Tree planting has been consistently pursued to develop timber business, preserve the tropical forest cover and protect global environment. Korindo Group has been harvesting logs for raw materials from designated production forests by using a selective logging and replanting system to minimize the adverse effects towards the environments and to ensure the sustainability of the production forest resources. We have also planted fast-growing tree species since 1994 to ensure a continous supply from a sustainably managed topical forest plantation (planned area covers 110,000 ha). All our activities in timber plantations are based on the philosophy of placing a great emphasis on enviromental proctection, human resources development and responsibility in and around forest areas. Objective To maintain the continuity of existing wood-based processing industries operations and to make further development into higher added-value products. To strengthen competitiveness through low-priced and high quality logs raw materials. To provide breakthrough technology and incentives for the development of new reconstituted panels and engineered-wood products which can make use of a wider and more diverse range of raw materials.

Species : Acacia mangium, Eucalyptus pellita, Eucalyptus urograndis, Gmelina arborea, Hibiscus similes, etc Performance : Completed timber plantation by the end of 2001 will reach 11,000 ha. Planting will reach 6,000 ha anually, starting from 2001. Current status Location : East Kalimantan Province and Central Kalimantan Province, Indonesia Total land area : 110,000 ha Net areas planned : 65,000 ha Annual planting schedule : 6,000 ha - 7,000 ha Species mix - Main species : Gmelina arborea, Acacia mangium, Eucalyptus pellita. - Secondary species : Eucalyptus urograndis, Hibiscus similis, Tectona grandis Planting methods - Intensive plantation management with self-developed stand management model based on accurate geographical information. - Clonal forestry through short and long-term tree breeding strategies and bio-technology know-how area being planned in the near future.

Acacia mangium : Current mean annual increment (MAI) can reach 27.1 m3/ha, which will ensure continuity in existing plywood industries and the planned pulp mill plant. Eucalyptus urograndis : A species for which clonal forestry is planned, and currentlyon trial in Central Kalimantan. Its has high productivity, excellent for plywood production and other additional benefits. Can produce higher than 45 m3/ha annually using clonal material (multiplication by vegetative propagation). Hibiscus similis : Have good potential for high growth. Field trials are presently underway, and it will possibly become major plantations species in the near future.

To reduced pressure on the utilization of natural product forrest. - Annual productivity of natural forest is about 0.5 - 1 m3/ha (annual mean increment). - Fast growing species annual productivity ranges from 20 - 40 m3/ha per year. - Annual forest depletion due to logging is estimated at 100,000 to 200,000 ha. To help ease and reduce the pace of earth-warming due to the trees ability to sequester carbon dioxide from the atmosphere. - Around 50% of timber absolute density consists of carbon. - The environmental value of one ton of carbon cost about U$10 /ton per year. Help control soil erosion. To foster healthy environment and contribute to the conservation of the tropical forestry heritage. To increase welfare of the local community by creating new jobs and employment opportunities in education, training, and village development programmes.