STATEMENT ON GREENPEACE REPORT

The Greenpeace report on global toy companies and Indonesian packaging material demonstrates little

understanding of Indonesia’s strict forest protection laws and about our industry’s commitment to

preserving this priceless natural resource. Government law about wood legality is both clear and

enforced. Companies ignore the law at the risk of prosecution – and losing their plantation concessions.

To address the environmental, social and economic development needs of Indonesia, the government has

developed a land use plan that allocates which area is for conservation and production purposes.

Understanding that natural forest cannot sustainably supply the need of the timber based industry,

including the pulp and paper industry, the government has allocated around 5% of Indonesia’s landmass

for the forest plantation industry on degraded forest and bare land.

In the development of industrial plantation forest, the remaining tree residue has to be cleared. Industry

use of this tree residue is legally allowed and is the government’s preferred disposal method rather than

burning it or letting it to rot on the ground. It is irresponsible and disingenuous for Greenpeace to tell the

public that the presence of mixed tropical hardwood automatically imply illegal or unsustainable paper

product. To further assume that any paper product that contains mixed tropical wood and acacia fiber is

from Indonesia alone is also false, many developing nations in Asia, South America and Africa, which are

in the process of developing their plantation forestry, also produced this type of fiber.

We are disappointed of Greenpeace’s tactics to exploit the stereotype of backwoods loggers in developing

nations who cleared entire forests with no regard for the environmental impact. The truth is Indonesian

forestry practices are far more sophisticated. Our industry is committed to the creation of clearly defined,

sustainable plantations where we sow and harvest rapidly renewable fiber. We are proud that Indonesian

plantations produce full-grown trees in just six years while companies in many other nations must wait a

lifetime for trees to reach maturity. We are committed to protecting and managing our forest sustainably.

Allegations of anything less are an affront to our industry and the millions of people in Indonesia who

depend on it for their livelihoods.

Jakarta, 8 June 2011

H.M. Mansur

Chairman

Indonesian Pulp & Paper Association