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Korindo Group in Perspective of Development Contribution

PROKAL.CO, PANGKALAN BUN – The existence of business is expected by all parties to contribute to the regions involved in the development process, as part of the business world. Timber Plantation Division of Korindo Group, which was established in 1998 and obtained concession of Forest Plantation Wood Production Permit in Industrial Plantation Forest (IUPHHK-HTI) of approximately 94,384 Hectares (Ha), is a company engages in the development of industrial plantation forest.

Industrial plantation forest development by Korindo started in 1999, despite the global financial situation at the time, which was still being overshadowed by the threat of monetary crisis. The types of industrial plants that were being developed are acacia mangium and eucalyptus pellita.

“Since the planting in 1999 until 2017, from 94,384 Ha of land, the effective land used for planting and producing is approximately 79,924 Ha. Timber Plantation Division has produced wood of approximately 10 million cubic meters from acacia mangium and eucalyptus pellita. The development process of HTI plants has entered third cycle of planting and second cycle of production,” said Director of Timber Plantation Division of Korindo Group, Paul Jongmyung Park Ph.D.Bsc to Kalteng Pos, Friday (25/8).

In the third plantation cycle, after going through a research process by the research and development division, we have found eucalyptus clones that grow bigger than the clones that have been planted. We also found planting techniques and spacing that can accelerate the process of plants’ growth.

The existence of Industrial Plantation Forest is helping the government and the world to reduce global warming and greenhouse effect. Since it was built in 1998, The Timber Plantation Division has contributed to the region and the country, namely tax payment, Land and Buildings Tax (PBB), Forest Resource Rent Provision (PSDH), the workers’ Income Tax (PPH), Increment Value Tax (PPN), vehicle/heavy equipment tax, and so forth. In 2017, this division was awarded as the largest contributor of export duty in 2016 and was awarded as the 2016’s most favorite document administrator from Pangkalan Bun Customs Office.

“In addition, Division conducts social management or CSR in the form of clearing and constructing road access to the village, building houses of worship, providing scholarships, providing teachers’ fees, supporting religious/national days, donating for natural disaster relief and so forth for villages located in company’s concession area,” added the General Manager of Timber Plantation Division of Korindo Group, Rais Sugito.

The most fundamental contribution is opportunities for the people living in the concession area to work and strive. Currently, there are 1.401 direct workers/employees. For planting/maintaining activities within self-management worker groups are 1.198 workers. As for the land clearing activities and wood production through 13 sub-contractor partner companies, 400 workers are absorbed.

Korindo’s vision is to participate in implementing and supporting government programs, especially in the sustainable use of natural resources by keeping the principle of production sustainability, social sustainability and environmental sustainability.

“Our first mission is to help grow the forest, which is sustainable and environmentally-friendly, improve the forest management industry to increase added value and gain of the country’s foreign exchange, provide employment opportunities for surrounding village residents in order to improve welfare and increase participation and contribution to the development area,” he concluded.

The vision and mission is a reflection of Division’s stance and purpose to build. With a slogan, “Working for the nation” in the building process, Korindo still puts forward synergy with every stakeholder involved, whether it’s government, community or other various parties.


Source : ProKalteng