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.
VECO continues to distribute free seedlings produced by itself to farmers of local communities. Every year, we distribute about 600,000 seedlings to them, mainly acacia trees, and buy their grown logs at market prices.

Number of Seedlings Given to Local Communities

Company Name FY2024 result
KTI 513,000 trees
VECO 597,000 trees

Promoting Certification of Forests Together with Local Communities

KTI has been working to build a system for sustainable planted forest management in cooperation with local plantation cooperative associations to heighten the ratio of plantation wood used as raw materials. 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 2024, 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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