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Management Side
APP statement on NGO allegations regarding APP suppliers and corporate structure

INDONESIA (News release) -- After studying in detail the report put together by the Koalisi Anti Mafia Hutan (KAMH), we are unsure of what wrongdoing they are alleging APP have committed.

It is not unusual for any company to have significant economic or operational relationships with other companies in their supply chain. This is especially so in highly integrated supply chains like ours. APP's key focus is to ensure that our wood supply is free from deforestation. Our links and influence over our suppliers play a major part in ensuring that.

As stated in the KAMH report's disclaimer, all the information presented about the ownership structures of companies in our supply chain are from publicly available sources, including our own disclosures. We are unsure as to how KAMH has arrived at the conclusion that this information is being deliberately hidden from public view.

APP has previously stated, we firmly enforce the FCP across our supply chain and will not hesitate to discipline and dismiss suppliers that breach the FCP, even if former employees, or Widjaja family members, are shareholders of these companies. We are focused on the actions and practices of our suppliers rather than their shareholding structure.

However, in order to put our stakeholders' minds at ease, APP will engage an third party auditor to look into the shareholding of all forestry businesses in Indonesia to determine if any APP employees are involved in businesses that present a conflict of interest. We will be organising a workshop to discuss the results of this audit with interested parties when the report is complete. We hope this will put an end to unmerited aspersions once and for all.

Since 2013, we have dedicated ourselves to playing a major role in fighting climate change, working closely with stakeholders and NGOs to ensure implementation of our policies. There have been significant progress in these areas. We should be working together to look at how to build upon this as this work makes a real difference to protecting natural forests and alleviating poverty.

For over a year, there has been a sustained attack on APP. First, it was an assertion that due to OKI mill's approved capacity, APP will have to deforest in order to feed the mill's capacity. This despite the fact that two independent parties, as well as the mill's financier, have all done their own studies determining that OKI will have enough supply without contravening the FCP, and that there has been no evidence of any deforestation to supply OKI or any of the mills under APP's banner.

Then, it was the accusation that APP was green washing due to its corporate structure. The "evidence" was that some of our suppliers are owned by companies which shared corporate addresses with Sinar Mas, social media posts or are/have been employees of APP or Sinar Mas. When pressed as to which of these wood suppliers were actually deforesting, the companies named actually do not supply wood to APP, and no one was able to present any evidence that any of our suppliers were actually deforesting.

Now the same "evidence" is being used to make allegations of "possible tax evasion" and "avoiding responsibility".

The report calls for APP to be investigated on the possibility that crimes have been committed, yet provides no evidence of any wrongdoing. Under Indonesian law, there are strict requirements for legal compliance in our corporate holdings. APP complies with all applicable laws and regulations.

KAMH further alleges that APP uses independent suppliers in order to make it easier for us to attain sustainability certifications. This does not reflect the engagement we have been having with certification bodies. We group all our ownership and suppliers for certification purposes, for which shareholders take collective responsibility. We have also applied a single standard - the FCP - across our entire supply chain, regardless of whether APP has shareholding in that supplier or not. We do this because the only thing that will make it easier for us to attain sustainability certification is for our entire supply chain to be sustainable.

APP understands and appreciates the role media and NGOs play in watching over corporations such as ourselves. Working together with NGOs, we have been able to make an impact not only on the environment but also the livelihoods of communities in an around our concessions. We remind the KAMH that Indonesia is governed by the rule of law and a presumption of innocence, not "guilty until proven innocent".

Once again, we urge stakeholders to engage with us and if they think there is any wrongdoing, to lodge it via our grievance mechanism which will compel APP to investigate. Many stakeholders have done so in the past and it has resulted in affirmative action by APP.

We strongly believe that if one is serious about fighting climate change and eliminating poverty, then a collaborative effort between corporations, regulators and civil society is needed to make true progress.

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EMPLOYMENT OPPORTUNITIES:

* We are looking for a Production Shift Team Leader to maintain high standards, plus ensure safety policies and regulations for a company located close to Chicago's Midway Airport. If you are experienced team leader who has a four-year degree in an engineering/technical field (paper science degree preferred, and experience in recycled linerboard or corrugating medium paper mills is a plus), we are looking for someone like you! If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

* A family owned and operated corrugated packaging solutions company in Illinois is looking for an experienced Maintenance Technician to maintain production and quality by ensuring operation of machinery and mechanical equipment. Relocation and other perks are available to the right candidate who is committed to working third shift. If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

* Are you an experienced Maintenance Mechanic and would like to work for a family owned and operated corrugated packaging solutions company that invests in the best equipment and technology? If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

* A leading company in the corrugated solutions packaging business is looking for a experienced Electrician. The right candidate will possess the following skills: electrical; hydraulic; automatic drives (basic component machines 122 to 440 volts). If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

* An expanding company is looking for a Corporate Industrial Electro-Mechanical Engineer near Allentown, PA. Relocation is available. Do you have a storied list of unique electrical and mechanical engineering skills you're ready to take to the next level? Do you envision yourself in a corporate-level leadership role that your experience finally merits? And do you relish any opportunity to troubleshoot and solve real-time problems, all while designing and installing new services and systems that will not only ensure safety, but also turn a potentially hazardous work environment into a continuously thriving one? If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

* An expanding company is looking for hands-on Electro Mechanical Maintenance Techs in Conyers, Georgia. Preference will be given to candidates with higher education and additional certificates or training. You must be able to work any shift. Pay is negotiable with excellent perks and benefits. Relocation assistance is available to the right candidate. If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

* Working as a Consultant? Looking for some additional challenges with a flexible scheduling? Have a background in Consistency Control? This may be just the opportunity you are looking for: A large multi-national automation company seeks an expert in paper mill consistency technology. This individual will facilitate application support and start-ups in the paper mill environment. In addition, the ability to provide troubleshooting and technical advice and support is strongly desired. The individual should have an understanding of rotary, blade, microwave and optical consistency and the application of these devices in the paper mill. The company sells and maintains a line of consistency transmitters, sample valves and sheet break detectors. These products are marketed in the US through a rep. network. Knowledge of sheet break detection technology is also desirable. Individual must be willing to travel to paper production facilities across the US. Travel & Living Expenses to be reimbursed along with an agreed upon daily per diem rate. For more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.

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Jim Thompson is back again...with a new book on a taboo subject: the personalities in the pulp & paper industry. Jim has written in the past on many subjects based on his four plus decades in the worldwide pulp and paper industry. This new book is packed full of information valuable to the senior member of the industry as well as the recent entrant. A must for every pulp and paper library.


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