Sustainable Forest Management

Reforestation Activities Contributing to the Society

Reforestation Activities Contributing to the Society

Distribution of Free Seedlings and Buy Back Guarantee of Logs

The manufacturing subsidiary PT. Kutai Timber Indonesia (KTI) in Indonesia and the manufacturing subsidiary Vina Eco Board Co., Ltd. (VECO) in Vietnam distribute seedlings free of charge to local residents with the guarantee that they will buy the logs as raw material at market prices after growth. In 2015, KTI's aforementioned operations were recognized by the Indonesia Ministry of Environment and Forestry and awarded the Minister's Prize for contributing to local communities by generating stable income while protecting communal societies as well as environments.
VECO also continues to distribute free seedlings produced by itself to farmers of local communities. Every year, we distribute about 500,000 seedlings to them, mainly acacia trees, and buy their grown logs at market prices.

Number of Seedlings Given to Local Communities

Company Name FY2023 result
KTI 540,000 trees
VECO 541,000 trees
Local KTI staff celebrate the Minister's Prize

Local KTI staff celebrate the Minister's Prize

Promoting Certification of Forests Together With Local Communities

KTI organized Koperasi Serba Usaha Alas Mandiri KTI (KAM KTI)*, which is a community forestation cooperative association. In 2008, 152 hectares of planted forest were FSC®-FM certified, and in 2017, 206 hectares of Koperasi Bromo Mandiri KTI (KBM KTI)*, another forestation cooperative, received the same certification. As of end of 2023, KAM-KTI had 1,005 hectares of certified forests and KBM-KTI had 1,330 hectares of certified forests, for a total of 2,335 hectares. Same as last year, supply of logs to KTI continues. We will increase supply of FSC-certified timber and at the same time further strengthen manufacture and sale of products with high environmental value.

* KAM KTI: FSC-C023796, KBM KTI: FSC-C133562

View of Planted Forest

View of Planted Forest

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