January  4,  2013    Linda  Wijaya,    Asia  Pulp  and  Paper  Jl.  M.H.  Thamarin  51  BII  Plaza  Tower  II  Jakarta,  10350    Dear  Ms.  Wijaya,    Thank  you  for  your  letter  of  12  October  responding  to  our  letter  of  24  September  on  the  human  rights  audit  and  Mazars.  We  hope  to  use  both  Bahasa  Indonesia  and  English  in  future  communications.    While  the  human  rights  initiative  that  APP  is  undertaking  is  a  step  towards  respecting  the  rights  of  communities  affected  by  its  business,  we  believe  that  its  limited  scope  and  methodology  as  well  as  the  lack  of  transparency  and  questionable  stakeholders  process  make  it  inadequate  to  address  the  broad  range  of  social  and  human  rights  impacts  associated  with  APP’s  mills  and  the  large  areas  of  land  -­‐  much  of  it  claimed  by  indigenous  peoples  and  local  communities  –  providing  wood  and  fiber  to  the  business.  We  intend  to  address  specific  responses  to  the  letter  forwarded  from  Mazars  and  the  audit  by  separately.            After  conferring  in  November,  the  signatories  to  this  letter  decided  it  was  a  priority  to  communicate  our  expectations  relating  to  social  conflict  and  human  rights  and  that  APP  and  its  suppliers  meet  these  internationally  accepted  practices.  With  this  letter,  we  seek  to  provide  the  broad  outline  of  the  issues  and  steps  APP  and  its  suppliers  must  take  to  demonstrate  that  it  is  serious  about  implementing  statements  the  company  has  made  publicly  and  in  its  correspondence.  We  appreciate  that  APP  is  conducting  an  HCV  assessment  process,  testing  social  conflict  resolution  approaches  in  Senyerang  (Jambi)  and  Soreg/Sorek  (Riau)  and  has  contracted  Mazars,  however,  given  the  limited  scope  and  methodologies  of  these  initiatives  and  APP’s  history  of  broken  promises,  additional  actions  need  to  be  taken  to  show  that  the  company  is  genuine  and  sincere  about  addressing  its  harmful  social  and  environmental  record  and  avoiding  potential  future  harm.    We  believe  that  APP  needs  to  take  responsibility  for  the  social  and  environmental  problems  linked  to  all  the  wood  coming  into  its  mills  (both  from  natural  forests  and  pulp  plantations)  and  encompassing  its  entire  supply  chain.  We  ask  that  the  company  demonstrate  its  seriousness  in  addressing  these  problems  both  by  meeting  the  recommendations  made  in  the  letter  of  1  October,  2012  from  WWF  and  Greenpeace  and  by  meeting  the  recommendations  relating  to  social  conflict  and  human  rights  outlined  in  this  letter.  We  ask  that  APP  inform  its  suppliers  that  it  will  only  be  able  to  purchase  wood  from  them  if  they  follow  the  same  human  rights  and  environmental  commitments  that  we  suggest  APP  take  on  itself.      

 At  a  general  level,  we  urge  that  APP  inform  its  direct  (“owned”)  and  indirect  (“independent”)  suppliers  that  it  will  stop  purchasing  from  any  suppliers  that:    

• Do  not  respect  the  rights  of  affected  communities  to  the  ownership  and  control  of  their  titled  and  customary  lands  and  to  give  or  withhold  their  Free,  Prior  and  Informed  Consent  (FPIC)  to  proposed  developments  on  their  lands  as  expressed  through  their  own  freely  chosen  representatives;    

• Have  failed  to  resolve  social  conflict  and  human  rights  violations  with  affected  communities  to  the  mutual  satisfaction  of  affected  parties;  

• Evict  communities  with  land  claims  in  concessions  and  consider  CSR  activities  as  adeqate  and  final  resolution  of  conflicts      

• Do  not  place  a  moratorium  on  logging  and  natural  forest  clearance  until  High  Conservation  Values  have  been  identified  and  maintained,  and;  

• Continue  to  clear  and  drain  areas  of  peat  soil  or  convert  High  Carbon  Stock  Forest    In  preparing  a  standard  operating  procedure  (SOP)  for  respecting  the  right  of  communities  to  their  lands,  to  self-­‐representation  and  FPIC,  resolving  social  conflicts,  remediating  human  rights  violations,  and  for  identifying  and  maintaining  High  Conservation  and  Carbon  Stock  Values,  we  think  it  is  necessary  for  APP  to  distinguish  between:  1.  Areas  already  cleared  or  converted  to  pulp  plantations;  2.  Licensed  areas  with  remaining  forest  cover  and/or  peat  lands  and  yet  to  be  converted;  and  3.  Areas  planned  for  expansion  or  in  some  preliminary  stage  of  licensing.    In  this  letter,  we  set  out  what  we  believe  are  APP’s  responsibilities  as  well  as  the  actions  to  respect  human  rights  and  address  social  conflict  that  the  company,  its  affiliates  and  suppliers  (i.e.  “direct/owned”  and  “indirect/independent”)  must  take  to  conform  with  internationally  accepted  standards.  Meeting  the  preconditions  and  reaching  a  long-­‐term  agreement  would  entail  independent  assessment  by  mutually  agreed  assessors.    We  are  open  to  considering  APP’s  efforts  with  The  Forest  Trust  to  establish  processes  that  are  mutually  agreed  with  affected  parties  to  resolve  conflicts  in  Senyerang  and  Soreg  and  recommend  adding  Datuk  Rajo  Melayu  (Kampar,  Riau)  as  starting  points  for  designing  and  establishing  a  broader  process  that  would  also  include  the  following  pre-­‐conditions  for  constructive  engagement.      Below  we  have  elaborated  the  package  of  pre-­‐conditions  we  think  are  necessary  to  demonstrate  APP’s  sincerity  and  intent  regarding  social  and  rights  issues  in  italics.  We  have  also  articulated  the  other  conditions  we  think  are  required  for  APP,  affiliates  and  suppliers  (i.e.  direct/owned  and  indirect/independent)  to  demonstrate  responsibility  related  to  social  and  human  rights  issues  in  normal  text.  Together,  we  believe  these  form  a  package  or  “on  ramp”  for  the  company  on  social  and  rights  issues.      Specific:      APP  its  affiliates  and  fiber  suppliers  (i.e.  direct/owned  and  indirect/independent)  will:      

1. For  areas  already  cleared  or  converted:    

-­‐ Propose/provide  a  draft  Terms  of  Reference  (TOR)  for  social  conflict/rights  violation  assessment  process  to  letter  signatories,  incorporate  recommendations  on  TOR  from  letter  signatories  and  make  public  agreed  TOR  elements  

-­‐ Provide  public  access  to  information  and  process  of  implementing  social  conflict/rights  violation  assessments  and  resolution  processes      

-­‐ Consistent  with  agreed  TOR,  commission  credible  3rd  parties  to  conduct  conflict/rights  assessments  in  3-­‐5  areas  and  allow  broad  access  for  signatories  to  the  letter  to  monitor  and  advise  (note:  the  3-­‐5  areas  could  include  Senyerang  (Jambi)  and  Soreg  (Pelalawan,  Riau)  and  should  include  Datuk  Rajo  Melayu  (Kampar,  Riau))  

-­‐ Suspend  operations  and  wood  supply  from  areas  under  dispute  until  there  is  agreement  with  the  affected  communities  on  a  process  to  resolve  the  conflict/remedy  rights  violations  and  resolution/remedy  is  achieved.  

-­‐ Develop  and  implement  independently  verified  agreements  with  the  communities  that  resolve  conflicts/remedy  rights  violations  in  the  3-­‐5  areas  assessed  

-­‐ Commit  to  suspending  operations  in  this  manner  as  part  of  resolution/remedy  protocol    

-­‐ Make  available  draft  social  conflict  and  human  rights  resolution/remedy  protocol  that  will  be  used  following  the  assessments  and  incorporate  input  from  letter  signatories  (e.g.  on  process  and  elements)  and  make  agreed  protocol  publicly  available  

-­‐ Conduct  a  review  of  documents,  schematics  and  models  of  conflict  resolution  that  are  already  running,  and  develop  mechanisms  for  restoring  livelihoods  and  economic  support  for  affected  people      

2.  For  areas  yet  to  be  converted  (and  with  licenses)    

-­‐ Place  a  moratorium  on  logging  operations  and  wood  supply  from  these  areas  until  FPIC  process  including  recognition  of  land  rights  is  completed  and  make  public  commitment  to  suspend  mill  expansion  and  all  logging,  clearance,  peat  drainage  and  plantation  establishment  while  conducting  FPIC  and  until  community  consent  obtained  and  verified  by  credible  3rd  party  

-­‐ Propose/provide  draft  methodology  to  be  used  to  conduct  FPIC  process  and  incorporate  recommendations  provided  by  signatories  to  this  letter  and  affected  communities  and  make  agreed  methodology  public.  

-­‐ Establish  open  access  to  information  and  process  of  implementing  FPIC  to  affected  communities  and  other  stakeholders  

-­‐ Initiate  process  to  conduct  FPIC  using  agreed  methodology  in  3-­‐5  priority  communities/areas    

-­‐ Provide  list  of  suppliers  &  maps  of  concessions  with  natural  forest  cover/un-­‐drained  peatlands  and  with  names  and  locations  of  villages/settlements  in  these  areas  

-­‐ Establish  mechanism  that  provides  access  to  information  and  expert  advice  for  communities  involved  in  FPIC  process  

 3.  For  new  mills  or  areas  with  application  or  in  licensing  process  (i.e.  land  bank  expansion):    

-­‐ make  public  commitment  to  defer  further  steps  in  licensing  process  and  expansion  areas  until  titled  and  customary  lands  are  identified,  a  process  to  respect  FPIC  is  conducted  and  community  consent  obtained  and  verified  by  agreed  3rd  party  

-­‐ list  of  areas,  supplier  names  and  preliminary  concession  maps  in  licensing  process  or  planned  made  available  to  key  stakeholders  

-­‐ list  of  expansion  plans  and  new  pulp  and  chip  mills  that  will  supply  APP  mills  to  key  stakeholders  

 General:      APP  should  make  public  time  bound  statements  that  the  company,  its  affiliates  and  fiber  suppliers  will:      

-­‐ Invite  and  empower  a  group  of  credible  observers/reviewers  from  civil  society,  and  mutually  agreed  with  signatories  to  this  letter  and  other  key  stakeholders,  to  ensure  that  the  verification,  monitoring  and  management  of  high  conservation  and  high  carbon  stock  value  forests,  conflict/rights  violation  resolution  and  implementation  of  FPIC  is  carried  out  in  accordance  with  the  international  best  practices.    

-­‐ Acknowledge  and  respect  the  rights  of  indigenous  peoples  and  local  communities  (including  communal  rights  to  land  and  livelihoods)  affected  by  its  operations  and  its  wood  sourcing,  including  their  legal  and  or  customary  rights  to  land,  their  right  to  give  or  withhold  their  free,  prior  and  informed  consent  to  proposed  developments,  and  their  right  to  resolve  disputes  and  remediate  rights  violations  through  the  application  of  mutually  agreed  independent  resolution  mechanism(s)  to  address  existing  or  future  disputes  or  rights  violations.      

-­‐ Create  mechanism(s)mutually  agreed  with  affected  communities  to  provide  access  to  information  (e.g.  maps,  licenses,  permits,  etc.)  and  expertise  required  by  communities  to  understand  their  rights,  options  and  the  consequences  of  entering  into  processes  and  agreements  with  APP  aimed  at  resolving  conflicts  and  remediating  rights  violations,  preventing  new  conflicts  and  respecting  the  right  of  communities  to  FPIC.    

-­‐ Make  available  to  interested  parties  a  list  of  its  current  licenses  and  concessions  maps  and  of  its  3rd  party  suppliers  and  their  concession  maps,  including  names  and  locations  of  communities  in  or  bordering  concessions      

-­‐ Make  no  claims  regarding  APP’s  performance  relating  to  social  conflict  and  respect  for  human  rights  in  regard  to  particular  disputes,  conflicts  or  negotiations  without  prior  agreement  of  affected  communities.  

 We  hope  these  suggestions  are  useful  to  APP  in  creating  specific  goals  and  performance  benchmarks  relating  to  social  conflict  and  human  rights  in  its  sustainability  commitments  and  implementation  plan.      We  look  forward  hearing  the  company’s  response  and  answering  any  questions  you  may  have.      Regards  and  Best  for  the  New  Year,    Sincerely,    

 Hary  Oktavian  Executive  Director  (appointed)  Scale  Up    Andiko  Executive  Director  Huma    Deddy  Permana  Executive  Director  WBH    Marcus  Colchester  Director  Forest  Peoples  Programme    Lafcadio  Cortesi  Asia  Director    Rainforest  Action  Network    Rivani  Noor  Executive  Director    CAPPA    cc:    Robin  Mailoa  Aida  Greenbury  James  Kallman  Marzuki  Darusman  Philippe  Castagnac  Scott  Poynton  Bustar  Maitar  (Greenpeace  Indonesia)  Abetnego  Tarigan  (Walhi)  Aditya  Bayunanda  (WWF  Indonesia)  Muslim    Rasyid  (Jikalahari)  Raflis  (Transparency  International)  Hariansyah  Usman  (Walhi  Riau)    Abdon  Nababan  (Aman)