Bogor, 9 February 2009.

Two national NGOs, Forest Watch Indonesia (FWI) and Telapak urged the Indonesian Ecolabel Institute (LEI) today to stop issuing Sustainable Management of Forest Estate (PHTL) to Industrial Timber Estates (HTI) that convert natural forest or open up peat ecosystems during the establishment of an estate.

LEI, which has just concluded its second congress, has issued PHTL certification to two HTI companies, PT. RAPP in Riau and PT. WKS in Jambi. Both companies converted natural forests into industrial timber plantations and some of their concession areas are built on peat ecosystems.

Wirendro Sumargo, Executive Director of FWI, said “LEI PHTL certification only looks at how the timber estates are managed sustainably during their operations, without considering ecological impacts of forest conversions, especially those in peat ecosystems. Industrial timber estates are built by converting natural forests into monoculture timber estates. This is clearly against the principles of sustainable forest management”.

The government has issued several criteria for timber estate development; it must be built on barren land or land without forest cover (underbrush, grassland or bare land). In reality, a lot of timber estates were established on logged-over area in productive forests or even in virgin forests.

In 2008, the government again issued 18 new industrial timber estate permits, one of which was given to PT. Semesta Inti Selaras, a subsidiary of Medco Group. This company has a permit to convert more than a quarter million hectares of forest in Papua, a large proportion of which, according to Telapak analysis, is still in good condition.

“Establishing industrial timber estates on natural forest and peat ecosystem means ignoring the risks of deforestation, forest fires, social conflicts and climate change. PHTL certification must be halted until there is a guarantee that industrial timber conessions will not be allocated on productive natural forest and peat ecosystems!” Wirendro said.

Meanwhile, Husnaeni Nugroho, a forest campaigner of Telapak added, “ Industrial timber estate certification like the ones in Sumatra is a misleading eco-label. LEI must stop this scheme or the forests in Papua will suffer from great risks associated with forest conversion”.

For more information:

Wirendro Sumargo, +62-815 9280 5850

Husnaeni Nugroho, +62-813 2884 1307

Notes to the Editor:

1. Forest Watch Indonesia is an independent forest monitoring network consisting of individuals and organizations committed to transparent management of forest information and data in Indonesia, and towards just and sustainable forest management.

2. Telapak is a member-based environmental organization based in Bogor.

3. The second congress of LEI was held on 7-8 February 2009 in Bogor and attended by all of it’s constituents from various stakeholders. Justice and Sustainable Natural Resource Management was a central theme in this event, held every four years.

4. PT. RAPP (Riau Andalan Pulp and Paper) is a subsidiary of Asia Pacific Resources International Holdings Ltd. (APRIL), while PT. WKS (Wira Karya Sakti) is a subsidiary of Asia Pulp and Paper Company Ltd. (APP) which is a member of Sinar Mas Group.

5. Forest Watch Indonesia conducted an analysis of forest cover change in Riau and Jambi provinces from 1989 to 2006. The provinces lost 3.1 million hectares and 1.1 million hectares of forest, respectively. Particularly in PT. RAPP and PT. WKS concession areas, forest loss is 176,000 and 75,000 hectares, respectively, including 17,000 hectares of peat land ecosystem.

6. Natural forest and peat ecosystem are distinctive areas with rich biodiversity and vital for the livelihood of indigenous and local peoples. Peat ecosystems also store huge amounts of carbon.

7. PT. Selaris Inti Semestra is an Industrial Timber Estate covering 259,000 hectares of Muting, Kurik, Kaptel and Merauke districts in Merauke, Papua province. An analysis of Environmental Impact Management (EIA) data of this company reveals that 124,456 hectares of the concession (44%) is natural forest in good condition and only 84,247 hectares (33%) are no longer forested.