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Farmer's plantations untouched

| Source: JP

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

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