Post on 20-Mar-2019
Abbreviations
APHI Asosiasi Pengusaha Hutan Indonesia (Indonesian Forest Concession Holders Association)
CoC Chain of Custody
CW Controlled Wood
FSC Forest Stewardship Council
GFTN Global Forest & Trade Network
IDH Sustainable Trade Initiative
IWPA International Wood Products Associations
PT Perseroan Terbatas (Limited Liability Company)
TBI The Borneo Initiative
TFF Tropical Forest Foundation
TFT The Forest Trust
TNC The Nature Conservancy
WWF World Wildlife Fund
visit the website www.theborneoinitiative.org June 2015
The Borneo InitiativeWith this public version of the 2014 annual report,
The Borneo Initiative (TBI) aims to inform a broader
public about its work. This version is fully based on
the annual report as externally audited and appro-
ved by KPMG.
TBI is a foundation established in 2008, with offi ces
in The Netherlands, Indonesia and the USA. Our
mission is to prevent the loss of tropical forests due
to deforestation and over-exploitation.
Our target is to contribute directly to the increase of
FSC® certifi ed natural forest areas in Indonesia, from
a base of 1.2 million hectares in 2009 to 5 million ha
by the end of year 2015 i.e. a contribution of 4
million ha extra FSC-certifi ed. In a subsequent phase,
if new funding can be accessed, we aim to expand
our coverage to 6 or 8 million ha as from year 2016.
Our primary focus is the Indonesian part of Borneo
(Kalimantan), but we also keep open the option to
extend our support into other regions, like Papua
and Moluccas, and neighbouring countries, like
Papua-New Guinea and Malaysia. We link up players
at either end of the marketing chain whose coopera-
tion is required to make certifi cation a success: wood
suppliers in Indonesia and end users in FSC markets
e.g. Europe or the USA.
We offer forest concessions support via funding,
transfer of know-how and market linkages. We
provide a 2 to 3 $/ha subsidy to forest concessions
to cover part of the costs of the certifi cation of forest
management.
Our principal advisors and partners in this initiative
are APHI and WWF. Partner organisations TFF, TFT,
GFTN, TNC and Wana Aksara offer coaching to the
forest concessions and also dedicate their own
resources into the process.
Looking back and aheadSince 2010, we have signed support agreements
with 46 forest companies, together covering 4.7
million ha. This implies a potential coverage well
above the initial target of 4 million ha. However, not
all of these support agreements were continued:
up to December 2014, 6 companies terminated their
support agreements prematurely (542,000 ha
involved), while another 4 early resignations are
expected in year 2015. Combined with the expected
resignations in 2015, these will reduce our scope by
some 1.4 million ha.
Nevertheless we are confi dent that in 2015, at least
a group of 12 forest concessions can achieve either
CW or full FSC certifi cation (709,000 ha) and a
remaining group of 16 (1.5 million ha) can do so in
2016.
Forest Certifi cationIn 2014 we signed no support agreements although
we saw the early resignation of 1 company (48,420
ha). In sum, a total portfolio resulted of 40 forest
concessions with altogether 4.2 million ha.
We added 1 FSC certifi cate: PT Carus, 72,170 ha.
This leads to a total of 12 forest concessions
(1,311,915 ha) that achieved full FSC certifi cation
with our support. Plus 2 forest concessions that
achieved CW (90,455 ha). Together 1,402,370 ha;
of this, an area of 1,253,470 ha is in Indonesia and
148,900 ha in PNG.
With the FSC certifi cation of PT Carus Indonesia, and
the forthcoming incorporation of forest concessions
into the program in 2015, an inter-connected block
of sustainably managed forests in Central Kali-
mantan is created – see fi gure below. These forests
offer both a buffer for a core protected area, and an
expanded range area for endangered species,
orang-utans in particular. Thus, a tangible contribu-
tion to the concept of a green Heart of Borneo.
Achievements 2014 in brief
- We support 40 forest concessions with 4.2 million
ha, of which 12 have earned full FSC certifi cates
and 2 Controlled Wood (CW) certifi cates,
together covering 1.4 million ha.
- 300,000 ha set-aside for full protection.
- 1.3 million ha range area for iconic and
endangered species.
- 1 new forest concession with FSC certifi cation
in 2014, 12 overall since 2010.
Baseline 2010:
10 forest management units with 1,201,265 ha
Target 2014:
19 companies FSC certifi ed (1.7 million ha)
Actual contribution:
12 companies with 1,311,915 ha FSC certifi ed and
2 companies with 90,455 ha CW certifi ed.
FSC concessions in Central Kalimantan
Support agreements signed: 4,714,647 ha.
Early exits: -541,972 ha.
Portfolio size December 2014: 4,172,675 ha.
Early exits foreseen 2015: -840,125 ha.
Expansion of support agreements 2015: 324,922 ha.
Expected portfolio size December 2015: 3,657,472 ha.
PT Dwimajaya utama and PT Carus Indonesia Landscape map
Legend
FSC Certifi ed Consessions
FSC In Progress Consessions
Other Logging Consessions
Candidate Group 8
Orang Utan Sightings
Timber Plantations
Conservation Zone
Forest Cover
Non Forest Cover
Source
1. Natural forest concessions from Ministry
of Forestry 2011
2. Timber plantations from Ministry of Forestry
3. Forest cover from WWF Modis 2011
4. Conservation zone from WWF 2011
5. Agricultural Plantations from WWF 2011
Map
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ID Company name Area (ha) Entry year Location
1 PT Suka Jaya Makmur 171,340 2010 West Kalimantan
2 PT Belayan River Timber 97,500 2010 East Kalimantan
3 PT Roda Mas Timber 69,330 2010 East Kalimantan
4 PT Sarmiento Prakantja Timber 216,580 2010 Central Kalimantan
5 PT Indexim Utama 52,480 2010 Central Kalimantan
6 PT Narkata Rimba 41,540 2010 East Kalimantan
7 PT Kemakmuran Berkah Timber 82,810 2010 East Kalimantan
8 PT Dwimajaya Utama 127,300 2010 Central Kalimantan
9 PT Ratah Timber 97,690 2010 East Kalimantan
10 PT Gema Hutani Lestari 148,450 2010 Maluku
11 PT Wapoga Mutiara Timber Unit II 169,170 2010 Papua
12 PT Rizki Kacida Reana 55,150 2011 East Kalimantan
13 PT Wukirasari 116,320 2011 West Papua
14 PT Mamberamo Alas Mandiri 677,310 2011 Papua
15 PT Sari Bumi Kusuma Delang 60,700 2012 West Kalimantan
16 PT Gunung Gajah Abadi 74,980 2012 East Kalimantan
17 PT Inhutani I Meraang 70,700 2012 East Kalimantan
18 PT Adhi Mitra Lestari 52,100 2012 East Kalimantan
19 PT Wanasokan Hasilindo 49,000 2012 West Kalimantan
20 PT Graha Sentosa Permai 44,970 2012 Central Kalimantan
21 PT Kandelia Alam 18,130 2012 West Kalimantan
22 PT Bina Ovivipari Semesta 10,100 2012 West Kalimantan
23 PT Sumalindo Lestari Jaya IV 63,550 2012 East Kalimantan
24 PT Sumalindo Lestari Jaya V 61,465 2012 East Kalimantan
25 PT Bina Balantak Utama 298,710 2012 Papua
26 PT Telaga Bhakti Persada 63,405 2012 Maluku
27 PT Mitra Pembangunan Global 83,950 2012 West Papua
28 PT Cloudy Bay 148,900 2013 Papua New Guinea
29 PT Carus Indonesia 72,170 2013 Central Kalimantan
30 PT Wana Bakti P.U. 44,402 2013 East Kalimantan
31 PT Aditya Kirana M 42,700 2013 East Kalimantan
32 PT Inhutani II Sei Tubu 99,100 2013 East Kalimantan
33 PT Inhutani II Semamu 71,375 2013 East Kalimantan
34 PT Inhutani II Malinau 29,040 2013 East Kalimantan
35 PT Multi Wahana Wijaya 107,740 2013 West Papua
36 PT ASCO Prima Nusantara 171,270 2013 West Papua
37 PT Utama Damai Indah Timber 49,250 2013 East Kalimantan
38 PT Karya Lestari 49,123 2013 East Kalimantan
39 PT BUMWI 82,120 2013 West Papua
40 PT Wijaya Sentosa 130,755 2013 West Papua
Total 4,172,675
List of forest concessions supported by The Borneo Initiative in 2014
The Dutch wood market is not expecting any major
recovery yet this year, but signals are more positive
in the other European markets (the UK) and the USA.
Our Market Links Coordinator for the USA started in
March 2014. He has promoted Indonesian certifi ed
timber among 30 large American buyers of plywood,
fl ooring, decking, veneer and garden wood. We
collect the profi les of all the forest concessions and
industries it supports. In association with partner
organisations in these markets, these profi les are
distributed to leading trading companies in the
major FSC markets, EU and USA, but potentially also
Japan, China and Australia. We facilitate information
exchange and business dialogues, and monitors the
impact of forest certifi cation on trade.
In November APHI and TBI hosted a second trade
seminar, this time in Surabaya, the Indonesian centre
of wood processing industries. The seminar was
attended by the CEO and president of the USA-
based International Wood Products Association
(IWPA), a representative of the UK Timber Trade
Federation, USA companies, European companies
and Indonesian FSC CoC certifi ed industries. The
event was successful due to concrete contracts for
the USA market in truck fl ooring, decking, moul-
dings and plywood. IWPA agreed to assist us in the
promotion of Indonesian certifi ed wood products in
2015. We agreed with all participants to host a
repeat event in 2015.
Programme ImpactEconomic
Of the 40 concessions that we support, 39 are
actively logging with a total output of 1.8 million
cu.m roundwood, harvested from a total production
area of 2.6 million ha. A proportion of 88 per cent
of these logs is supplied to plywood industry, and
the remainder 12 per cent is supplied to saw mills.
We estimate that the log harvests from the FSC
concessions alone allow for the production of
422,000 cu.m of plywood, and 61,000 cu.m of sawn
wood products.
Social
The forest concessions altogether employ 7,400
regular staff in their concessions, not counting
numerous seasonal workers.
Ecological
The whole area that has been FSC certifi ed thus far
with our support (1.4 million ha) is natural forest.
Around 300,000 ha (16 per cent) has been set-aside
for full protection. Moreover, 17 forest concessions
(1.36 million ha) share borders with a protected area
and thus have a buffering function. And 16 forest
concessions offer habitat for such iconic endangered
species like orang-utans, proboscis monkeys,
elephants and Sumatran rhinos.
Market links • Expected result: FSC certifi ed forest concessions
with our support have new market links to the
Netherlands (75,000 cu.m/year) or wider EU
(120,000 cu.m/year) and USA (120,000 cu.m/year).
Of the 40 concessions that we support, 39 are
actively logging with a total output of 1.8 million
cu.m roundwood.
• Target 2014: 19 (nearly) FSC certifi ed forest
concessions supply FSC wood products to the
Dutch (40,000 cu.m) or other European markets
(20,000 cu.m).
• Status: 16,000 cu.m (i.e 58 per cent of a total of
28,000 cu.m) FSC products traded between
Indonesia and the Netherlands.
Adessium Foundation e 950,000 0 e 950,000 2008 - 2011
Adessium Foundation e 950,000 0 e 950,000 2012 - 2015
IDH e 2,000,000 e 1,800,000 e 200,000 2009 - 2013
IDH e 1,500,000 e 1,350,000 e 150,000 2012 - 2015
Postcode Lottery e 2,300,000 e 2,070,000 e 230,000 2010 - 2015
BAM e 250,000 e 225,000 e 25,000 2009 - 2013
Bouwfonds e 250,000 e 225,000 e 25,000 2009 - 2013
Skantrae e 40,000 e 36,000 e 4,000 2012 - 2013
Aldrik Lifttechniek e 1,500 e 1,350 e 150 2011
Foreign and
Commonwealth Office e 19,219 e 0 e 19,219
25 housing corporations e 275,000 e 247,500 e 27,500 2010 - 2016
TOTAL (core + programme) e 8,535,719 e 5,954,850 e 2,580,869
Financial report
Expenditures 2014
Certification e 589,000
Certification support activities e 135,000
Market links e 230,000
Organisation and management e 208,000
Financial costs e - 2,000
Total e 1,160,000
Programme donors: Total donation Forest Organization Period
(90% forest certification & certification and support
10% organisation & support)
Core donors: Total donation Forest Organization Period
(100% organization & support) certification and support
Donations received
visit the website www.theborneoinitiative.org June 2015
Organisation and ColofonWe run our activities from three offices.
The head office is based in the Netherlands, the others in Indonesia and the USA.
The Borneo Initiative
De Corridor 7, 3621 ZA Breukelen, the Netherlands
Email: info@theborneoinitiative.org
Mobile phone: +31 610 665564
Pictures: Maurice Spees and TBI
Editing: ImpactReporters, Han van de Wiel
Design: Studio 10, Tineke Kooistra
Printer: drukkerij Mart. Spruijt BV, Amsterdam
This annual report is printed on 250gr FSC paper.