect, segregate and manage waste with the support of a local NGO. 
  • Tjiwi Kimia: This mill started as a caustic soda plant and now boasts many state-of-the-art paper and converting machines, making it one of the world’s largest stationery manufacturers. In partnership with the NGO Habitat for Humanity Indonesia, the mill has worked collaboratively to improve sanitation and hygiene conditions and awareness for neighboring communities.
  • Ekamas Fortuna: A zero waste-to-landfill site, this mill recycles and reuses all waste streams either on site or via licensed third parties. The mill supports a local ‘Green Village’ program, bringing together a range of stakeholders to cooperate in establishing a waste bank, community biogas project, catfish farming, and creating green spaces within the community.
  • OKI: OKI is located near Palembang, South Sumatra, and is equipped with the most advanced environmental technology currently available. The mill generates 90 percent of its power requirements from renewable waste products of the pulping process. In 2018, the mill continued to focus on supporting preschool education in the neighboring communities. Projects included construction activities to improve infrastructure and providing education training to further develop skills. The mill also supported a community empowerment project which increased access to drinking water through the establishment of an SME group.
APP contributes essential paper products to people around the world that are used for education, health and hygiene. APP’s sustainable and responsible business practices ensure that these valuable products will continue to be available for future generations. 
 
APP is an integrated producer of pulp, cultural paper, industrial paper, and tissue. The company processes sustainably-sourced wood into pulp and paper, as well as processing waste paper to industrial paper. The current annual production capacity for the Indah Kiat plant is 2.9 million tons of pulp, 133 thousand tons of tissue, 1.6 million tons of paper, and 2.1 million tons of packaging. 
 
APP’s fiber technology and manufacturing innovation ensure the production of biodegradable and compostable products for every need, from bleached hardwood paper pulp to a full range of paper, tissue, packaging, and stationery. 
 
APP’s product offerings include:
  • Fine printing and writing paper
  • Consumer and industrial packaging products
  • Tissue paper
APP is committed to continually improve its environmental performance, biodiversity conservation, and protection of community rights. In the effort to achieve this, APP aims to provide superior values to customers, community, employees, and shareholders – responsibly and sustainably.
 
In order to document and track its sustainability achievements, APP launched its Sustainability Roadmap in June 2012 and its Forest Conservation Policy in February 2013.
 
APP’s sustainability vision is to deliver innovative products through responsible forestry practices with a low carbon impact. Its commitment to sustainability extends throughout every step of the production process. 
 
Asia Pulp and Paper’s FCP Monitoring website provides up-to-date and transparent reports and highlights the efforts being made to transition Asia Pulp and Paper into a more sustainable enterprise with environmental and social responsibility at the forefront of its operations.
 
APP closely manges these activities to gather feedback and respond to expectations, ensuring that processes are monitored and accountability is in place for environmental performance.
 
The Sustainability Roadmap includes 10 key focuses:
  1. Sustainable fiber sourcing
  2. Reforestation
  3. Conservation and biodiversity
  4. Protection of human rights and indigenous people
  5. Community empowerment
  6. Climate change
  7. Emissions reduction
  8. Water management
  9. Solid waste reduction
  10. Employee welfare

The Sustainability Roadmap has resulted in the following successes:

  • 54 percent of energy is generated from renewable fuels.
  • APP reused, recycled or recovered over 487,802 tons (32 percent) of waste in 2018.
  • Fiber sourcing is 100 percent sustainable plantation wood for pulp. 
  • 18 percent reduction in carbon intensity, compared to 2012 baseline.
  • 9 percent reduction in energy intensity compared to 2012 baseline.
  • 24 percent reduction in water intensity compared to 2013 baseline. 
  • All mills operate at least 10 percent below national limits for COD and BOD.
  • 41 percent reduction in solid waste to landfill, based on 2010 baseline. 
  • APP supports the protection and restoration of natural forest inside APP pulpwood suppliers’ concession and outside concession through landscape approach.
  • Created dedicated conservation programs focused on “umbrella species” of Orangutan, Elephant, and Tiger conservation, with the support of NGOs and conservation specialists.
  • Extended additional protections of indigenous people’s customary rights in the forest.
  • Developed programs to benefit over 500 villages to increase welfare of indigenous and local communities and maintain good relations. 

APP’s FCP Monitoring provides up-to-date reports on efforts and achievements in sustainability, and environmental and social responsibility. APP has seen a number of achievements since launching the program, including: 

  • Zero natural forest conversion by APP Pulpwood suppliers since February 2013.
  • Holding its suppliers to the highest standards of conservation and carbon stock distribution.
  • Retiring 7,000 hectares of forest that are no longer used as supply forest.
  • Improving community welfare through constructive engagement and the responsible empowerment of indigenous peoples and local communities in 280+ villages.
  • Developing and launching an Integrated Fire Management program to prevent and mitigate land and forest fires.
  • Joining the Mangrove Ecosystem Restoration Alliance (MERA) and partnering with the Martha Tilaar Group.
APP’s conservation initiatives have enabled the company to continue its commitment to:
  • People: APP supports farmers and villagers in 5 regions of Indonesia to ensure no slash and burn practices are in place. 
  • Wildlife: APP contributes to the conservation and protection of key species native to Indonesia.
  • Endangered tree species: Since 2013, APP has been working with pulpwood suppliers to plant endangered tree species, such as Ramin, Balangeran, Gaharu, and Ulin.

 

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