Long-Term Business Benefits Inspire Forest Concessionaires to Go Green
Fidelis E Satriastanti | January 14, 2010
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Six timber concessionaires in Indonesia's Kalimantan are making a push for green
certification, a move they say will not only help preserve the nation’s
forests but also ensure their companies survive as viable long-term
organizations.
“We don’t want to be a short-lived company
looking for a quick profit,” Bambang Poerwanto, production director of
PT Roda MasTimber Kalimantan, said recently. “The main benefit for
getting certified as green is the long-term survival of our companies.”
Bambang said that managing the production process in a
sustainable fashion would help preserves the forests and gives
employees job security. “The certification also gives our product added
value and increases our ability to attract buyers,” he said.
The
concessionaires have signed a memorandum of understanding with The
Borneo Initiative (TBI), a Dutch-based nongovernmental organization
involved in sustainable forest management that will give the companies
financial support in their quest to be certified by the Indonesian
Ecolabeling Foundation.
“TBI will be assisting us in the
preaudit phase, consultation and the final audit. We can do the
certification process ourselves but it’s difficult and very
time-consuming,” Bambang said.
The Borneo Initiative’s aim is
to encourage green certifications for forests in Indonesia, starting in
Kalimantan. Jesse Kuijper, a member of the group’s board, said it was
crucial for Indonesia to focus on sustainable forest management at this
point in time.
“There is a growing trend for larger European
and American companies … to feel more secure when [timber products]
have been acquired in a legal way, and preferably in a sustainable
way,” he said.
Kuijper said that from a cost-benefit
perspective, it was more expensive in the long run if things were not
done in a sustainable manner.
“[Sustainability] is very, very
profitable in the long term, even though there are some short-term
costs. For instance, you would need to be logging a little bit less
than you have done in the past,” he said, adding that as an extra
incentive, certified companies could get higher prices for their
products.
Rizal Bukhari, director of TBI’s Indonesian office,
said on Tuesday that his organization would provide funding to the
concessionaires to help them obtain certification.
“Based on
our research, concessionaires are very interested [in getting
certified] if they get professional support and financial aid,” Rizal
said. “The financial support will be given so the companies can pay
third parties, such as forest experts and consultants.”
TBI
will subsidize the certification process with a maximum 180,000 euros
($262,000) for each of the concessionaires’ 135,000 hectares, with the
remainder to be financed by the concessionaires themselves.
Kuijper
said TBI’s objective was to overcome any obstacles that blocked the
companies from getting certified, including financial issues, knowledge
of the process, the various institutions that need to be dealt with and
information about those in the market for sustainable products.
“When
we first came here, there was no overall approach [to cover all those
issues]. Everybody did a part of the process but nothing was really
connected,” Kuijper said.
Bambang said his company had been
planning to get certified since 2001 but was forced to delay the
process because of economic issues, including wildly fluctuating wood
prices.
The other concessionaires seeking certification are
Sarang Sapta Putera, Belayan River Timber, Indexim Utama Corporation,
Suka Jaya Makmur and Sarmiento Parakanca Timber.
Bambang said
his company already had certification for another concession and had
received approval from the government for its annual work plan
validation (known as RKT). Once certified, he said, it will no longer
be necessary to get the plan approved by local governments.
“Of
course, that comes with consequences — if we are proven to have
violated the plan, then we will face heavy penalties,” he said.
Art
Klassen, regional director for Southeast Asia Pacific at the Tropical
Forest Foundation, said the best guarantee for forest conservation in
the country was to put it in the hands of responsible companies that
would implement sustainable forest management practices according to
credible standards.
“I’ve been coming to Indonesia for more
than 14 years now, working with some of the companies here, and the
forests they still run today are the same as they were 14 years ago
because they are responsible and care for the forests,” he said.
About
one million hectares of forest have already been certified in
Indonesia, of which 600,000 hectares are located in Kalimantan. The
government’s projection for 2013 is to have 3.3 million hectares
certified as sustainable and five million by 2015.
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