All of our production facilities are certified with the industry standards and in line with the needs of the pulp and paper industry, it is also able to meet the customers’ need for quality products

At APP, we understand that our products provide the opportunity to support our customers in achieving their sustainability goals and play a role in the global circular economy. Using only responsibly sourced, recyclable and renewable fibre, we aim to utilise increasing amounts of renewable energy and to minimise energy, water and waste intensities. We also aim to increase the range of products where we can demonstrate their low environmental footprint, and can offer alternatives to plastic based products.

A key focus at all of our mills is energy efficiency. Generating energy on site makes the most impact on our direct CO2 emissions. We use renewable fuels as much as possible, except for when it is not technically or commercially feasible. We have significantly reduced fossil fuel use at our integrated pulp and paper mills by utilising biofuel waste streams. The majority fuel of our integrated pulp & paper mills are renewable fuels, supplemented predominantly with coal and natural gas. 6% of our emissions are attributed to the purchase of energy.

Our energy intensity decreased 5% by the end of 2022 compared to a 2018 baseline, against our Vision 2030 target of 25%. By the end of 2020, we achieved a carbon intensity reduction of 13% compared to 2018 baseline, against a target of 30% in 2030. This was achieved predominantly by replacing fossil fuels with renewable fuels for energy generation. 59% of our energy needs are generated from renewable fuels, an increase 6% from our 2018 baseline year. 

We accomplished this by implementing a number of measures, such as increasing the efficiency of our Recovery Boilers (RB), utilizing sludge as a substitute fuel (Waste to Energy) and increasing the use of biomass. In addition, a number of our mills, including Tjiwi Kimia, have obtained Renewable Energy Certification, demonstrating our dedication to using renewable energy sources.
All of our mills are undergoing the approval process for solar panel installation to power their operations. At present, Indah Kiat Perawang, Indah Kiat Tangerang, and Tjiwi Kimia have a
total combined solar energy capacity of 18.6 MWp. Based on the results of this current phase, we plan to scale this project in Phase 2, potentially adding an additional capacity of 13.2
MWp.
All mill initiatives related to energy efficiency are registered and tracked as part of the Skill Development Activity (SDA) Program, which aims to enhance operational processes by reducing
energy consumption, increasing production efficiency, and minimizing environmental impact. The Olympic System (MBOS) Team oversees and monitors the SDA regularly.

Moving forward, we are seeking to find more opportunities to generate energy from renewable fuel sources to fulfill our goals as well as identifying other opportunities and new technologies to further reduce our energy intensity.

Water is a vital resource for our operations. We are constantly striving to reduce our water consumption through the use of the latest technology and initiatives. We apply the same ‘3R’ strategy to the resource of water as we do materials—reduce, reuse, and recycle. At the end of 2022, we had achieved a water intensity reduction of 16%, as compared to a 2018 baseline.

We also recognize that our responsibility to protect local water sources at all our mill sites. Therefore, we control our water intake and ensure that our water-discharge meets the highest environmental standards before it is returned to source.

Progress toward water usage efficiency is monitored and discussed at key departmental meetings across all mills. Our performance against targets is communicated to  the Management Board, which sets the direction of the topic for each reporting period. To ensure the sustainability of our  business and consider these risks, we have undertaken  programs specifically to reduce our freshwater usage. We continuously work to reduce our water consumption by implementing cutting-edge technology and initiatives.

Looking ahead, we will continue to invest in appropriate technology and process optimisation to further reduce the water usage intensity in our operation.

We are committed to minimising waste and maximising the opportunities to reuse waste materials through the ‘3R’ strategy—reduce, reuse, and recycle. This strategy helps us to maximise the value of resources at each life cycle stage. 

The majority of our waste is generated through onsite power production and the pulp and paper making process. To increase our energy efficiency, we turn byproducts such as black liquor, bark, and other residues into energy sources to replace the use of fossil fuels at our integrated pulp and paper mills. Furthermore, this means these by-products are diverted from landfill, which along with their use for the generation of power, and reduces the carbon footprint of our mills significantly.

Working closely with local governments, who issue the waste handling licenses we require to reuse a waste stream, we continue to look for suitable technologies or partners to provide us with such opportunities. We attempt to utilize our waste streams to produce value-added products such as bricks, pavement blocks and fertilizer for our forestry operation. In 2022, the amount of solid waste going to landfill was reduced by 1% compared to 2018. This reduction was accomplished through the implementation of waste utilization and maximization initiatives, in addition to efforts to reduce waste production at
our mills.

All of our mills maintain solid waste records and submit daily data to the government to identify opportunities for reduction and maximize resource utilization. We collaborate with local
governments and ensure compliance among third-party vendors to demonstrate responsible waste management. Our wastewater treatment process minimizes the use of river water, and we monitor hazardous waste to reduce waste output.

Our next big goal is to achieve zero solid waste to landfill. Our strategy to achieve this is through process improvement, as well as managing our waste under the circular economy concept, which may include installing new technologies.
 

Key to our vision looking ahead to 2030 is increasing our products biodegradability as well as the resource efficiency during the production process. This strategy is done to cater to the shifting concern of the market, particularly on plastic waste and resource scarcity.

Positioning paper as a substitute to plastic has been a key focus in our product development and innovation. Currently most of the paper-based packaging for food and drink in the market use plastic-based (PE) coating to ensure strength and durability. However, this PE coating is difficult to recycle and is not biodegradable. To address this, our product development team continue research for coating materials that enable the products to be biodegradable and easily recyclable, while at the same time maintaining the durability of the product when in use.

To further improve our resource efficiency, we are also looking into a more efficient use of virgin fiber in our products. This will be done in two-pronged approach, one of which is to increase the recycled content in our products, but still maintaining the product performance quality of those made from virgin fiber. The other approach is to reduce the use of virgin fiber in the products, while still also maintaining the existing product performance.

This move further support our goal to position paper products as one of the solutions to address the global environmental issue.

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