APP s New Mill (OKI) General Information

Transcription

1 APP s New Mill (OKI) General Information In July 2013, APP announced the majority share acquisition of PT. OKI Pulp & Paper Mills with detail shareholders: PT. Tjiwi Kimia Tbk, PT. Pindo Deli Tbk and PT. Muba Green Indonesia. The location of the mill is in Bukit Batu village, Air Sugihan district, Ogan Komering Ilir regency, South Sumatra province. The mill is supported by special terminal area (a jetty) and other supporting facilities at the nearby Jadi Mulya village. Below is the map of planned location for OKI Mill: 2016 is an initial target for the new mill being operational. The new mill is expected to produce around 2 million ADT of pulp and 500,000 tonnes of tissue per year. OKI Mill pulpwood suppliers are PT. Bumi Andalas Permai, PT. Sebangun Bumi Andalas, PT. Bumi Mekar Hijau, PT. Rimba Hutani Mas II, PT. Bumi Persada Permai, PT. Sumber Hijau Permai, PT. Bumi Persada Permai (Bintialo), and PT. Tri Pupa Jaya. As is the case with all APP mills, PT. OKI Pulp & Paper Mills will not use natural forest wood for its raw materials, and is committed to zero deforestation in its supply chain. APP is also applying the principles of Free, Prior and Informed Consent (FPIC) as part of the mill s development process.

2 Mill Development Process AMDAL Environmental Impact Analysis As part of the Indonesian government requirement, an environmental impact analysis (AMDAL) has to be completed prior to the mill development and used for decision making. The assessment covers: Geophysical-chemical aspects, Biology aspects, Socio-economic aspects, Socio-cultural aspects, public health aspects and master plan aspects as a complement to the feasibility study of a business plan or activities. Document for AMDAL includes: 1. Term of Reference for Environmental Impact Analysis/ Kerangka Acuan Analisis Dampak Lingkungan Hidup (KA- ANDAL) 2. Document of Analysis for Environmental Impact/ Analisis Dampak Lingkungan Hidup (ANDAL) 3. Document Environmental Management Plan / Rencana Pengelolaan Lingkungan Hidup (RKL) 4. Document Environmental Monitoring Plan / Rencana Pemantauan Lingkungan Hidup (RPL) The three documents (ANDAL, RKL and RPL) will be assessed by the Audit Commission for AMDAL. The results of this assessment are to determine whether a business plan or the activity is environmentally feasible or not and whether it is necessary or recommended to be given the permission or not.

3 Step Process for AMDAL study Description 1 Screening Process The process of screening is often referred to as the AMDAL mandatory selection process to determine whether an activity plan shall prepare AMDAL or not and AMDAL Audit Commission Authority in District or Province. 2 Public Consultation Process Part of the requirement in AMDAL is to hold public consultation to local community/ any potentially impacted communities. 3 Scoping Process / Preparation and Assessment of KA-ANDAL. Scoping is an early process to determine the scope of the problem and identify the significant impacts (Hypothesis) related to the proposed activities. The scoping process is to define the boundary of the study area, define the scope of the study, and examining other activities related to the proposed activities is assessed. The output of this process will be KA-ANDAL document and to be assessed by the Audit Commission of AMDAL. 4 Assessment Process Preparation and assessment of ANDAL, RKL and RPL documents with the reference to the agreed KA-ANDAL. Once completed, the initiator may submit documents to the Audit Commission of AMDAL to be assessed. Current Status of AMDAL (PULP) in OKI Mill. Step Process for AMDAL Study Description Result 1 Screening Process In Indonesia, the screening process is done with one-step screening system. The screening consideration which in accordance to the Ministry of Environment Decree No. 17/ 2001 Ministry of Environment Decree No. 05/2012 about types of activity plan which is AMDAL mandatory. Ministry of Environment No. 05/2008 about work procedures of audit commission of AMDAL Necessary and based on Letter from Regional Environment Agency of South Sumatra Province No. 660/835/BAN.LH/I/2013 the authority of AMDAL is on Province Audit Commission.

4 2 Public Consultation Process AMDAL Public Consultations were attended by South Sumatera Government, Environmental NGOs, Academics and Community Representatives, taken place at: 1. Monday 2 July 2012, Kalpataru Room 3 rd Floor at Environmental Body, South Sumatera Province. 2. Thursday 10 October 2013, Air Sugihan Sub-district office Positive and Support the development of OKI Mill as long as they work according to the Law. 3 Scoping Process 1. Project Scope: the area is allocated for production facility development, Jetty, and other supporting facilities. 2. Ecology Scope: the area where conditions of the ecosystem will be affected, ie through the water, air and river transport. 3. Social Scope: the area where social interaction is taken place. 4. Administration Scope: the area where the primary and secondary data s are obtained, in this case is Air Sugihan Sub-District, Ogan Komering Ilir District, South Sumatera Province. KA-ANDAL and the study scope are currently completed on the areas of: Desa Jadi Mulya, Desa Bukit Batu (Margo Mulyo), Desa Negeri Sakti (Sapto Harjo), Desa Rantau Karya (Panggung Harjo), Desa Pangkalan Sakti (Timbul Harjo), Desa Simpang Heran (Sido Makmur), Desa Rengas Abang (Sido Rahayu), Desa Kuala Sugihan. 5. Study Scope: the area studied as a result of those four scopes mentioned above. 4 Assessment Process Preparation and assessment of ANDAL, RKL and RPL documents with the reference to the agreed KA-ANDAL. These documents will be assessed by the Audit Commission of AMDAL. The result will be AMDAL Decree from South Sumatera Governor and an Environmental Permit from the Issuance of AMDAL Decree No. 866/KPTS/BAN.LH/2013 About the feasibility of the Environment. Issuance of Environmental Permit No.

5 Environmental Body South Sumatera Province Regional Environment Agency of South Sumatra Province. 895/KPTS/BAN.LH/2013. FPIC Implementation There are 9 FPIC steps will be conducted within the community/village around the OKI Mill No Name Description Step 1 Internal discussion Step 2 Desk study Step 3 Building relationship with government Step 4 Identification and mapping groups in community Step 5 Field implementation Step 6 Internal discussion Step 7 Agreement Step 8 Work plan on agreement implementation Step 9 Monitoring on agreement implementation determine the area, building a team, prepare logistics and accommodation, scheduled activities per village, budget, etc. 1. create a mapping to the village and the impact that may be faced by the construction of a paper mill near human settlements from various available sources. 2. validate the results of the desk study with field conditions 3. develop FPIC presentations based on validation making permit activities plan and conduct simple socialization activities and ask for help to invite the people in accordance with the criteria required identify groups of people who will be involved in activities such as groups of women, youth, the poor people, indigenous people, etc socialization relates to the construction of the paper mill and the impact that would cause in every hamlet and village while sharing the results of activities that have been performed and determine the next steps for example the demand arising from community establish an agreement with the community to help each other and complement each other so that awoke a mutually beneficial relationship produce an action plan of how to implement the results of the agreement monitoring the implementation of activities in accordance with the agreements that have been made

6 APP and TFT has finished conducting step 1 to 6 of FPIC implementation, the progress status of the implementation can be found on our FPIC implementation pilot project. Stakeholder engagement OKI Mill conducts monthly meeting with local government and local community to update the progress of Mill development.