Asia Pulp and Paper Corporation, also known as APP, is a pulp and paper company that was founded in Indonesia in 1992. In the last few years, APP has been accused of violating human rights. Critics accuse the corporation of destroying rainforests for their palm oil plantations and polluting rivers with toxic chemicals. But does Asia Pulp and Paper deserve this bad reputation? Let’s explore how this corporation came to be what it is today.
Asia Pulp and Paper Corporation
Asia Pulp and Paper Corporation, also known as APP, is a pulp and paper company founded in Indonesia in 1992. In the last few years, APP has been accused of violating human rights. Critics accuse the corporation of destroying rainforests for their palm oil plantations and polluting rivers with toxic chemicals. But does Asia Pulp and Paper deserve this bad reputation? Let’s explore how this corporation came to be what it is today.
APP was established by the Salim Group in response to the growing demand for pulp and paper products created by a population boom that began in the 1980s. The group established the company with an investment of $140 million USD (1990) in Indonesia’s South Sumatra province. Palms became a significant crop for APP due to their rapid growth rate, low cost to cultivate, high yields per hectare, and suitability for large-scale cultivation. Palm plants produce fruit year-round so that harvesting can occur at any time of the year without interrupting overall production. This lucrative crop made up 28 percent of APP’s capital expenditure between 2009 and 2013 ($3 billion USD).
History of Asia Pulp and Paper
Asia Pulp and Paper was founded in 1992 as a joint venture between the Indonesian Government and International Paper. The company began with two pulp mills, one located in Indonesia and one in China, at the time. In 1995, it opened its third mill, located on the island of Sumatra.
Today, Asia Pulp and Paper produces more than 60 million tonnes of pulp annually. Additionally, they have over 1 million hectares of palm oil plantations that span across five Asian countries: Indonesia, Malaysia, Thailand, Laos, and Papua New Guinea. It’s also worth noting that APP has also been expanding into other industries such as paper packaging and retailing.
APP continues to grow internationally despite being accused of violating human rights. But are these charges true? Let’s explore what critics have claimed about APP so we can get a better understanding of the truth behind these accusations.
Current State of the Corporation
APP’s success stems from the fact that it diversified into other industries such as palm oil plantations and property development. This helped the corporation become one of the largest companies in Asia with over 100,000 employees and a net profit of $238 million USD in 2015.
APP is a controversial company because of its involvement with deforestation and human rights violations. The corporation started to clear rainforests for their palm oil plantations which led to the destruction of wildlife habitats and endangering endangered species like orangutans. They also have been accused of employing child laborers which violate international law.
Asia Pulp and Paper Corporation is a pulp and paper business group with headquarters in Jakarta, Indonesia. It is the largest pulp and paper company in the world. The company operates in more than 20 countries.
The company has several subsidiaries that produce a wide range of products. The company operates in more than 20 countries, which include China, India, the Philippines, Indonesia, Thailand, Vietnam, Indonesia, Malaysia, and Taiwan.
