The report, by Eyes on the Forest, a group what includes Friends of the Earth and WWF Indonesia, claims that APP had been granted permission to build a highway in a protected area of Riau Province in Sumatra with the premise that the road would connect two remote villages.
However, the NGO insists that the road connects only APP logging centres.
In a statement, an Eyes on the Forest spokesman said: "It's shameful to see a multibillion dollar enterprise hiding behind the needs of desperately poor, isolated villages, who will receive no benefit from the road, and will most likely suffer the consequences of APP's activities."
Riau Province is an area of contiguous peatland forest which acts as a rich store of carbon and is home to the critically endangered Sumatran tiger.
APP would not respond to Media's calls and emails at press time. However the company is understood to be searching for a PR network to improve its image.
Meanwhile, a pitch continues for Paseo, a tissue brand produced by APP. Publicis, Saatchi & Saatchi, Lowe and local shop Lemonade are pitching for the US$1 million account.
