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1 INTERNATIONAL PLATFORM FOR LEI-FSC CERTIFICATION INITIATIVES IN INDONESIA 2011 ANNUAL REPORT The Borneo Initiative Foundation Public version opmaak :59
2 opmaak :59
3 INTERNATIONAL PLATFORM FOR LEI-FSC CERTIFICATION INITIATIVES IN INDONESIA The Borneo Initiative With this publication of the public version of the 2011 annual report, The Borneo Initiative aims to inform a broader public about its work. The public version is fully based on the annual report, which has been externally audited and approved by KPMG. The Borneo Initiative is a foundation established in 2008, with offices in The Netherlands and Indonesia. Its mission is to prevent the loss of tropical forests due to deforestation and over-exploitation. Our target is to contribute directly to the increase of certified natural forest areas in Indonesia from 1 million hectares in 2008 to 4 million hectares by the end of 2013 and 5 million hectares by the end of The Borneo Initiative operates as a platform to forge partnerships between various organisations on the ground such as APHI, TFF, TFT, TNC and GFTN as well as with standard-setting bodies (such as FSC and LEI), government, forest concessions and overseas wood trading companies. The Borneo Initiative offers forest management units (i.e. forest concessions) a subsidy of 2 USD/ha. The concessionaire can use this grant to pay specific certification costs. Our primary focus is the Indonesian part of Borneo i.e. Kalimantan, but coverage may expand over time to include Malaysia and Papua New Guinea (PNG) as well. The Borneo Initiative links up players at either end of the marketing chain whose cooperation is required to make certification a success: wood suppliers in Indonesia and end users in Europe. Monitoring and evaluation The Borneo Initiative commissioned an external evaluation in March This evaluation revealed that TBI s work has gained broad acceptance and is valued by the Indonesian government and the forest concessionaires, as well as by the advisors and partner NGOs. We have therefore been advised to maintain the current approach. Looking back and ahead FSC certification in Indonesia is gaining ground. By the end of 2013 we will meet our first target: an extra 3 million ha of forests under FSC-certified management in Indonesia. Forest concessionaires expect sustained support. In view of this we have set ourselves a second goal of certifying another 5 million ha in , thereby increasing our total contribution to 8 million ha. All forests we support are natural forests. We prioritise those forest concessions that are important building blocks in the Heart of Borneo ecological network. Achievements in brief million ha of natural forest on the way to sustainable management in Indonesia million ha production area with 1.200,000 m 3 roundwood output - 175,000 ha set-aside for full protection - 478,000 ha range area for great apes (orang-utans, gibbons) - three forest concessions with FSC-certification opmaak :59
4 FSC in Indonesia: now and later Concession FSC FSC FSC roundwood area (ha) certificates area (ha) output (m3) ,352, ,106, , , ,100, , , ,500, ,805, , ,000, , , ,000, ,500,000 1,250, ,000,000 1,000,000 Total 8,000, ,000,000 4,000,000 Forest Certification Baseline 2010: Nine forest companies with 1,100,000 ha Target 2011: Four FSC-certified forest concessions Status: Three forest concessions achieved FSC certification in 2011, six expect to achieve FSC certification in 2012 opmaak :59
5 INTERNATIONAL PLATFORM FOR LEI-FSC CERTIFICATION INITIATIVES IN INDONESIA List of forest concessions supported by The Borneo Initiative in 2011 Company name Province Area (ha) Entry FSC year certificate 1 PT Suka Jaya Makmur West Kalimantan 171, PT Belayan River Timber East Kalimantan 97, PT Roda Mas Timber East Kalimantan 69, PT Sarang Sapta Putera Central Kalimantan 51, PT Sarmiento Parakanca Central Kalimantan 216, Timber 5 Group 1 606,220 6 PT Indexim Utama East Kalimantan 52, PT Narkata Rimba East Kalimantan 41, PT Kemakmuran East Kalimantan 82, Berkah Timber 9 PT Dwimajaya Utama Central Kalimantan 127, PT Ratah Timber East Kalimantan 97, PT Gema Hutani Lestari Maluku 148, PT Wapoga Mutiara Papua 196, Timber II 7 Group 2 746, PT Rizki Kacida Reana East Kalimantan 55, PT Salaki Summa West Sumatra 48, Sejahtera 15 PT Mamberamo Papua 677, Alas Mandiri 16 PT Wukirasari West Papua 116, Group 3 897,200 Total 2,250,116 visit the website Juni 2012 opmaak :59
6 INTERNATIONAL PLATFORM FOR LEI-FSC CERTIFICATION INITIATIVES IN INDONESIA Market links Target year 2011: newly FSC-certified forest concessions will sell timber to partners of The Borneo Initiative in the Netherlands, EU and USA Status: a baseline measurement is planned early in 2012 Matching supply and demand FSC certification of forest concessions and wood is one aspect of the supply chain. The other is stimulating demand in a way that both are properly matched. Together with FSC NL we are streamlining core production data from our Indonesian partners to make these available to the Dutch timber sector. But our ambitions extend further, reaching out to markets in Europe and the US. In mid-june 2012 we will be hosting the Jakarta II trade seminar, where we expect major buyers from Europe and the USA to come and meet the forest concessions we support with FSC certification and their industries. Growing demand for FSC The Dutch economic slowdown has serious repercussions for the housing and construction sector, the principal wood user in the Dutch economy. Even so, effective demand for FSC wood products remains strong as markets are committed to sustainability, and we are being approached by an increasing number of companies. The main target groups for FSC-certified wood are the retail sector and the construction sector. The Borneo Initiative, together with FSC and IDH, is forging closer links with these sectors in the Netherlands and throughout the rest of Europe to ensure that supply and demand match. Next we plan to target the USA. Organisation The Borneo Initiative runs its activities from two offices, one in the Netherlands and the other in Indonesia. The Netherlands: The Borneo Initiative De Corridor ZA Breukelen, the Netherlands info@theborneoinitiative.org Mobile phone: Indonesia: The Borneo Initiative Gedung Graha Simatupang Tower 2 Unit C Lt Jl. LetJen. TB. Simatupang Jakarta Selatan 12540, Indonesia bukhari@theborneoinitiative.org Office phone: Mobile phone: Fax: visit the website Juni 2012 opmaak :59
7 Financial report Income Total donation Period Adessium Foundation 950, IDH / Ministry of Foreign Affairs NL 2,000, Postcode Lottery 2,300, BAM 250, Bouwfonds 250, housing corporations 275, Total 6,025,000 Expenditure Certification 578,100 Support activities 17,300 Market links 0,0 Organisation and communication 319,400 Total 914,800 IDH has agreed a new contract worth 2 million for the period In addition we have received a private donation from Aldrik Lift Techniek for the sum of 1,500. In 2012 we will welcome Handelsmaatschappij Steffex B.V. as a new private sector donor.the company will pledge a total amount of $ 50,646 over the period Abbreviations APHI Asosiasi Pengusaha Hutan Indonesia (Indonesian Association for Forest Concession Holders) EU European Union FSC Forest Stewardship Council GFTN Global Forest & Trade Network IDH Sustainable Trade Initiative LEI Lembaga Ekolabel Indonesia (Indonesian Ecolabeling Institute) SFD Sabah Forestry Department TBI The Borneo Initiative TFF Tropical Forest Foundation TFT The Forest Trust TNC The Nature Conservancy opmaak :59
8 visit the website Juni 2012 opmaak :59
2014 ANNUAL REPORT. The Borneo Initiative Foundation. Public version
2014 ANNUAL REPORT The Borneo Initiative Foundation Public version Abbreviations APHI Asosiasi Pengusaha Hutan Indonesia (Indonesian Forest Concession Holders Association) CoC Chain of Custody CW Controlled
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