Sinar Mas Group

The Sinar Mas Group is one of the largest conglomerates in Indonesia. It was founded in 1962 by Eka Widjaja Tjipta and is now run by his family and has numerous subsidiaries, including, for example, Asia Pulp and Paper Company Ltd.. (APP ) (cell and pulp and paper), AFP ( agribusiness, food and real estate ), with offices in Indonesia, Malaysia, China and Singapore and SMMA ( financial services).

In the 1990s, a branch was established in India, which was sold in 2001 to Ballarpur Industries Limited.

Subsidiaries

Asia Pulp and Paper Company Ltd.. (APP )

Asia Pulp and Paper Company Ltd.. mt based in Singapore is the world's fourth largest producer of pulp and paper. APP was created in 1994 and provides pulp and paper in Indonesia, China and India here. Furthermore, APP include in these countries and in Singapore, the U.S. and Mexico packaging material factories. On all continents APP is represented with marketing offices. APP was considered a " small Indonesian miracle", as the company took little damage even in economically difficult times for Indonesia in 1997/98. Meanwhile, the economic strength of the company is, however, attributed the cheap exploitation of rain forests. So refers to the largest pulp and paper mill in Indonesia, Indah Kiat Pulp & Paper Tbk ( IKPP ) in Riau in Sumatra, which is located at approximately 58 % owned by the APP, about 70 % of the required trees from rain forests. This at least 300,000 hectares of rainforest have been destroyed in recent years. This led, among other things, that saw exposed in the UK a boycott APP. Although the company set a goal to use only wood from plantations; However, the implementation is difficult because the terrain needed for this is also claimed by the indigenous population. For this reason, it came in February 2001, clashes between members of the Saday - people and security personnel of a logging company.

1995 APP was admitted to the New York Stock Exchange; trade, however, was set on 4 April 2001. The company now has total debt of $ 13.4 billion, making it the höchstverschuldetste Asian companies. The reason for this was mainly in lending by foreign banks, which in this case left it because of the enormous growth of APP to lack of care. Among the financiers of IKPP time included the German Bank, Commerzbank, Dresdner Bank, Berliner Handels- and Frankfurter Bank, Bank Austria, Bankers Trust, IKB German industrial bank, Landesbank Schleswig -Holstein and the North German Landesbank. The Hermes credit insurance also granted various export credit guarantees. Shares were then purchased by the German Bank Asset Management, Postbank, DWS Investments and Zurich Scudder Investments.

Asia Food & Properties Ltd.. ( AFP)

AFP is listed on the Singapore Exchange Securities Trading Limited (SGX -ST) and active in the three areas of agribusiness, food and property in Indonesia, China, Malaysia and Singapore.

Sinar Mas Multiartha Tbk ( SMMA )

SMMA (formerly internals Artha Leasing Company ) was founded in 1982 as a holding company for the Sinar Mas Group. The focus of the company is in the financial sector ( banking, insurance ) and professional services (IT).

Smart Tbk ( Smart)

Smart is a company founded in 1962 from the palm oil industry in Indonesia, which produces cooking oil, margarine and shortening. The company sells the brands Filma, Kunci Mas, Mitra, Palm Boom, Palm Vita, Menara, Pusaka, Delicio, Delicio White, Delicoa 38 Good Fry and Palmmita. Currently managed smart an area of ​​110,000 hectares.

Sinar Mas Developer and Real Estate Division ( SIMASRED )

The Sinar Mas Developer and Real Estate Division ( SIMASRED ) is an Indonesian company that was founded in 1988. It consists of over 80 companies that serve architecture, real estate and related areas worldwide projects in the field of construction.

Subsidiaries:

Bumi Serpong Damai

PT Plaza Indonesia Realty Tbk

As well as:

• Kota Delta Mas
• KIIC Industrial Estate

Commitment to charity

Since 2005, the Sinar Mas Group donated in China in Hainan province 20 million yuan for the common good. Zhiyuan Huang, CEO of Sinar Mas, the provincial government said on March 28, 2005, when the subsidiary Jin Hai Pulp and Paper Company began operations, for the next five years 50 million yuan to the " Hainan Sinar Mas Education and Environmental " to establish Protection Foundation. This foundation has since supported according to the company rebuilding on site and provided funding for the Regional forestry and environmental protection agencies. The end of 2005 donated the Sinar Mas Group, another million yuan to the Hainan University for a student aid fund, which was launched under the name " Huang Yicong Student Aid Fund" in September 2006 and is named after the founder of Sinar Mas. Therefore, the support for students was extended to all major towns in which an APP branch is located. End of March 2007 the total amount of donations in China amounted loud Jiesheng Huang, assistant to the chief executives of APP China, 270 million yuan.

Criticism

The Worldwatch Institute threw APP ago, with the donations to purchase the goodwill of the policy makers. Thus, the process have been initiated for illegal logging in China. In 2006 the company Hengyuan Li, the vice president of government environmental organization All- China Environmental Federation ( ACEF ) invited to visit his production. A few months later, APP was praised by the ACEF for his efforts to protect the environment, the branch factory in Suzhou as a model of an integrated tree, pulp and paper project and as a solution to the problem of shortage of pulp raw material, the lack of infrastructure and pollution control technology in the paper manufacturing industry was called in China.

Even in 2005 the ACEF, however, had supported the boycott decision of the Hotel Association of Zhejiang in terms of products of APP and the Association even offered to assist him in a libel trial, which had been initiated by APP. Li explained the change in strategy from 2006 so that the ACEF was initially not have been fully aware of the role of APP in environmental destruction in China, since they had received most of their information from environmental groups, who opposed the company critical. However, after its own investigation had been initiated, it had come to the conclusion that the verdict was incomplete and subjective. " We gave the company time an award for its environmentally friendly paper products to restore his reputation ," Li

The Sinar Mas Group is also accused of destroying the rainforest in Indonesia through its subsidiary APP by the construction and operation of paper mills. The cultivation of oil palm plantations in Sumatra has been criticized by the local population. So Sinar Mas had promised the farmers there to plant an area of ​​six hectares with oil palms, which can cover these their own use should. In fact, however, 600 acres were cleared. Moreover, since the only part of the oil press Sinar Mas region, the farmers were forced to leave their harvest at a low price to the Group to sell.

According to the company, Unilever and Kraft Foods announced in March 2010, the food company Nestlé cooperation with the Smart Tbk on after her violation of international standards and Indonesian law, participation in land conflicts and the clearing of rain forests has been accused by Greenpeace. After Greenpeace the company Mont Blanc and Tchibo informed about large-scale forest clearing, this instructed their suppliers to terminate the cooperation with APP. The Adidas company, Carrefour, Metro, Tesco and Mattel turned away from the company.

The actions of Greenpeace led to the company announcing that it would no longer want to clear the rainforests of Indonesia.