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Asia Pulp & Paper facts for kids
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| Private | |
| Industry | Pulp and paper |
| Founder | Eka Tjipta Widjaja, Singgih Wahab Kwik (Kowik) |
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Area served
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Worldwide |
| Products | Packaging, paper, tissue |
| Parent | Sinar Mas Group |
Asia Pulp & Paper (APP) is a big company from Indonesia that makes pulp and paper. It's one of the largest paper companies globally. It started in 1972 as Tjiwi Kimia, founded by Eka Tjipta Widjaja. Later, in 1994, it officially became Asia Pulp & Paper when it joined with other paper businesses from the Sinar Mas Group. Today, APP makes many products like packaging, paper, and tissues.
Contents
History of Asia Pulp & Paper
APP began as Tjiwi Kimia in 1972. Its founder, Eka Tjipta Widjaja, was already successful in other businesses. He started Tjiwi Kimia with partners from Taiwan to make paper.
In 1976, another company called Indah Kiat was formed. Sinar Mas, Widjaja's main group, bought most of its shares. Tjiwi Kimia's shares were first sold on the Jakarta and Surabaya Stock Exchanges in 1990. In the early 1990s, Tjiwi Kimia started building paper factories in China.
In 1994, Sinar Mas brought all its paper businesses together under the name Asia Pulp & Paper. The next year, APP's shares were listed on the New York Stock Exchange. The company invested a lot of money to become a leader in the paper industry. By 1999, it was making over four million metric tonnes of paper and packaging each year.
Around 2001, APP faced big financial challenges. It had borrowed a lot of money and struggled to pay it back. This was a very large financial issue in Asia at the time. The company had to reorganize its finances and make plans to repay its debts over many years.
APP later moved its main office back to Indonesia. By 2010, APP owned and operated five major paper companies in Indonesia. Its main operations were in Indonesia and China, producing millions of tons of paper annually.
How APP Operates
Protecting the Environment
In 2012, APP announced its "Sustainability Roadmap Vision 2020" plan. This plan was a promise to use only raw materials from special tree farms. It also aimed for all its suppliers to follow strict environmental rules by 2015. Independent groups checked their progress.
By 2012, all of APP's factories in Indonesia had a special certification. This certificate, called SVLK, ensures that the wood they use comes from legal sources. It also means that all products they send out can be traced back to where the wood came from. This helped APP get permission to sell its products in Europe.
In 2013, APP stopped clearing natural forests in its supply chain. They worked with groups like The Forest Trust and Greenpeace to create their Forest Conservation Policy. This policy helps them protect forests. APP also welcomed outside experts to check if they were keeping their promises. They even created an online tool to share updates on their progress.
In 2014, APP worked with the Indonesian government and other groups. They planned to help restore and protect 2.5 million acres of rainforest in Indonesia. In 2015, APP received another important environmental certification called PEFC.
Wildlife Conservation Efforts
In 2010, APP helped create the Senepis Buluhala Tiger Sanctuary. This large area of land, about 106,000 hectares, helps protect the endangered Sumatran tiger.
Even with its conservation efforts, APP has faced concerns about its activities in Sumatra. Some people worried that the company's plans to make more paper might affect its promise to protect forests. APP ordered a study to check if they had enough tree farm resources for their plans. The company said the study showed they did, but the full results were not made public.
See Also
- Eka Tjipta Widjaja