THE FORESTS DIALOGUEMARCH 2007

Jouko VirtaPresident, APRIL Global Fiber Supply

Intensively Managed Planted ForestsIntensively Managed Planted ForestsIndustry PerspectiveIndustry Perspective

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Jangan Biarkan HutanMenjadi Tinggal Kenangan

Jaga dan Lestarikan HutanUntuk Masa Kini dan Masa Depan

Managing resources to meet conservation, social and economic needs of today’s society

without compromising future generations

Building the Capability

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• To stop the degradation of forest resources due to illegal logging, encroachment & shifting cultivation responsible management intervention and investment with balanced approach is needed

• Mosaic Plantations create:1. Diversified landscapes to secure the ecosystem services for society2. Win-win solution for people, environment and economic development (3Ps)

Active Intervention with Balanced Approach –Solution to the Problem

Active Intervention with Balanced Approach –Solution to the Problem

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Tree Growing – An Opportunity for IndonesiaRelative Abundance of LandAbundance of Land

PhotosynthesisPhotosynthesis

Solar EnergySolar Energy COCO22

Ample RainfallAmple Rainfall

Favorable TempFavorable Temp

Soil NutrientsSoil NutrientsFiber for Fiber for Industry/Industry/BiomassBiomass

CLEAN Production ‘Machinery’

SocioSocio--EconomicEconomic

DevelopmentDevelopment

27 Ton/Ha/a

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Indonesia’s Competitive Advantage

APRIL operates with one decade of experience at an average 30 m3 sub/ha/a level, Brazilian competitors operate after several decades of experience at an average 50 m3 sub/ha/a level. APRIL sees great potential to increase the MAI and the cost competitiveness over time.

(In m3 sub/ha/year)

MAI - Mean Annual Increment is the annual average growth/Ha over the full rotation period. We measure MAI as m3 sub/a of merchantable wood volume

Typical Pulpwood Stumpage costs

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Mosaic Plantation ConceptMosaic Plantation Concept

• Planet – Conserving biodiversity and preventing environmental degradation

• People – Providing opportunities for social development & poverty alleviation

• Profit – Ensuring a steady supply of renewable, high-quality & low-cost fiber

A strategy for managing forest resources into sustainable plantations that balances commercial, environmental and social development needs

Balancing all three imperatives is key to our long-term survival and success

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Mosaic HTI Plantations Mosaic HTI Plantations ––Solution to Production Forest DegradationSolution to Production Forest Degradation

Natural ForestNatural Forest Degraded Degraded Natural ForestNatural Forest

Non HCVNon HCV

BelukarBelukar

Non HCVNon HCV

Plantations form healthy and vigorous mosaic landscapes to consePlantations form healthy and vigorous mosaic landscapes to conserve biodiversity, rve biodiversity, provide ecosystem services and create wealth for the societyprovide ecosystem services and create wealth for the society

ReforestedReforestedReforestedReforestedProtected by MosaicProtected by Mosaic

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Mosaic Plantations Creating Diversified Landscapes

Mosaic Plantations Creating Diversified Landscapes

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S.Singingi

Bt. Tapi

S.Lembu Jernih

S. Kalisin

S.Kalisin S.Mentorong

Petai

Koto Baru

Kebun Lado

Muaralembu

101°10'0"E

101°10'0"E

101°13'30"E

101°13'30"E

101°17'0"E

101°17'0"E

101°20'30"E

101°20'30"E

0°31

'0"S

0°31

'0"S

0°27

'30"

S

0°27

'30"

S

0°24

'0"S

0°24

'0"S

0°20

'30"

S

0°20

'30"

S

0°17

'0"S

0°17

'0"S

0°13

'30"

S

0°13

'30"

S

1:100,000Riaufiber - Logas South Estate

Plantation estate

Encroachment (Inoperable)

L E G E N D

Conservation

Roads

Hydrology

!. Sector Office

Rivers

8,429 ha

5,685 ha

20,159 ha

T o t a l 34,273 ha

! Village

Plantation estate

Encroachment (Inoperable)

L E G E N D

Conservation

8,429 ha

5,685 ha

20,159 ha

T o t a l 34,273 ha

What would be left out of the Logas Production Forest Estate without HTI plantation intervention?

HTI Plantations Defending the Production Forest Estate in Logas

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Mosaic Plantations Protecting Conservation Area

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Mosaic Plantations Settling the Land Claims

HCVF in HCVF in SiakSiak Raya/Raya/NusaNusa WanaWana RayRay

HCVF in HCVF in SiakSiak Raya/Raya/NusaNusa WanaWana RayRay

Conservation AreaConservation Area

Forest EncroachmentsForest EncroachmentsIn Permanent Forest EstateIn Permanent Forest Estate

TesoTeso EastEastOfficeOffice

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Our Overriding VisionOur Overriding Vision

Responsibly managed HTI forestry in Indonesia provides one of the

few options for reducing, possibly reversing in places, the

undeniable trajectory towards the continued destruction of natural

forest and deterioration of protected areas

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• Social mapping and third party audited land claim resolution process to resolve the conflicts.

• HCVF assessment to delineate and protect HCV areas.• Mosaic Plantations to secure the ecosystem services (and

hydrology on the low lands) and to stop the loss in biodiversity.

• Creates significant alternate employment and wealth in rural areas, creating 35 permanent jobs/100 Ha reforested and significant income streams, like 1 million USD/day in Kerinci today for local community.

• Certified (LEI) sustainable forest management standard.

Forest Areas under Mosaic Plantation Management are not Forest Lost, but Forest Enhanced

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Responsible IMPF Management

Thank you!