VZCZCXRO8428
RR RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #0732/01 1010858
ZNR UUUUU ZZH
R 100858Z APR 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 8663
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHKO/AMEMBASSY TOKYO 1800
RUEHBJ/AMEMBASSY BEIJING 4922
RUEHBY/AMEMBASSY CANBERRA 2315
RUEHUL/AMEMBASSY SEOUL 4518
RUEAIIA/CIA WASHDC

UNCLAS SECTION 01 OF 02 JAKARTA 000732 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR OES/ENRC, EAP/MTS, EAP/RSP 
USTR FOR MLINSCOTT, DBROOKS 
USAID FOR ANE, EGAT [CBARBER, MMELNICK] 
BANGKOK FOR RDM/A 
 
E.O. 12958: N/A 
TAGS: SENV EAID KGHG ECON PGOV ID
SUBJECT: DEVIL IN THE DETAILS - PERILS OF ENVIRONMENTAL PARTNERSHIP 
IN SUMATRA 
 
¶1. (SBU) Summary: A logging road controversy involving Asia Pulp & 
Paper (APP) on the island of Sumatra underscores the significant 
role (beneficial or detrimental) of the private sector in protecting 
critical forest habitats in Indonesia.  Some NGOs and paper and pulp 
companies have collaborated successfully in Indonesia.  Entrenched 
positions, however well-intentioned, can sometimes prevent other 
potentially beneficial partnerships between NGOs and a large 
forestry firm (like APP) from being realized. End Summary. 
 
The Story 
--------- 
 
¶2. (SBU) "Eyes of the Forest", a coalition of various local NGOs 
that appears to be spearheaded by Worldwide Fund for 
Nature-Indonesia (WWF-Indonesia), recently accused APP of building 
an illegal logging road in Kampar district, Riau Province that 
threatens forests and rare tigers in eastern Sumatra.  It said the 
Kampar area is home to around 60 Sumatran tigers, and that the road 
would give poachers easier access to this severely threatened 
population.  These groups have raised the issue before, and made 
similar claims against APP in other parts of Sumatra.  For example, 
in January 2007, WWF-Indonesia said APP-associated companies were 
constructing a highway bisecting the Bukit Tigapuluh landscape area 
between Riau and Jambi provinces, as well as clearing natural forest 
areas in the Jambi portion of that landscape.  A WWF-Indonesia 
representative, however, told us that work on the aforementioned 
road in Kampar appears to have stopped recently. 
 
The Background 
-------------- 
 
¶3. (SBU) WWF and APP (and its Indonesian fiber suppliers, the Sinar 
Mas Group forestry companies (SMG)) had a falling out in 2003.  The 
agreement to work together to protect forests in Riau and Jambi 
provinces fell apart after six months due primarily to disagreement 
over methodologies and statistical projections, says WWF-Indonesia. 
WWF felt APP was not collaborating with them in good faith, and they 
have not cooperated since.  In addition to WWF, other green groups 
also view APP as among the worse forestry companies in terms of 
environmental practices.  This has created concerns about the 
"reputational" risk of associating with APP in any way. 
 
The Impact: A Partnership Deferred... 
------------------------------------- 
 
¶4. (SBU) Wildlife Conservation Society-Indonesia (WCS-Indonesia) was 
prepared to begin work with APP on tiger conservation in this part 
of Sumatra last year.  It had negotiated an agreement to train APP 
staff to assess the numbers and conditions of tigers across all of 
its holdings and then work to advise them on best management 
practice.  The agreement fell through when WWF-US advised WCS 
headquarters against the collaborative arrangement.  This, according 
to one WCS staff member, was unfortunate "for both WCS and the 
tigers".  APP and its subsidiaries, says one of its employees, are 
in one way or another responsible for around 1.2 million hectares of 
forest in Sumatra. 
 
...But Hoped For 
---------------- 
 
¶5. (SBU) WCS-Indonesia is still in regular contact with APP staff; 
it believes APP wants to collaborate constructively with NGOs on 
conservation (whatever its motives for doing so), the more so after 
all its bad publicity and its bad reputation among environmental 
NGOs.  Staples' recent decision to end its commercial relationship 
with APP especially stung the company, coming on top of longstanding 
accusations about its environmental practices.  Staples had 
previously sourced over 9 percent of its total paper supply from AP. 
 WWF's lobbying, including publicity about the logging road, was 
apparently highly influential if not decisive in Staples' decision. 
(Note: APP officials could not meet with us at this time, due to 
work and travel schedules, but we plan to meet them at the end of 
April to discuss the issue in more detail.  End Note.) 
 
Looking Ahead 
------------- 
 
¶6. (SBU) The same WCS-Indonesia staff member told us that 
WCS-Indonesia still wants to work with APP in the future; in fact, 
 
JAKARTA 00000732  002 OF 002 
 
 
it still informally advises them as part of a forum including Riau 
local governments and the Forestry Department in Riau.  However, NGO 
statements about how the "tigers of Kampar don't stand a chance" 
because of APP's activities, create a charged atmosphere that 
impedes NGOs like WCS from fully exploring potential NGO-industry 
partnership at the field level.  In one example of a past successful 
partnership, WWF helped Riau Andalan Pulp and Paper (RAPP), a 
competitor of APP in Riau Province, obtain Forest Stewardship 
Council (FSC) certification. 
 
¶7. (SBU) APP has a combined pulp, paper and packaging capacity in 
Indonesia of more than 7 million tons, according to its Web site. 
Involving corporate giants like APP, some conservationists believe, 
can only help in tackling Indonesia's environmental challenges. 
Given the low base they would be starting from, there is little 
downside to collaboration.  WCS-Indonesia thinks there are 
potentially 200-300 tigers within this area.  According to one WCS 
expert, professionally-managed concession areas, with more security 
and financial resources than many national parks in Sumatra, offer 
great possibilities for tiger conservation. He added that, if 
companies manage production forestry landscapes to maximize the deer 
and wild pig population they can be good tiger habitats, especially 
because tigers "don't actually like primary forest very much." 
 
HUME