San Francisco - The world's two largest retailers, Walmart and Carrefour, acted today against Asia Pulp & Paper over Greenpeace report that claims the pulp and paper company is destroying rain forest in Indonesia, its home base.

A Walmart official said the company was in talks with Greenpeace, and a company official told Bloomberg that the firm's largest markets did not sell product from APP and that the firm also was looking at what measures might be taken vs APP regarding private brand products. APP is a good-sized supplier of private label tissue paper products.

A Carrefour SA Indonesia official told Bloomberg that the company halted purchases of APP products. Carrefour's business in Indonesia generated 887 million Euros in 2009 or 9% of the firm's 96 billion Euros in sales in 2009.

"Carrefour is committed to sustainable development and has decided to cease sourcing of APP supplies for private label products from mid-year this year until further notice." Carrefour Indonesia external communication mgr Hendri Satrio told The Jakarta Post in a letter.

Walmart, with 2009 sales of $405 billion, operates no stores in Indonesia. Walmart entered the market in Indonesia in 1996 but left after one of its stores was burned during rioting in 1997-98, contacts said.