A company supplier of raw materials for paper producer Asia Pulp and Paper (APP) is expected failed to meet production targets due to the burning of thousands of acacia land ready for harvest in Ogan Komering Ilir, South Sumatera. One of them is PT Bumi Andalas Permai (BAP).
Head of the Division of External Relations BAP Iwan Setiawan said that although figures have not been calculated for certain losses, it is estimated by naked eye that it have a huge impact because nearly 90 percent of owned land had been burned.
"PT BAP has a land area of acacia reached 192 thousand hectares (ha) and almost 90 per cent burned in forest and land fires this year. At the moment it cannot be assured how much the value because there are still embers on the soil and can not be stepped on," he said in Jakarta, as written on Friday (10/30/2015).
According to him, since the beginning of PT BAP along with five other companies, such as PT Bumi Blooms Green, PT unvarying Earth Andalas, and three other companies located in Banyuasin, South Sumatra, PT Rimba Hutani Gold, PT Bumi Persada Permai, and Tripupa Jaya projected to meet the demand of PT OKI Pulp and Paper, a subsidiary of APP in Ogan Komering Ilir.
OKI Pulp and Paper company is targeted to start operating in April 2016 with expected supply as much as 3 million tons of pulp, then to 6 million tons of pulp in the next three months from the five companies.
However, fires are entering the concession area since 9 September has burned thousands of hectares of acacia ready to harvest. While, in one hectare alone could produce 200 cubic acacia, whereas 1 tonne of pulp requires about 4 tonnes of acacia wood.
"Contributions PT BAP alone is expected 40 percent of the needs of the OKI Pulp & Paper. But with this condition, it will obviously be difficult to achieve," he said.
According to Iwan, production is not only that was fail to be achieved, but also the emergence of the threat of termination of employment (PHK). PT BAP noted to have a labor numbering about 700 people who were previously projected for the stages of planting, maintenance and harvesting.
"If it had been on fire like this, what should be harvested. While in this acacia plantation business, labor for harvesting are much needed," he said.