SEA: Indonesia : PT. Perum Perhutani

Vision:

To become a sustainable forest manager for the maximum benefits and prosperity of the people.

Mission:

Managing the forest resources in sustainable way based on its characteristics and watershed carrying capacity, in order to obtain the benefit from woods and non wood forest products, ecotourism, environmental services, agro-forestry and other potential forest resources to leverage profits in supporting continuous company growth.

Building and developing modern and professional company, organization and corporate human resource and at the same time empower forest village community through the development of local institution and cooperative or forest village communities.

Supporting and participating in country development at national and regional levels actively as well as contributing in solving the common environmental problems at national, regional and international levels.

FOREWORD

Perum Perhutani (State Owned Forest Enterprise) institution trusted to manage the forest resources in Java plays an important role to secure all forest state lands in Java and Madura as supporting system for environment, social and economy of the people in Java.

In line with the task, Perum Perhutani is demanded to become a healthy corporation seen from forestry point of view, and from its operational and financial performance. These are aimed to safeguard a functional balance of both from ecological and economic aspects.

This company profile provides all information of Perum Perhutani with respect to the practice of governance/management including the activities in achieving towards corporate vision and mission. Furthermore,
Perum Perhutani is optimistic on the bright future based on great existing of forest resources, a strong and visionary management and consistency in fulfilling international standard to achieve a prospective business in the future.

Board Of Directors & Commissioners

Board Of Directors

President Director & General Affair Director
Dr. Ir. Upik Rosalina Wasrin, Dea

Planning & Production Director
Ir. Haryono Kusumo

Marketing & Industry Director
Ir. Achmad Fachrodji, Mm

Finance Director
Ans Kosasih, Se Mm

Board Of Commissioners

Head
Dr. Ir. Muslimin Nasution, Apu

Member
Dr. Ir. Harianto
Dr. Maurin Sitorus, Sh
Dr. Ir. Boni Siahaan
Dr. Ir. Boen M. Purnama
Ir. Lex Laksamana Zainal, Lan
Dr. H. Soekarwo
Ir. Sri Puryono, Ks, Ms

Secretary
Drs. Hendradi Gunarso, Mm

PERHUTANI  AT GLANCE

The history of governance in Java and Madura islands was started in the period of Dutch government followed then by a long development in its management.

In the period of the Dutch Governor General Daendels, in the early of 1800 the forest plantation was established especially, teak plantation and in 1865 a law on forestry was enacted in Java and Madura. It was during this period the forest (timber) governance was begun.

In 1972 Perum Perhutani became a BUMN (State Owned Forest Enterprise) acted by the Government Regulation Number 15 of 1972 with its working area initially covering the state owned forest resorts in Central and East Java Based on number 2 of 1978, this working area was extended to state owned forest resort in West Java Province.

In 1986 Perhutani was once again adjusted as mandated by the government regulation number 36 of 1986 on State Owned Forest Enterprise (Perum Perhutani) and was revised by the Government Regulation (PP) number 53 of 1999 on State Forestry Public Corporation (Perum Perhutani).

During the era of Kabinet Reformasi, pursuant to the Government Regulation number 14 of 2001, the Government has stipulated Perhutani as BUMN in the form of Limited Liability Company (PT). In consideration of all aspects. The existence of Perhutani as a corporation has been returned to Perum (public corporation) based on the Government Regulation (PP) number 30 of 2003. In its operation, Perum Perhutani was coordinated under the
Ministry of State Owned Enterprises (BUMN) and received a technical assistance from the Ministry of Forestry.

In executing the task and function, Perum Perhutani is managed by the Board of Directors responsible for the corporate governance and supervised by Board of Commissioner.

WORKING AREA

Perum Perhutani’s working area consists of :
The state forest in Central Java Province- is called as Unit I Jawa Tengah.
The state forest in East Java Province- is called as Unit II Jawa Timur.
The state forest in West Java & Banten Province- is called as Unit III Jawa Barat & Banten.

Forest Areas by Function

Forest Resource

The forest resources governance by Perum Perhutani, they are grouped into 2 (two) corporate classes (KP) namely KP jati and KP rimba. The forest governance is generally dominated by KP jati and KP pinus where KP jati covering the area of 1,240,558 hectares (51.21%) and KP pinus covering the area of 859,300 hectares (34.79%). Detailed area per corporate class such as follows :

In attempting to regain the forest potencies, particularly from uncultivated land covering the area of 396,985 hectares, Perum Perhutani has declared a campaign named Green Perhutani of 2010. Forest rehabilitation of ±100.000 hectares per year is conducted by planting Jati Plus Perhutani (JPP), a fast growing teak species and having a short cycle.

ORGANIZATION AND HUMAN RESOURCES

Perum Perhutani represents a large company in reference to the coverage of its managed area, function and variety of activities, organization level and number of employees. The current existing organization has been obviously capable of handling the overall dynamic characteristics of the organization.

Each Unit led by Head of Unit assisted by Vice Head of Unit and some Chief of Bureau. Each Unit subordinates several Forest Management Unit (FMU) known as KPH, Wood Working Unit Industry known as IPKJ and KPE (Export Handling Unit) led respectively by an Administrator.

By considering  at those condition and business environment in Indonesia, the company demands a flexible and dynamic organization, Perum Perhutani has separated its forest governance to be handled by the FMU and business management by KBM (self sustainable business unit) led by a General Manager.

Perum Perhutani currently employs 29,668 workers with various compositions according to their employment status, group of age and educational background. Human resource management is conducted professionally by a performance and competence based method.

HUMAN RESOURCE TRAINING  CENTRE (PUSDIKLAT SDM)

The Training Centre is located in Madiun – East Java.  Equipped with qualified lectures which have post graduate background, fully furnished accommodation, facilities and also motivating environment, this venue is expected to produce professional human resources in the field of forestry practice and management. Trainings carried  out  for internal use consist of :

Hierarchical training (Diklat Penjenjangan)
Basic training (Diklat Dasar)
Competency training (Diklat Kompetensi)

While for the external use, based on the availability of the accommodation, the training center also collaborate with other institutions undertake courses such as, the training for retirement preparation, computer course, worker health and safety course, etc.  Beside this activities, the venue also used for organizing the seminar, workshop and job training.

FOREST MANAGEMENT ACTIVITIES

Forest Planning Covers :
Corporate General Plan (RUP) constitutes an overall long term plan. This contains policies and strategies of optimizing corporate resources to achieve the corporate goals.
Forest Sustainable Management Plan (RPKH) is a plan to realize sustainable forest management. To implement the plan, forest resources are designed through several activities, they are the bordering system, forest portioning, forest inventory, line improvement, forest measurement and mapping.
Five Year Corporate Planning (RLTP) is a plan for operational policies and implementation of the effort to attain the corporation goal in 5 (five) years.
Corporate Annual Working Plan (RKTP) describes detailed activities plan for one year to come as the basis for making Corporate Budget Working Plan (RKAP).
Annual Technical Plan (RTT) is a plan drawn up by referring to RPKH.

FOREST RESEARCH AND DEVELOPMENT CENTRE

Forest Research and Development Centre (PUSLITBANG) in Cepu was established in 1998 as a research and development institution for forest resources.  The objective of Puslitbang is to increase forest resources productivity and biophysical quality by preparing a high quality forest plantation seeds

The known high value products are :
20 year cycle Jati Plus Perhutani (JPP) may produce approximately 200m3 per hectare
Certified seed from Bandung’s seed certification body (Jati Plus seed 20 tons/year and pine seed 1.4 tons/year)
Genetic engineering for pine trees, which could produce more quantity of gum resin,
Publication from the research in the field or technology, environment and social and economics.

REFORESTATION AND FOREST REHABILITATION

Reforestation and forest rehabilitation are performed in previous timber cutting and non productive location. It will involve an active role from the local community using Collaborative Forest Management system (known as PHBM).   In the field, it practiced either with the intercropping or ‘banjarharian’ system, planting pattern fixation, spacing, or development of other productive businesses.
Reforestation program with intercropping method gives significant contribution in food production and in short term it yields job opportunities for the community.

FOREST MAINTENANCE

Forest maintenance has the objective to obtain qualified stem/trunk with higher economic value at the end of the cycle. The activities of this forest maintenance includes weeds removal, axillary’s buds cutting, pruning/branch cutting, thinning, pest and disease prevention, herding and other forest protections.

FOREST PROTECTION

Forest protection is an effort to prevent the forest from the disturbance such as illegal logging, land occupation, grazing, forest fire and natural disaster.

Forest safeguarding effort is conducted by preemptive, persuasive, preventive and repressive measure by enhancing rural community participation through PHBM system (Collaborative Forest Management with the Community). A repressive measure is carried out by cooperating with the police and other authorities.

FOREST PRODUCT HARVESTING

Forest product harvesting includes the activities of terracing, felling, trunk/stem grouping, transportation and piling up in log yard.  Most timber species are teak, pine, mahogany, Agathis, Acacia mangium, Albizia, and other valuable local trees.

Company also harvesting non timber product; among others pine gum, lac, cajuput oil, honey, raw silk, coffee, atsiri oils, and others.

PRODUCT INDUSTRY

Perum Perhutani operates forest product industries, namely Wood Working Industry in Cepu, Brumbung, Gresik and 12 unit of Sawing Facilities producing among others : garden furniture (GF), housing components, veneer t, TOP, parquet block, flooring, Gum Rosin and Turpentine processing factory(8 units), cajuput oil factory (12 units), seed lack factory and silk yarn spinning factory.

MARKETING

As a direct actor in its marketing, Perum Perhutani must exist at the position focusing on customer care as an effort to obtain a leading competitive market. In the era of globalization, it requires the company to be able to compete regionally, nationally as well as internationally. Focusing on customer care program will give a sufficient benefits and outcome, among other things :

Improving the corporate image and customer loyalty.
Customer oriented and care implementation;
Minimizing pricing sensitivity factor from fluctuating.
Assuring the product and service produced as expected by the customer
Enhancing and maintaining customer satisfaction
Strengthening the relation between the customer and vendor
Improving sustainable operational activity of the corporation
empowering employees participation and open communication with the management

Perhutani customer care program has the objective to attract new customer and retain the existing customer, furthermore customer loyalty could be maintained and enhanced through products and services which meet the values demanded by the customer, not only at national level but also at the broader scale.
 
“PERUM PERHUTANI POSITIONING,  FOCUSING ON THE COSTUMER CARE THROUGH PROVIDING CERTIFIED PRODUCTS TO ACHIEVE COMPETITIVE ADVANTAGE  IN THE ERA OF FREE TRADE AND  GLOBALIZATION MARKETING”

OUTSTANDING PROGRAMS

GREEN PERHUTANI 2010

The green Perhutani 2010 is one of Perum Perhutani commitment to reach its vision “To become a sustainable forest manager for the maximum benefit and prosperity of the people”. By 2010, through this program will make the entire forest in Java covered by trees.  This program will be based on the support from the forest rural community Association (LMDH), as the co-worker or business partner of the company.

GOOD CORPORATE GOVERNANCE

Perum Perhutani as a business entity has committed to apply the principle of Good Corporate Governance (GCG) namely the corporate procedural principle fulfilling some principle such as; transparency, accountability, fairness, self-reliance, reasonability, and free from corruption, collusion and nepotism. To implement the program, the Board of Directors has appointed a GCG team with the main task is to facilitate the acceleration in the achievement of such required principles.

COLLABORATIVE FOREST MANAGEMENT WITH THE COMMUNITY

Not less than 5,552 forest rural communities exist side by side with state forest,  As a part of the corporate commitment and its social responsibility (Corporate Social Responsibility), Perum Perhutani has collaborate  with the communities and other parties in forest governance by means of the collaborative forest management  system  This system launched since 2001.

The sharing spirit in system gives a positive contribution to the communities. Not only the direct benefit for job creation and business opportunity but also they may share the forest produces in the form of timber and non timber products. Until 2008, the value of this profit sharing received by the communities has reached Rp.127, 759 billion not including the crop products from forest intercropping system reaching Rp.5.83 trillion per year.

The quality of this system is always evaluated and enhanced. Therefore, Perum Perhutani applies a CFMC Plus system, by enhancing and strengthening the purchasing power of the community and improving the community health with a flexible, accommodative and participative ways.

BUSINESS DEVELOPMENT

The issuance of decision of the Minister of Forestry no. P.50/Menhut-II/2006 dated July 7, 2006 on guidance for business cooperation by Perum Perhutani within the forest resort, and followed up by the decision of the managing director no. 986/Kpts/Dir/2006 dated September 7, 2006 will give more rooms and opportunity for this business development within Perum Perhutani forest area.

Cooperating opportunity for those business development among others things :
Gum rosin and turpentine derivative industry
Packaged drinking water under AIR PERHUTANI brand.
Increasing the tapping potential area by benefitting pine plantation outside Perum Perhutani working area
Planting the fast growing species within the framework of acceleration of rehabilitation
Planting and marketing Jati Plus (teak plus) Perhutani with the business partner
Development of Hambalang Forest Garden with PERSAKI
Benefiting from environmental services such as natural ecotourism, clean water and clean air (carbon trade)

CERTIFICATION OF SUSTAINABLE FOREST MANAGEMENT

As stated in the Vision and Mission, a road map to achieve sustainable forest management is bleu printed. As an initial step several FMU in Unit I, Unit II and Unit III have started to apply the principles and criteria to fulfill the international standard as lined by Forest Stewardship Council (FSC).

Positive support from international institution is given to this effort of Perum Perhutani to regain the certificate of FSC Sustainable Forest Management. Tropical Forest Trust (TFT) as non profit organization from Switzerland has cooperated with Perum Perhutani since 2002 within the framework of preparing the fulfillment of certification standard in FMU Kendal, FMU Kebonharjo, FMU Cepu, FMU Randublatung, FMU Ciamis and KBM Industri Kayu in Cepu and Brumbung.

World Wildlife Fund (WWF) Forest Trade network Indonesia, since 2005 also has cooperated with Perum Perhutani in FMU Bojonegoro, FMU Jatirogo, FMU Saradan, FMU Madiun and FMU Banyuwangi Utara.

FINANCIAL PERFORMANCE

Perum Perhutani is categorized as the company with strong liquidity. The corporation total asset indicated an excellent trend in 2007 to the amount of Rp.1.41 trillion and in 2008 increased to Rp.1.53 trillion.

Marginal profit acquisition in 2007 suffered an increase compared to that in previous year. In 2008, profit gain (unaudited) reached Rp.200.318 billion increase compared that in 2007 reached Rp.51.475 billion. To maximize this profit gain, Perum Perhutani has developed not only its non timber business but also performing saving efforts and cost controlling in accordance with the priority scale.

Comparative Balance Sheet
Des 31, 2002-2008
(In Billion Rupiah)

Comparative Loss And Profit Statement
Des 31, 2002-2008
(In Billion Rupiah)

Performance Valuation Of 2002-2006

OUR PRODUCTS

It is more than one century Perum Perhutani has been servicing the nation and this country. We produce our keep developing products according to both domestic and international market demands. We always yield high quality and environment friendly products.

Buying our product means that you play an important role and support sustainable forest management for the current and forth coming generations.

NON WOOD FOREST PRODUCT

Gum rosin
Turpentine oil
Copal
Cajuput oil
Ylang-ylang oil
Seed lack
Raw silk
Honey and royal jelly
Packaged drinking water ‘AIR PERHUTANI’

PRODUCT OF WOOD WORKING INDUSTRY
Rough sawn timber
Material for furniture
Material for fixture
Material for indoor
Material for flooring
Material for vineer

FINISH PRODUCT
Garden furniture
Housing components
Indoor furniture
Flooring

LOGS PRODUCT
Jati (Tectona grandis)
Pinus (Pinus merkusii)
Mahoni (Mahagony sp)
Sonokeling (Dalbergia latifolia)
Sonokembang (Pterocarpus indicus)
Sonobrit (Dalbergia sp)
Damar (Agathis sp)
Jabon (Antocephalus chinensis)
Sengon (Paraserianthes falcataria)
Gmelina (Gmelina arborea)
Rasamala (Altingia excelsa)
Johar (Cassia sp)

ECOTOURISM

To increase the benefits from forest resources, Perhutani has potential tourist destination in Java.  There are 128 places which have historical, cultural and specific values where they could be explored by domestic but also international visitors.  Company has commitments in the near future, with the program of customer care and customer orientation, managing this tourist destination professionally will contribute a significant role for the company growth. 

(Tampilkan gambar2 nya…)
Tanjung Papuma
Kawah Putih
Baturaden
Cilember

CLOSURE

The successful strategy in the future is the corporate key to survive. Programs have been determined and scheduled, to speed up the achievement of the goal.  The program implementation is always under controlled to minimize the risks of failure.

Perum Perhutani has initiated its steps with fully committed to begin a good forest management and business procedure (good corporate governance) in all aspect of corporate activities.  It carried out to fulfill the principles of transparency, accountability, fairness, self-reliance, reasonability and free of collusion, corruption and nepotism.

The managements commit to apply good corporate governance as a tool secure the assets and to assure that the decision taken solely for the benefit and interest of the company and consistently support community involvement in forest management.
 
Perum Perhutani activities in the future will be focused on the achievement of corporate vision and mission to become sustainable forest manager for the maximum benefit and prosperity of the people. The company has a reliable strategy which aiming for company continuous growth and clear, measurable, and achievable target in a specified period of time.