Social Contribution through Tree Planting Activities

Distribution of Free Seedlings and Buyback Guarantee as Logs

PT. Kutai Timber Indonesia (KTI) is a manufacturing subsidiary of Sumitomo Forestry in Indonesia. KTI manufactures plywood, particle boards and door components. This subsidiary has distributed a total of about 500,000 seedlings of fast-growing falcata (Albizia falcataria) trees, which can be harvested in about five years, free of charge to later buy the grown trees for use as FSC-certified wood. In order to increase the rate of wood procured from planted forests, KTI is working with local residents to establish a sustainable system to manage planted forests.

Also, Vina Eco Board (VECO), Sumitomo Forestry’s manufacturing subsidiary in Vietnam, continues to distribute seedlings produced by the company free of charge to local farmers. Every year, VECO distributes about 600,000 seedlings, mainly acacia seedlings, to the farmers and then buy the grown trees as logs at their market prices.

Acquiring Forest Certification in Cooperation with Local People

KTI has been working to build a system for sustainable planted forest management in cooperation with local afforestation cooperatives, thereby increasing the ratio of wood from planted forests to the total volume of wood used by the company as raw materials. KTI organized Koperasi Alas Mandiri KTI (KAM KTI)* as a forestation cooperative in cooperation with local people. In 2008, KAM KTI received FSC*-FM certification for 152 hectares of planted forests, and in 2017, Koperasi Bromo Mandiri KTI (KBM KTI)*, another forestation cooperative, received the same certification for 206 hectares of planted forests.
As of the end of 2025, KAM-KTI had 1,005 hectares of certified forests and KBM-KTI 1,330 hectares of certified forests, for a total of 2,335 hectares. The supply of logs from these forests to KTI has been continued. Going forward, KTI will increase the supply of FSC-certified timber, while strengthening the manufacture and sale of its products with high environmental value.

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