Sharing Ideas From Forest to Business & Investment Opportunities - PowerPoint PPT Presentation

Sharing Ideas From Forest to Business & Investment Opportunities (Developing Non-Wood Forest Products) By: M. Yusuf Noorhajiyanto Perhutani Business Development 1 1

Perhutani Group 1 Perhutani Group 2 To be a leading forest management company and provide benefit for the society

Products & Services Others Ecotourism Honey, Copal, 237 Tourist Destinations Agrobusiness products 2% 3% 0,1% Wood Cajuput Oil Teak ≈ 306.217 m 3 ≈ 241 Ton Non Teak ≈ 764,815 m 3 44% 45% Wood Industry Gum Rosin 6% Gum Rosin ≈ 63.755 Ton Processed wood : 47.520 m 3 Turpentine ≈ 13.609 Ton Revenue Contribution 2017 1 3

Wood Potential Area Standing Stock Teak No Type of wood (Ha) (m3) 1 Teak 573,319 22,854,899 2 Pine 227,518 32,228,182 3 Mahagony 73,095 6,978,347 4 Agathis 9,103 1,729,649 Pine 5 Albizia 23,302 928,817 6 Sono Sp 6,816 684,741 7 Gmelina 7,946 426,03 8 Shorea 63,753 7,736,392 9 Mixed Wood 10,417 296,233 Mahogany 10 Fancy Wood 3,480 98,659 11 Acacia Mangium 16,735 495,000 12 Eucalyptus 2,980 65,121 Note Acacia Mixed wood : Wood from the forest which consisting of various types of plants such as Maesopsis sp , Schima wallichii, Alstonia sp etc. 1 Perhutani Group 4

Gum Rosin and Derivatives PERHUTANI GUM ROSIN, Indonesian Gum Rosin (IGR) crude gum (oleoresin) is tapped from Pinus merkusii trees Products:  gum rosin,  turpentine oil,  alpha pinene, dipentene, d-limonene  glycerol rosin ester  (other gum rosin and turpentine derivatives)

GUM ROSIN AND TURPENTINE PRODUCTION Production Series Gum rosin Sales 90.000 100.000 80.000 90.000 70.000 80.000 70.000 60.000 60.000 50.000 ton ton 50.000 40.000 40.000 30.000 30.000 20.000 20.000 10.000 10.000 - 2010 2011 2012 2013 2014 2015 2016 2017 - 2010 2011 2012 2013 2014 2015 2016 2017 Domestic 10.69 7.544 8.434 7.740 6.628 4.619 4.343 3.742 GUM ROSIN 62.73 82.52 81.17 67.35 60.28 71.51 56.31 62.60 Export 54.27 44.65 79.79 77.16 59.61 61.97 64.52 45.63 TURPENTINE 11.90 17.57 17.54 13.59 12.64 15.50 11.17 13.21 Total 64.97 52.20 88.23 84.90 66.24 66.59 68.86 49.37 • Gum Rosin PRODUCT AND APPLICATIONS As material for many industries, such as : paints, adhesives, soap, printing inks, paper seizing, furnishes, etc • Turpentine Used as a solvent and as a source of materials for organic synthesis • Glicerol Rosin Ester As a tackifier in adhesive, ink and paint application • Alpha Pinene is largely used as starting material for the synthesis of terpineol, camphor, borneol and terpene resin, synthetic perfumes and resins, medicines, cleaning agents, disinfectant and other synthetic organic chemicals.

Development of Biomass Plantations • Perhutani Group has planned to support Indonesia and world’s growing biomass wood pellet demand. • Perhutani plans to allocate biomass plantation area of around 118.000 ha • A pilot project of 2.000 ha, started with a Korean institution (KOFPI), has shown promising result. Biomass, wood chip, wood pellet • Tree Species: • Calliandra sp. • Gliricideae sp. Current Productivity ± 30 ton/ha/year, Harvesting is started every 3 rd year with coppice system Joint Cooperation Scheme • Biomass Plantation • Biomass Industry (wood chip, wood pellet) • Biomass Power Plant 1 7

Sago Factory Located in the territory of Kais District, South Sorong Regency, West Papua Province. The area of ​natural sago utilization in accordance with the Non-Timber Forest Concession (IUPHHK) from Perhutani Ministry of Environment and Forestry has a total area Sago Factory of ​ ± 15,000 Ha, with productivity ± 30.000 ton/Ha/year • Join Operation • Investment Cooperation Scheme • Joint Operation • Joint Investment Future challenges : • Market • Processing Machines 1 8

(Pure) Cajuput Oil Melaleuca leucadendron Leaves (as raw material, in tonnes) 80.000 69.696 70.000 60.694 60.000 48.075 41.375 50.000 41.592 41.063 40.255 37.309 37.335 36.625 40.000 31.432 33.689 31.937 30.000 26.287 20.000 10.000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Cajuput oil is produced by steam distillation of Cajeput Oil Production fresh leaves and twigs of the cajuput tree (tonnes) ( Melaleuca leucadendra ) 600 529 Cajuput oil is used to treat colds, headaches, 500 441 toothache loosen phlegm so it can be coughed 400 338 up (as an expectorant). 266 300 250 276 290 291 300 244 226 241 204 187 Some people apply cajuput oil to the skin for 200 mites (scabies) and a fungal infection of the skin. 100 Cajuput oil is also used either alone or in 0 combination with other ingredients in 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 commercially available antiseptic lotions. 9

COFFEE FROM THE FOREST Perhutani has observed many suitable Coffee arabica , commonly called location for coffee plantations. Arabian coffee , is an upright tropical evergreen shrub or small tree that grows Both local community participation and to 10-15' tall. Arabica trees are well- availability of forest layers to control sun infiltration have determine the coffee in grown under the forest trees. From this the forest. This is one of agroforestry forest area produces approx. 150.000 practices in Perhutani. ton/year, spread out in many different locations. Most are sold as beans without further processing. Future challenges : • Market • Sorting and Grading Skills • Processing Machine • Packaging 10

Potential Ecotourism For Further • Joint Operation Development • Joint Investment Beaches (112 locations) Mountains (76 locations) Gunung Galunggung (West Java) Menganti Beach (Middle Java) Tiga Warna Beach (East Java) Kawah Putih (West Java) Pulo Merah Beach (East Java) Papuma Beach (East Java) Sikidang Crater (Middle Java) Mount Prau (West Java) Waterfalls (207 locations) Adventures (50 locations) River Tubing Curug Cilember (West Java) Rainbow Waterfall (West Java) Fun Offroad (West Java) Caving Coban Rondo (East Java) Mt Slamet Waterfall (Middle Java) Locomotive tour (West Java) 1 Perhutani Group 11

Forest is not merely timber estate Thank You 12