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APP’S CoMMITMENT:
      CoNSERVATION BeYOND CoMpliance
         sia Pulp & Paper Co. Ltd. (APP) is committed to protecting high conservation value forests. It’s a commitment that is an core value

A        of our Sustainable Forest Management Program. And it’s why APP engages and works closely with a variety of key stakeholders, such
         as the national government and credible conservation organizations, on the identification, verification, and management of conservation
areas -- so that we can ensure the sustainability of forest areas of high conservation value for future generations.

                   40% for Conservation, 3% for Pulpwood.
                     It’s a fact. Just 3% of the total forest area in Indonesia has been designated for pulpwood farms. And that 3% consists of
                       the least valuable forests and other wastelands. The government’s Spatial Planning Policy has identified the most valu-
                        able forest areas, and has set aside 40% of Indonesia’s forest as permanent, natural forest conservation areas. These
                        set-asides are designed to ensure the conservation of biodiversity, endangered flora and fauna, ecology, and nature
                        services, as well as to protect the cultural identity and meet the basic needs of local communities.

                       There’s more. The 3% of the forest that is designated to become pulpwood farms is further subjected to a number of rig-
                     orous biodiversity assessments. This process identifies and sets aside at least 30% of the pulpwood land as high conser-
                 vation value forests, community forests, local species development forests, and related infrastructures. In addition, APP con-
ducts an additional high-conservation-value assessment prior to making a final determination of the areas that will be used for pulpwood farms
and those that will be conservation set-asides.

It’s important to note that set-asides only preserve high conservation values when they are properly managed, and when those management
programs are adequately staffed and funded. We take pride that APP’s conservation set-aside efforts are built around robust, well-developed
management plans, are well-funded, and are implemented by thoroughly trained personnel.

Answering the Call of the Sumatran Tiger.
The Sumatran Tiger is in critical danger. Once lord of the jungle throughout the island of Sumatra in Indonesia, the tiger population has plum-
meted to about 350, as tiger poaching and trading in tiger parts take their bloody toll.

APP has joined forces with forest concession holders, the Indonesian Ministry of Forestry, local
Governments and the Sumatran Tiger Conservation Program to create and help fund the Senepis-
Buluhala Tiger Conservation Area. This 100,000 hectare-plus reserve, situated in the Senepis
forests of northern Riau, contains one of the highest densities of tigers in Sumatra. Avoiding human-
tiger conflict – and saving the lives of both – will be a primary goal of the reserve’s collaborative
management team.                                                                                                                    Copyright STCP 2005

Giving the World’s Smallest Fish a Fighting Chance.
Conventional wisdom holds that, due to their inhospitable environments, peat swamp forest ecosystems could not possibly harbor many
species. In fact, quite the opposite is proving true. Peat swamp forests have high aquatic and terrestrial biodiversity. And APP thinks that is
                                             worth protecting.

                                            In collaboration with the Riau Forest Department, APP is moving forward with plans to establish the
                                            Riau Biosphere Reserve, under the auspices of UNESCO. The proposed reserve will encompass an
                                            area of about 800,000 hectares, of which some 172,000 are conservation forests. The Biosphere
                                            Reserve will be unique due to is inclusion of a large swath of pristine peat swamp forest, and will
                                            have a high level of flora and fauna diversity. Just how high will be revealed in further studies.

                                            The Riau Biosphere Reserve Management Plan project calls for studies that will help APP better man-
age the hydrology of the entire area, and to identify and protect rare and endangered species, including the Storm Stork, False Gharial, Asian
Tapir, and [SPECIES NAME], the world’s smallest fish, which has already been found in a nearby ecosystem. Conducting such studies is part of
the way APP does business.

As part of our intensive conservation efforts, APP assesses habitats, biodiversity, and community significance of all of its forest conces-
sions in Indonesia. We also go beyond our legal obligation to suppress fires on our lands, and maintain world-class fire-fighting resources,
including fire-fighting helicopters, which are made available to both the government and the communities in times of need. APP has put sophisti-
cated “chain-of-custody” systems in place to ensure that no illegal wood enters our mills, and we have implemented illegal-logging-prevention
programs, based on a multi-stakeholder approach, to create public awareness and to provide alternative livelihoods for local communities.

Why do we do it? APP believes that the protection of endangered species and the conservation of biodiversity are key tenets of responsible for-
est management. And sustainable, responsible forest management is, simply, good business.

As users of the forest, we have an obligation to be good stewards of the forest and all that dwell in it. As an international leader in our sector,
we are unique in our ability to call upon the scientific, intellectual, and financial resources necessary to really make a difference. For the
Sumatran Tiger. For the White-Winged Duck. For the Sumatran Elephant. And for Indonesia’s forests as a whole.

To learn more about APP’s expanded conservation initiative, visit our website at www.asiapulppaper.com.

                                                                                                                         The Sumatran Tiger Conservation
                                                                                                                         Program is a long-term conservation
                                                                                                                         collaboration between the Indonesian
                                                                                                                         Department of Forestry, the Sumatran
                                                                                                                         Tiger Trust (UK) and The Tiger
                                                                                                                         Foundation (Canada).

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Draft App Env Ad July 06 Confidential

  • 1. APP’S CoMMITMENT: CoNSERVATION BeYOND CoMpliance sia Pulp & Paper Co. Ltd. (APP) is committed to protecting high conservation value forests. It’s a commitment that is an core value A of our Sustainable Forest Management Program. And it’s why APP engages and works closely with a variety of key stakeholders, such as the national government and credible conservation organizations, on the identification, verification, and management of conservation areas -- so that we can ensure the sustainability of forest areas of high conservation value for future generations. 40% for Conservation, 3% for Pulpwood. It’s a fact. Just 3% of the total forest area in Indonesia has been designated for pulpwood farms. And that 3% consists of the least valuable forests and other wastelands. The government’s Spatial Planning Policy has identified the most valu- able forest areas, and has set aside 40% of Indonesia’s forest as permanent, natural forest conservation areas. These set-asides are designed to ensure the conservation of biodiversity, endangered flora and fauna, ecology, and nature services, as well as to protect the cultural identity and meet the basic needs of local communities. There’s more. The 3% of the forest that is designated to become pulpwood farms is further subjected to a number of rig- orous biodiversity assessments. This process identifies and sets aside at least 30% of the pulpwood land as high conser- vation value forests, community forests, local species development forests, and related infrastructures. In addition, APP con- ducts an additional high-conservation-value assessment prior to making a final determination of the areas that will be used for pulpwood farms and those that will be conservation set-asides. It’s important to note that set-asides only preserve high conservation values when they are properly managed, and when those management programs are adequately staffed and funded. We take pride that APP’s conservation set-aside efforts are built around robust, well-developed management plans, are well-funded, and are implemented by thoroughly trained personnel. Answering the Call of the Sumatran Tiger. The Sumatran Tiger is in critical danger. Once lord of the jungle throughout the island of Sumatra in Indonesia, the tiger population has plum- meted to about 350, as tiger poaching and trading in tiger parts take their bloody toll. APP has joined forces with forest concession holders, the Indonesian Ministry of Forestry, local Governments and the Sumatran Tiger Conservation Program to create and help fund the Senepis- Buluhala Tiger Conservation Area. This 100,000 hectare-plus reserve, situated in the Senepis forests of northern Riau, contains one of the highest densities of tigers in Sumatra. Avoiding human- tiger conflict – and saving the lives of both – will be a primary goal of the reserve’s collaborative management team. Copyright STCP 2005 Giving the World’s Smallest Fish a Fighting Chance. Conventional wisdom holds that, due to their inhospitable environments, peat swamp forest ecosystems could not possibly harbor many species. In fact, quite the opposite is proving true. Peat swamp forests have high aquatic and terrestrial biodiversity. And APP thinks that is worth protecting. In collaboration with the Riau Forest Department, APP is moving forward with plans to establish the Riau Biosphere Reserve, under the auspices of UNESCO. The proposed reserve will encompass an area of about 800,000 hectares, of which some 172,000 are conservation forests. The Biosphere Reserve will be unique due to is inclusion of a large swath of pristine peat swamp forest, and will have a high level of flora and fauna diversity. Just how high will be revealed in further studies. The Riau Biosphere Reserve Management Plan project calls for studies that will help APP better man- age the hydrology of the entire area, and to identify and protect rare and endangered species, including the Storm Stork, False Gharial, Asian Tapir, and [SPECIES NAME], the world’s smallest fish, which has already been found in a nearby ecosystem. Conducting such studies is part of the way APP does business. As part of our intensive conservation efforts, APP assesses habitats, biodiversity, and community significance of all of its forest conces- sions in Indonesia. We also go beyond our legal obligation to suppress fires on our lands, and maintain world-class fire-fighting resources, including fire-fighting helicopters, which are made available to both the government and the communities in times of need. APP has put sophisti- cated “chain-of-custody” systems in place to ensure that no illegal wood enters our mills, and we have implemented illegal-logging-prevention programs, based on a multi-stakeholder approach, to create public awareness and to provide alternative livelihoods for local communities. Why do we do it? APP believes that the protection of endangered species and the conservation of biodiversity are key tenets of responsible for- est management. And sustainable, responsible forest management is, simply, good business. As users of the forest, we have an obligation to be good stewards of the forest and all that dwell in it. As an international leader in our sector, we are unique in our ability to call upon the scientific, intellectual, and financial resources necessary to really make a difference. For the Sumatran Tiger. For the White-Winged Duck. For the Sumatran Elephant. And for Indonesia’s forests as a whole. To learn more about APP’s expanded conservation initiative, visit our website at www.asiapulppaper.com. The Sumatran Tiger Conservation Program is a long-term conservation collaboration between the Indonesian Department of Forestry, the Sumatran Tiger Trust (UK) and The Tiger Foundation (Canada).