On September 23, 2005, the Rainforest Alliance issued a press release announcing the certification of PT Erna Djuliawati, a 184,206 ha forest concession in Central Kalimantan. With this achievement, PT Erna joined PT Diamond Raya as the second natural forest concession certified under the Forest Stewardship Council (FSC) certification scheme in Indonesia.
PT Erna Djuliawati has never looked back since that eventful day in 2005 and has moved ahead from strength to strength. Now in its 9th year of certification, the management and staff of PT Erna are confident and proud of their achievement.
PT Erna Djuliawati is a subsidiary of the Lyman Group. PT Erna operates a 184,206 ha concession in Central Kalimantan and a plywood factory near Sanggau, West Kalimantan.
Like most Indonesian companies, corporate history has evolved through various mergers and takeovers. In 1999, the company negotiated a new contract with the Ministry of Forests, which issued a 70 year license based on the adoption of the TPTJ silvicultural system 1).
The company transports its logs by road to a log pond on the Melawi River, a few kilometers upstream from the town of Nanga Pinoh in West Kalimantan. From here the logs are transported by river to its industry situated on the Kapuas River near the town of Sanggau.
PT Erna operates a modern and efficient plywood factory which features 9 peeler lines and a fancy veneer section. Apart from the wide range of plywood sizes, PT Erna has developed a reputation as a manufacturer of high quality container flooring. Its fancy veneer line feeds into a sizeable production of engineered flooring products which are finished off in its subsidiary mill in Tangerang on the Island of Java.
Access to the concession is from West Kalimantan, however, traditionally access has been along the major rivers draining the concession to the East. Indigenous Dayak peoples have long since converted the area along these rivers to shifting cultivation.
The concession is home to 14 villages. Almost 4,000 people live within the concession boundary and engage in subsistence agriculture, a land use practice which is fundamentally at odds with the practice of sustainable forest management.
Good community relations, is one of the company’s strengths. The company has a full time doctor on staff and provides free medical services as well as transportation to the local communities within the concession. Community awareness of the company’s health care facilities is very high and access and use of these facilities is free to the community.
The backbone of the company’s community relations is its PMDH program2). The program includes joint demarcation of areas considered by the villages as belonging to them under a system referred to as PGM3) or, community land use areas. In addition, the company actively solicits input for local communities regarding culturally significant sites and then protects those sites from logging and demarcates them both in the field and on its maps.
PT Erna has established primary schools in 6 villages and supports 13 teachers. At its base camp, some 50% of the students come from local communities in the concession. In addition, the company provides over 20 university scholarships per year for advanced studies in Palangkaraya or Pontianak.
One of the areas where PT Erna has truly excelled is in the development of its management systems. However, insisting on quality systems costs money, hence optimizing efficiency had to become a major consideration. As a result, the concept of reduced impact logging (RIL) was quickly recognized as having the potential to contribute to increased efficiency while at the same time enhancing environmental performance.
- PT Erna implements a modified version of the TPTJ system (Tebang Pilih tanaman Jalur), or Selective Cutting and Line Planting System
- The PMDH (Pembinaan Masyarakat Desa Hutan) or Forest Village Development Program is run by the Community Assistance Department and employs approximately 50 staff.
- PGM (Pemukiman dan Garapan Masyarakat) is a land demarcation recognized at the District level of government.