Production Aspect

A. Management Plan

The 184.206 ha, forest concession area of PT. Erna Djuliawati (PT. ED). Briefs view the following PT. ED is located in Seruyan District Central Kalimantan. Geographically position PT. ED at 00o52'30" - 01o22'30" Southern Latitude and 111o30'00" - 112o07'30" Longitude East. PT. Erna Djuliawati strives to implement sustainable forest management in its concession by considering all the functions of production, ecology/environment and social aspects of forest management.

These three fundamental aspects of forest management can be harmonized and balanced only if the implementation of sustainable forest management is coordinated to take into account the interests of all major stakeholders such as government, private sector and local communities.

Towards this end, PT. Erna Djuliawati has prepared a Sustainable Forest Management Plan, which takes into account the recommendations contained in the FSC/Rainforest Alliance guidelines and Ministry of Forestry Decree of Sustainable Forest Management.

PT. ED has prepared long term management plans for two periods, 35 year cycles respectively, starting from 1999 until 2068. This long term planning has now been replaced by a 10 year planning framework according to the Ministry of Forestry's regulation called the Timber Forest Product Utilization Work Plan (RKUPHHK). The current 10 year plan is based on an analysis of field sampling referred to as a "Comprehensive Periodical Forest Inventory" (Inventarisasi Hutan Menyeluruh Berkala). The first period of the 10 year plan of IHMB 2021 - 2030 that has been approved by the Minister of Forestry.

Average production of PT. ED varies from 250,000 - 350,000 m3 per year. All the production is hauled and rafted to Sanggau in West Kalimantan Province to meet the raw material requirements of PT. ED's plywood industry.

The company prepares Annual Work Plans covering detailed elements of production, environmental and social aspects. These plans are then approved by the President Director of PT. ED (self approval).

Briefs view the following logging operation consists of: (a) arrangement of the production work area, (b) stock inventory, (c) forest road construction, (d) harvest and (e) reforestation

Main technical production activities:

1) Fundamentals of determination the annual allowance cut and wood selection for industrial purposes

PT. Erna Djuliawati (PT.ED) has made revised of Long Term Working Plan of Timber Forest Product Utilization in Production Forest Area of Natural Forest (RKUPHHK-HA) for 2021-2030 period, based on the Periodic Comprehensive Forest Inventory (IHMB) approved by the Minister of Forestry Nomor SK.808/MenLHK-PHPL/UHP/HPL1/2/2020 dated February 24, 2020 about Approval of RKUPHHK-HA based on IHMB period 2021-2030 of PT.Erna Djuliawati - Kalimantan Tengah Province.

The annual allowable cut (AAC) adjusted to the rotation or defined cutting cycle. Area AAC and Volume AAC calculation is performed by two approaches, i.e. the effective extent of the remaining virgin forest area divided by the rest of the cycle (alternative I) or the effective area for production divided by the length of the cutting cycle (alternative II). Whereas the Volume AAC is the area of multiplied by the average stand potential per hectare for all types (except protected species) which are 40 cm up in diameter and 20-39 cm in diameter.

The effective area of forested land in PBPH PT.ED is about 140.077,24 hectares and cutting cycle is 25 years. The broad AAC formula is as follows: Area AAC = (140.077,24 Ha : 25 Years) = ± 5.603,09 Ha/Year

Based on IHMB stand data and Satellite Imagery maps, the stock volume of all species (except protected species) with a diameter of 40 cm and up is about 15,551,367 M3 and a diameter of 20-39 cm is 1,125,869 M3 with an effective production area (144,236 Ha) AAC volume are as follows: AAC Volume = (15,551,367 + 1,125,869) : 25 = 667,090 M3/year

Information:
• Cutting volume of 40 cm and up = (Standing Stock 40 Up + Increment) x 0.64.
• Log volume of 20-39 cm diameter = (Standing Stock 20-39 cm) x 0.7.
• Potential Standing Stock based on Comprehensive Forest Inventory (IHMB).
• Based on the Decree of the Director General of PH No.811/IV-BPH/1994 dated 6 April 1994 concerning the Proposal to Determine Exploitation Factors and Safety Factors for PT. Erna Djuliawati is 0.64 (0.8 x 0.8).

On the implementation of timber harvesting, PBPH-HA PT. Erna Djuliawati is just a commercial wood type for industrial purposes. All production of PBPH-HA PT. Erna Djuliawati hauled to Plywood Mill Industry PT. Erna Djuliawati is located in Sanggau District, West Kalimantan Province.

2) Harvesting Techniques

In case of harvesting activities, PT. Erna Djuliawati applies tight Reduce Impact Logging (RIL) Techniques and takes into account the impacts of activities on vegetation, soil and cultural sites and protected areas. The stages of harvesting activities include:
a) Logging plan, ie making skid trail plan, marking the direction of falling trees, cutting block division and Logyard (TPn) building.
b) Logging operation, trees to be harvested which have a diameter of 40 cm up with intensively silviculture system (SILIN) technique. A tool to cut down using chainsaw. In this cutting the tree shall be considered the techniques of cutting, including fall direction, the core tree and other field conditions.
c) The log bucking and , done in such a way as to optimize the rate of wood recovery in accordance with the standards of utilization of the company.
d) Extraction, after the tree is falling down, collecting wood to the Sort-yard (TPn) log skid by using a tractor using winching technique while still considering the minimizing impact of damage to residual stands, soil and other field conditions.
e) Debarking, to peel the tree bark by using crowbar, especially the type of floater wood to avoid decaying logs caused by attacking of wood destructive insects and fungus that can reduce the quality of wood.
f) Installation of Nail was done to the base wood indicated cracked & broken, so that the crack and the splitting are not widened, so the quality of the wood is maintained.
g) Measurement of logs, measurements done by Technical Personnel for Measuring Logs (GANIS PKB-R) in Short Yard (TPN) by taking data of log, among others length, diameter tip, diameter base, average diameter, volume of log.

3) Chain of Custody

Chain of Custody in forest management is an administrative system to trace the origin of timber starting from the time of cruising at 2 (two) years prior to log harvest until the timber is transported to the log buyer or Logpond, the final recipient of the timber.
a) Timber Cruising is the starting step of Chain of Custody on Forest Management starting from Forest Inventory done at 2 (two) years before cutting. At the time a cruiser takes note of 100 % or census choosing the trees are eligible for production, individual tree coordinate, tree species or local terminology, measuring diameter brest height (dbh), tree height under the branches and barcoding by tapping double labeling each. The yellow label (for conserved tree) and red label (for tree felling).
b) All data from the forest processed at the Forest Engineering Office to be Cruising Sheet Result (LHC).
c) Entry data from the cruising sheet to the Application of Information System for Forest Product Administration (SIPUHH Online) that has been provided by the Ministry of Environment and Forestry.
d) Arranging Annual Work Plan (RKT) refers to LHC at SIPUHH Online by the time of next year's production.
e) Tree felling should leave one label on the stump and put another label on the log for further log skidding.
f) Log hauling from Log Landing (small scale log accumulation) to Logyard (TPn) hauled to the Bigger Log Yard (TPK Km-95) further hauling to large scale log accumulation as a Sortyard at Logpond Sei Kelaki as a Forest Gate (TPK-Antara) before long distance Rafting to Plywood Mill Industry in Sanggau District – West Kalimantan.
g) Production Sheet (LHP) issued when the log has been paid as a Non Tax Government Fee of Forest Resource Provision (PSDH) and Reforestation Fund (DR).
h) Long distance hauling from TPK-96 to Logpond at Kelaki, Ng Pinoh District and log rafting from Logpond Kelaki, should be attached a sheet of log legality forest product (Surat Keterangan Sah-nya Hasil Hutan Kayu/SKSHHK) attached a Statement of Origin according to FSC Provision.
i) Long distance (± 250 Km) Log Rafting from TPK Antara Ng Pinoh to Logpond Industry in Sanggau District attached a Continued Log Legality Sheet (SKSHHK-Lanjutan).

In implementing national timber legality evidence, company applicants Verified Legal Indonesian Timber (V-legal) since the installation of barcodes during timber cruising and tercetak pada Lembar SKSHHK.

4) Silviculture Implementation System

The former10 (ten) years period of the Long Term Plan of General Forest Wood Product Utilization Work Plan (RKUPHHK) period 2011 – 2020, PT. ED applies a single silviculture, i.e Selected Logging and Line Planting (TPTJ) silvicultural system using Intensive Silvicultural Techniques (TPTJ with Silin Technique) for all terrain categories.

According to the current 10 year planning of (RKUPHHK) valid from 2021 to 2030 refers to Comprehensive Inventory (IHMB), PT. ED implements a single silviculture system of Selective Tree Cutting and Reforestation of Intensified Silvicultural Technique (SILIN) for site appropriate under 25 % slope steepness terrain categories.
Intensive silvicultural technique is a silvicultural technique that combines three main elements of silviculture, namely using improved species target, environmental manipulation and integrated pest management.

Besides, planting on the planting line space, PT. ED also replants in the space of bare areas along the former skid trails, as well as on both sides of the road and bare land.
In principle, PT. ED implements SILIN silviculture based on Regulation of the Director General of Sustainable Forest Management Number P.4/PHL/UHP/HPL.1/ 6/2019 jo Perdirjen PHPL Number P.12/PHPL/SET/KUM.1/12/2018 concerning Guidelines for Intensive Silviculture Techniques (SILIN).

The Expert Recommendations for the area of PT. ED is more suitable for planting with species Shorea leprosula, S. parvivolia, S. johoriensis, S. macrophila and S. platiclados. Most of the target species planted in the area of PT. The ED is S. leprosula because besides its competitive growth, there are also many S. leprosula seedlings that are ready to be weaned for planting in the field.

The SILIN silviculture system requires systematic line planting. Besides, SILIN implementation in PT. Erna Djuliawati is also replanting along the former skid trail, both left and right side road and the bare land. SILIN silviculture using selected Dipterocarp seedlings at an intensity of 100 seedlings/Ha.

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C. Reduced Impact Logging

Harvesting activities in PT. Erna Djuliawati conducted Reduced Impact Logging (RIL) technique. Since 2009 the company has been implementing RIL consistently and continuously under training program provided by Tropical Forest Foundation starting from mapping technique, timber cruising, tree mapping, skidding road mapping, logging operation and ditching on post log harvest, etc.

After the expiry of the RIL Certificate in February 2022, further RIL is carried out by the relevant Technical Personnel while continuing to carry out the RIL principles taught by TFF.

To reduce logging waste, a quality control grading system is applied to standing trees and trees which have already been felled. Appropriate bucking techniques are always applied in the field so that logging waste is minimized over the entire cutting area. The company's utilization standards also seek to minimize negative impact to industry and minimize the logging operation cost.
To maintain the high quality of the logs, the company has implemented a "fresh-cut program". This ensures that the logs are transported to the factory with minimum delay of not more than one month. Under this program, the company has been able to achieve a high conversion recovery and maintain a high quality standard for its products.
In order to follow the transparency program of Indonesian log administration, PT. ED has been adopted an Information System Log Administration Online (SIPUHH-Online) refers to Ministry of Forestry's Regulation.

To show our commitment to sustainable forest management, PT. Erna Djuliawati has made a special effort to focused its activities under three key aspects:
1. High quality of production functions
2. Improving the social life for all communities living in and around the concession area
3. Maintaining environmental quality
Labeling (red card) for chain of custody programme link to Log Administration Forest Product Information Online System (SIPUHH Online).