visit the website www.theborneoinitiative.org June 2013
AbbreviationsAPHI 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
MoF (Indonesian) Ministry of Forestry
PT Perseroan Terbatas
(Limited Liability Company)
SVLK Sistem Verifikasi Legalitas Kayu
(Timber Legality Verification System)
TBI The Borneo Initiative
TFF Tropical Forest Foundation
TFT The Forest Trust
TNC The Nature Conservancy
USA United States of America
The Borneo InitiativeWith the publication of this public version of the
2012 annual report, The Borneo Initiative (TBI) aims
to inform a broader public about its work. This
public version is based wholly on the annual report,
which has been externally audited and approved by
KPMG.
TBI is a foundation established in 2008, with offices
in The Netherlands and Indonesia. Our mission is to
prevent the loss of tropical forests to deforestation
and over-exploitation.
Our target is to contribute directly to the increase
of certified natural forest areas in Indonesia, from
1.1 million hectares in 2009 via 4 million by the end
of 2013, 5 million by the end of 2014 and 9 million
in 2016.
We operate as a platform to forge partnerships
between various organisations on the ground such
as TFF, TFT, TNC and GFTN as well as with standard-
setting bodies (such as MoF and FSC), government,
forest concessions and overseas timber trading
companies. We have prepared a formal partnership
with APHI to be finalised in 2013.
We offer forest enterprises (i.e. forest concessions)
a subsidy of 2 USD/ha, with a maximum available
subsidy at USD 300,000. At the same time, we offer
a higher subsidy of 3 USD/ha to smaller forest
concessions between 35,000 and 75,000 ha, with a
ceiling of USD 150,000. The concessionaire can use
this grant to pay specific certification costs.
Our primary focus is the Indonesian part of Borneo
(Kalimantan), but coverage is to expand over time
to include Malaysia and Papua New Guinea as well.
We link 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 or USA.
Looking back and aheadWe have come close to the target of adding 17
forest concessions with 1.2 million ha to the portfo-
lio in 2012 – actually we have added 15 companies
with 1,093,000 ha, bringing the total portfolio size
to 3,334,000 ha. In 2013, the portfolio is to grow to
a total of 45 companies with 5 million ha – we have
already prepared a sixth group of seven companies
with 508,000 ha, bringing us close to the 4 million
ha target early in 2013.
We added four new FSC certificates in 2012,
bringing the total of FSC certificates achieved with
TBI support to 7, covering 806,400 ha of forest. This
is good progress in itself, but we had planned to
add 14 new FSC certificates by the end of 2012, so
overall progress is somewhat behind schedule. We
are keeping close coordination with the certification
coaches to speed up the momentum in all forest
concessions.
Achievements in brief
- 3.3 million ha of natural forest on the way to sustainable management in Indonesia
- 2.8 ha production area with 1.5 million cu.m. roundwood output
- 260,000 ha set-aside for full protection
- 770,000 ha range area for iconic and endangered species
- 4 new forest concessions with FSC-certification in 2012, 7 overall since 2010.
In the current period 2012-2014, we plan to bring
another 5 million ha of natural forest under FSC
certified management (adding 8 million ha in total).
Now that forest certification is gaining traction,
sustained support is needed to put FSC into the
mainstream, to make a significant and durable
contribution to safeguarding Borneo’s remaining
forests. Beyond 2016, we aim for a future total of
15 million ha FSC certified forests, mostly but not
exclusively on Borneo. This implies a fund-raising
target of e 8.5 million both for forest certification
proper, and for maintaining the organization.
Forest CertificationWe have revised our TBI model in a way that dual
certification (SVLK-FSC) can be facilitated and that
action plans reflect all the steps needed for earning
both SVLK and FSC certification.
As regards Sabah and Brunei, we facilitated a FSC
readiness study early in 2012. It showed that the
potential is somewhat limited for FSC. So, the most
potential for FSC is still in Indonesia. We have
prepared a long list of forest concessions with FSC
potential for Kalimantan and Papua province, in
light of upcoming new donor contracts.
FSC roundwood
Year TBI support area (ha) FSC certificates FSC certified area (ha) output (cu.m.)
FSC in Indonesia: progress by year
Baseline 2010: 9 FSC-certified forest companies
with 1,100,000 ha
Target 2012: 6 additional FSC-certified forest
concessions
Status: 4 forest concessions achieved FSC
certification in 2012; 7 concessions since 2010
change sum change sum change sum change sum
-
1,353,000
897,000
1,093,000
1,600,000
2,000,000
1,057,000
1,000,000
1,353,000
2,250,000
3,343,000
4,943,000
6,943,000
8,000,000
8,000,000
9,000,000
9
0
3
4
12
15
15
15
16
0
3
7
19
34
49
64
80
90
1,117,134
0
429,000
377,000
1,600,000
1,500,000
1,500,000
2,594,000
1,000,000
0
429,000
806,000
2,406,000
3,906,000
5,406,000
8,000,000
9,000,000
10,000,000
600,000
0
376,000
198,000
750,000
750,000
876,000
750,000
500,000
0
376,000
574,000
1,324,000
2,074,000
2,950,000
3,700,000
4,200,000
4,800,000
* rounded figures
2009
2010
2011
2012
2013
2014
2015
2016
Non-TBI
Overall sum*
Entry FSC
Company name Province Area (ha) year certificate
1 PT Suka Jaya Makmur West Kalimantan 171,340 2010 2011
2 PT Belayan River Timber East Kalimantan 97,500 2010 2012
3 PT Roda Mas Timber East Kalimantan 69,330 2010 2012
4 PT Sarang Sapta Putera Central Kalimantan 51,500 2010
5 PT Sarmiento Parakanca Timber Central Kalimantan 216,580 2010 2011
6 PT Indexim Utama East Kalimantan 52,480 2010
7 PT Narkata Rimba East Kalimantan 41,540 2010 2011
8 PT Kemakmuran Berkah Timber East Kalimantan 82,810 2010 2012
9 PT Dwimajaya Utama Central Kalimantan 127,300 2010 2012
10 PT Ratah Timber East Kalimantan 97,690 2010
11 PT Gema Hutani Lestari Maluku 148,450 2010
12 PT Wapoga Mutiara Timber Unit II Papua 169,170 2010
13 PT Rizki Kacida Reana East Kalimantan 55,150 2011
14 PT Salaki Summa Sejahtera West Sumatera 48,420 2011
15 PT Wukirasari West Papua 116,320 2011
16 PT Mamberamo Alas Mandiri Papua 677,310 2011
17 PT Sari Bumi Kusuma Delang West Kalimantan 60,700 2012
18 PT Gunung Gajah Abadi East Kalimantan 81,000 2012
19 PT Kandelia Alam West Kalimantan 18,130 2012
20 PT Bina Ovivipari Semestra West Kalimantan 10,100 2012
21 PT Inhutani I Meraang East Kalimantan 70,700 2012
22 PT Adhi Mitra Lestari East Kalimantan 52,100 2012
23 PT Wanasokan Hasilindo West Kalimantan 49,000 2012
24 PT Graha Sentosa Permai Central Kalimantan 44,970 2012
25 PT Sumalindo Lestari Jaya IV East Kalimantan 63,550 2012
26 PT Sumalindo Lestari Jaya V East Kalimantan 61,465 2012
27 PT Bina Balantak Utama Papua 298,710 2012
28 PT Manokwari Mandiri Lestari West Papua 83,240 2012
29 PT Mitra Pembangunan Global West Papua 83,950 2012
30 PT Telega Bhakti Persada Maluku 63,405 2012
31 Perum Perhutani/KPH Banten West Java 80,163 2012
Total 3,344,073
List of forest concessions supported by The Borneo Initiative in 2012
With the Papua buyer visit in March 2012, followed
by the year’s highlight, the FSC Business Encounter
in June 2012, we built the network for further
market links activities. We are in the process of
collecting updated production profiles of all the
TBI-supported forest concessions and industries,
which we will make accessible to leading trading
companies in the major FSC markets, EU and USA,
but potentially also Japan, China and Australia.
We have contacted leading partner organisations in
the Netherlands, United Kingdom, Denmark, USA,
and Asia-Pasific who are ready to coordinate actions
with us in 2013. Adessium Foundation generously
expanded our funding base to allow awareness
raising activities in the USA.
Programme ImpactEconomic
The 31 forest concessions combined produced a
total log output of about 1.5 million cu.m from a
harvest area of around 2.8 million ha, i.e. an average
of only 0.5 cu.m./ha – or even lower if the non-
productive areas are also taken into the equation.
Around 570,000 cu.m. of the 1.5 million cu.m.
harvested is already FSC certified. The related
industries convert this harvest into an estimated
103,000 cu.m. sawn wood products and about
241,000 cu.m of wood panel products (plywood).
Social
The forest concessions we support employ some
6,900 regular staff in total, not counting numerous
seasonal workers.
Ecological
The whole area that has been FSC certified thus far
with the support from TBI (806,400 ha) is natural
forest. 260,000 ha has been set-aside for full
protection. Moreover, 13 forest concessions share
borders with a protected area and thus have a
buffering function. And 10 forest concessions offer
habitat for such iconic endangered species like
orang-utans, proboscis monkeys and elephants.
Market links
• Expected result: FSC certified
forest concessions with
support of TBI have new
market links to the Netherlands
(75,000 cu.m/year) or wider EU
(120,000 cu.m/year).
• Target 2012: 9 FSC certified
forest concessions supply FSC
wood products to the Dutch
(20,000 cu.m) or the European
markets (10,000 cu.m).
• Status: Shipments to the
Netherlands and other Euro-
pean countries are on-going.
A survey among FSC certified
concessions is under
preparation.
FundraisingWe aim for a future total of 15 million ha FSC
certified forests, mostly but not exclusively on
Borneo. This implies a fund-raising target of e 8.5
million both for forest certification proper, and for
maintaining the organization.
Adessium Foundation agreed to a second contract
for the period 2012-2015, to the amount of
e 950,000 for organisation and management,
including the development of a ‘Linking USA’
strategy.
We have prepared funding proposals for other
bilateral donors, to be finalised in 2013.
Adessium Foundation e 950,000 0 e 950,000 2008 - 2011
Adessium Foundation e 950,000 0 e 950,000 2012 - 2015
IDH e 2,000,000 e 1,800,000 e 200,000 2009 - 2013
IDH e 2,000,000 e 1,500,000 e 500,000 2012 - 2015
Postcode Lottery e 2,300,000 e 2,070,000 e 230,000 2010 - 2015
BAM e 250,000 e 225,000 e 25,000 2009 - 2013
Bouwfonds e 250,000 e 225,000 e 25,000 2009 - 2013
Steffex e 40,000 e 36,000 e 4,000 2012 - 2013
25 housing corporations e 275,000 e 247,500 e 27,500 2010 - 2016
TOTAL (core + programme) e 9,015,000 e 6,103,500 e 2,911,500
Expenditures 2012
Certification e 385,200
Certification support activities e 23,000
Market links e 42,100
Organisation and management e 353,200
Financial costs e - 22,000
Total e 671,500
Financial report
Programme donors: Total donation Forest Organization Period
(90% forest certification & certification and support
10% organisation & support)
Core donors: Total donation Forest Organization Period
(100% organization & support) certification and support
Donations received
visit the website www.theborneoinitiative.org June 2013
The Netherlands:
The Borneo Initiative
De Corridor 7
3621 ZA Breukelen, the Netherlands
Email: [email protected]
Mobile phone: +31 610 665564
Indonesia:
The Borneo Initiative
Gedung Graha Simatupang
Tower 2 Unit C Lt. 4
Jl. LetJen. TB. Simatupang
Jakarta Selatan 12540, Indonesia
Email: [email protected]
Office phone: +62 21 782 9461
Mobile phone: +62 818 401 401
Fax: +62 21 782 9462
OrganisationTBI runs its activities from two offices, one in the Netherlands and the other in Indonesia.
ColofonPictures: Rahmilyna Putri and Wim Ellenbroek
Design: Studio 10, Tineke Kooistra
Printer: drukkerij Mart. Spruijt BV, Amsterdam
This annual report is printed on 250gr FSC paper.