Tue, 14 Oct 1997

Farmer's plantations untouched

In reference to the article in your paper (Timber estates threaten forests by Stephanus Djuweng, Oct. 10), PT Finnantara Intiga wishes to clarify its plans in West Kalimantan. Many facts mentioned in the article hold true with most of the past pulp plantation projects in the country. However, since PT Finnantara Intiga was especially mentioned as an example in the article, I would like to elaborate on some principles concerning the activities of our company.

To feed a planned pulp mill, 100,000 hectares out of an allocated 300,000 hectares has to be planted. The allocated area is usually mainly covered by unproductive alang-alang (Imperata cylindrica)) and brush. Soil is mechanically prepared for planting, without slash and burn practices. Natural forests or farmers' plantations are left untouched to conserve biological diversity and to ensure the possibility for farmers to continue their traditional way of life. No logging of natural forests takes place when preparing the plantation area.

The company is maximizing its efforts to operate in a sustainable way, which is necessary also for obtaining an international ecolabelling certificate.

PT Finnantara Intiga only uses community land for its plantations. Agreements are made with village communities which are signed by all villagers concerned. Thus, no plantations can be established without the approval from a community. Based on these mutual agreements, villagers receive compensation and other benefits listed as follows:

* Before planting, villages are compensated with Rp 20,000 per hectare.

* Rubber plantations are established on five percent (5,000 hectares) of the planting area.

* An additional 10 percent (10,000 hectares) of the area is planted with local species. Locations and species are selected by the villagers.

* Agro-forestry and wetland rice (sawah) are established in cooperation with the villagers.

* After logging, villagers receive a royalty (stumpage price), from 10 percent of the planted area.

* Technical assistance is provided to establish community reliance groups (Kelompok Usaha Bersama), with loans and savings functions.

PT Finnantara Intiga emphasizes cooperation with all relevant villages, governmental and non-governmental organizations as well as local and international research organizations. The social and environmental sustainability of our projects are essential for our success. For further information about the company's activities, please feel free to contact us (Fax: 021-5272088).

VELI HIETALAHTI

President Director

PT Finnantara Intiga

Jakarta