Asia Pacific Resources International Ltd. - part of an Indonesian multi-industry corporation

APRIL (Asia Pacific Resources International Ltd.) is part of an Indonesia-based Raja Garuda Mas -multi-industry corporation (RGM). APRIL is registered in Singapore, and its holding company, Asia Pacific Resources International Holdings in Bermuda.
The founder and largest owner of Raja Garuda Mas is Harvard educated Mr Sukanto Tanoto (Tan Kaung Ho). He, like many leading business men in Indonesia, belongs to the minority of Indonesian Chinese people. Sukanto Tanoto comes from Northern Sumatra. In 1994 the Tanoto family was the 24. richest in Indonesia.

Raja Garuda Mas -group is managed by RGM International (RGMI) owned by Sukanto Tanoto. RGMI includes four lines of business. These comprise forest industry, agrobusiness, construction-, machinery and mining industry and bank and insurance operations. RGM-group operations are concentrated in Indonesia. In September 1997 the group employed some 56 000 people and its total property was estimated to be about EUR 3 700 million before the Indonesian rupiah decreased in value.

Food products business line owns some 200 000 hectares of oil palm, cocoa and rubber plantations. It consists of palm oil company Indosawit owned by Asian Agri, Asian Agro Lestari and oil processing company Asian Agro Agungjaya. Operations are concentrated in Sumatra and the headquaters of the business line are in Medan, Northern Sumatra. The plantation activities are to be expanded even to the Philippines.

The operations of the Hong Kong-based PEC-Tech vary from construction industry to power plants and mining. E.g. Unibank in Indonesia, insurance company Eka Lloyd and real estate company Uniland are also part of the RGM group.

 

Forest industry - APRIL and RGM Panel

The main forest industry companies of RGM group are APRIL and RGM Panel. The latter operates in plywood and sawmilling industry. Its wood procurement is based on selective logging in natural forests. RGM Panel and APRIL are in close association with each other for example in Riau, as well as other parts of RGM group, e.g. Indosawit, who makes results in oil palm plantations.

The core part of APRIL are two Sumatra-based pulp mills and two paper mills, one of which is located also in Sumatra and the other one in China. Additionally, APRIL owns viscose manufacturing plants linked to the Northern Sumatra pulp mill and Säteri Fibres Oy in Valkeakoski, Finland. Säteri was purchased from Finnish Kemira in June 1997.

In 1997 APRIL was the 5. largest viscose producer in the world. In December 1998 a plan to form its own company out of now APRIL-owned Indorayon was released in December 1998. However, the Tanoto family entitles APRIL to exercise its voting rights (51 % of total share number) in Indorayon til 2001.

 
APRIL's Riau Mill

The construction of APRIL's pulp factory in Riau (PT Riau Andalan Pulp and Paper, or RAPP) started in Kerinci near the provincal capital Pekanbaru in 1992. The pulp mill began production in 1995 and at the same time clearcutting and planting of lands hired by APRIL got underway. The first paper machine started in 1998. In the middle of 1998 the pulp mill was producing at the rate of some 750.000 tpy and the paper mill 280.000 tpy of uncoated wood free paper.

In Riau APRIL has 285 000 ha of concessions in two agreements with the government of Indonesia. Seventy percent of planted areas (about 80 000 ha) has thus far been forested. The net plantable area is estimated to be 172 000 ha. The pulp mill uses wood from rainforest clearcut in and outside APRIL's concessions. Raw material supply of the pulp mill is based on wood from natural forests until 2008 according to own estimates of the company.

  Indorayon chronology: Tanoto in pulp business

1983 the Indorayon pulp and viscose mill planned for Porsea, North Sumatra

1987 land disputes at Sugapa begin

1987 and 1989 land slides caused by Indorayon road construction, 30 locals killed

1988 the mill starts operating, waste water leak

1989 Indorayon sued by Indonesian citizens' organisations because of lack of the assessment of environmental effects

1989 commercial production starts

1989 land slide killing 13 people

1991 rayon/viscose plant added

1993 explosion of chlorine tank - new protests

1998 months of protests against pollution, logging and land robbery, factory closed down by road blocks

1999 protests continue, president Habibie closes down the mill due to environmental problems, mill still down in October

 

 

 

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