Publicis and Lowe both withdrew from a final shoot-out, leaving local shop Lemonade - which was eliminated in the first round, but was later invited back in - the sole contender.
Lowe was first to pull out. The IPG agency informed the client that a busy new business period, during which it has picked up Bajaj Auto, Bank NISP and OCBC Bank, prevented it from properly servicing another new client.
However, sources say Lowe was at odds with APP's environmental and human rights record, which is under close scrutiny from NGOs Greenpeace and WWF for alleged illegal logging in forests in Indonesia and China.
Publicis was next to withdraw.
The agency objected to a surprise re-inclusion of Lemonade in the final round following Lowe's departure.
Henry Saputra, the chairman and CEO of Publicis Indonesia, called the decision to invite Lemonade back in as "unfair."
The pitch is currently on hold because Dwi Dewi Permatasari, the head of APP's tissue business unit, is unwell.
Meanwhile, APP is believed to be searching for a PR network to tackle its poor image among environmentalists, particularly in the US and the UK.
