The Headlines Indonesian Forest Update

Association of Indonesian Forest Concessionaires e-Newsletter Edition 001/V/2020

Happy Eid Mubarak

Association of Indonesian Forest Concessionaires 1441 H Happy Eid Mubarak from APHI Management and Employees May the deeds of worship be accepted by Allah SWT

APHI Forest aphi.forest APHI_forest aphi_forest [email protected] www.rimbawan.com ©Humas APHI 2020 Asosiasi Pengusaha Hutan Forum Komunikasi Masyarakat Perhutanan Indonesia Boosting Forest Exports Post Covid

Jakarta. The recovery process for the forestry industry affected by the Covid-19 pandemic must begin early in the second semester of 2020. As the spearhead for Indonesian exports, support from the Embassy of the Republic of Indonesia is imperative, explained Indroyono Soesilo, Chairperson of the Indonesian Forest Concession Association (APHI), formerly Chairperson of the Indonesian Forestry Community Communication Forum (FKMPI) after a dialogue with the Indonesian Embassy for Korea and Japan at the Center Hotel in Jakarta on Monday (05/18).​ ​ "FKMPI supports the steps the government has taken in a series of policies that ease the burden on the business sector in the forestry sector in the face of the Covid-19 pandemic. These policies will help safeguard post-Covid-19 economic conditions in the forestry business sector, specifically to maintain the uptake of labor from upstream to downstream, which currently employs around 625.00 workers," said Indroyono. ​ ​ He added that FKMPI will engage in an intensive dialogue on the strategy of increasing exports together with the Ministry of Environment and Forestry (KLHK) and the Indonesian Embassy in the main destination countries for Indonesia's processed wood exports. The dialogues held by Indonesian Embassy in Seoul and Tokyo marks the first step towards recovery. ​

APHI Forest aphi.forest APHI_forest aphi_forest [email protected] www.rimbawan.com ©Humas APHI 2020 Government Steps to Relax Fiscal Policies

Amid the global pandemic, the Indonesian Forest Concession Association along with the Indonesian government has done all it can against the current conditions and strived to survive while keeping as many people employed as possible.​

The government has taken action through relaxing policies that considered and involved advice from APHI. ​

In a virtual APHI Limited Management Board meeting on Wednesday, (13/05) General Chairperson of APHI, Indroyono remarked on some the progress that has been made.

DR payment Expansion of in Rupiah the cross Forestry multi- through section of business policy revision PP 3 Merbau 7 in one business 12/2014 on processed Proposed permit 1 Forestry non- wood and erasure of tax revenue through the 5 value-added revision of Permendag P.15 / 2020. Policy Relaxaation Requests for Proposed dispensation over the Relief of DR & property tax issue of a moratorium on the circulation of pine PSDH through Proposed relief based on installments for the effective sap out of Aceh, a expansion of 6 moratorium on forest 2 12 months for tax incentives area of the RKT inspected 4 and the 8 management in Maluku, timber implementation an increase in rent for of NJOP water use by the nationally Directorate General of Sea Relations and plant quarantine by the Ministry of Forestry

Conduct dialogue with the Indonesian Embassy in Strengthen the the main destination solidity and role of countries for the export of FKMPI Indonesian processed Wood wood 1 2 3 Export Recovery Intensify bilateral meetings ©Humas APHI 2020 between associations through the Zoom application, to map problems and solutions

APHI Forest aphi.forest APHI_forest aphi_forest [email protected] www.rimbawan.com ©Humas APHI 2020 Fiscal Incentives for the Forestry Industry

The Covid-19 pandemic has created various challenges A. for the forestry industry. April 2020 Export down Turun 10 % The government has launched a fiscal stimulus plan for sectors directly affected by the Covid-19 pandemic. Earlier in March, the government also issued phase II of their fiscal stimulus policy through Minister of Finance Regulation (PMK) No. 23/2020 in order periode April 2019 to maintain business liquidity. Additionally, the government also issued a non-fiscal stimulus to boost exports and imports. The main export destinations for Indonesian processed wood are China, Japan, the United States, the European However, the forestry sector has not been mentioned as a recipient Union and South Korea of the fiscal policy incentives. In response to this, forestry entrepreneurs through the Indonesian Forestry Community Communication Forum have sent a letter to the government pertaining to the inclusion of the forestry sector.

In April, lawmakers revised the PMK 23/2020 by expanding industries and sectors that received fiscal incentives through PMK Exports in the downstream 44/2020 to 18 sectors, which included the forest industry. sector will decline further in Quarter II, which in turn will have an impact on declining However, only the natural forest, teak and rubber industries were to performance in the upstream receive the fiscal incentives. sector, which is the main buffer in supplying the raw material needs of the Subsequently, the Ministry of Environment and Forestry has forestry industry. proposed additional tax incentives for the forestry sector as stipulated in PMK No. 44/2020, to the Coordinating Ministry for Economic Affairs and the Ministry of Finance. Maintain jobs in this sector which currently employs around 625,000 people The upstream sector related to this proposal is the holder of a business license for the utilization of Timber Forest Products in C. Plantation Forest / plantations, the holder of a permit for utilization of Non-Timber Forest Products, the holder of a permit for timber forest products Restoration of Ecosystems and Perum Perhutani, which With the Covid pandemic currently employs a workforce of around 500,000 people from the in its throes, the financial condition of the upstream total workforce in the upstream sector of 625,000 people. (*) forestry sector is quite vulnerable due to the sluggish cash flow which is sure to have an impact on the weakening of the company's ability to pay working capital loans, investments and production facilities / equipment to the banks.

APHI Forest aphi.forest APHI_forest aphi_forest [email protected] www.rimbawan.com ©Humas APHI 2020 Forest Industry Gives Back

APHI chairman Indroyono Soesilo expressed his gratitude and appreciation to companies that have provided donations and assistance for handling COVID-19 through APHI, especially to PT. Hanurata Coy and partners, RAPP / RGE Group, APP Sinar Mas Group, Korindo Group, PT. Musi Hutan Persada, PT. Silva Inhutani Lampung, PT. Berkat Cahaya Timber and others.

The donations have been distributed through the task force from the Ministry of Environment and Forestry both at central and regional levels. "We would also like to thank the South Sumatra APHI Komda [Regional Commission], Riau APHI Komda, Central Kalimantan APHI Komda, West Kalimantan APHI Komda, APHI Komda, West Papua APHI Komda and Maluku APHI Komda who have cared for and provided assistance in handling COVID-19 . We really appreciate the support of the commissions "added Indroyono

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APHI Forest aphi.forest APHI_forest aphi_forest [email protected] www.rimbawan.com ©Humas APHI 2020 Sinar Mas Group independently provided medical aid in the form of N95 masks, surgical masks, and disinfectant wipes. Additionally, together with the Chamber of Commerce and the Tzu Chi Buddha Foundation donated Rp. 500 Billion for APD APP Ventilator and Rapid Test kits. Sinar Mas Group APP Sinar Mas China and several Chinese companies also provided 40 Tons of N95 Masks. Sinar Mas together with several other companies that are members of the Chamber of Commerce have also handed over aid through the SOE FOR THE Ministry and also to the Provincial Government of DKI Jakarta, Gatot Subroto Army Hospital, RSPI Sulianti Saroso and Persahabatan Hospital. Sinar Mas donated a total of 1 million rapid test kits (rapid test NATION : kits), 20 thousand safety coveralls, 4 ventilators, and 1 million masks. The distribution of aid took place under the coordination of the Ministry of Health and BNPB. APP Sinar Mas donation through APHI in the form of in the form of 40,000 pcs masks, 1,000 liters of Filma cooking oil, and herbal medicine packages from Lianhua Qingwen originating from China are proven to be able to prevent the development of viruses and treat fevers, colds, dry throat and stuffy nose.

RAPP / RGE Group provides donations through the Tanoto Foundation in the form of PPE that is needed by health workers, such as doctors and nurses, to handle and treat Covid-19 patients. PPE assistance RAPP includes 1 million masks, 1 million gloves, RGE Group 3,000 glasses and 100,000 ICU and non-ICU protective clothing. RAPP / RGE Group donations, through APHI in the form of in kind 20,000 pcs masks, 2,000 pcs hazmat clothes, 40,000 pcs gloves, and 100 pcs Forest Industries protective goggles.

Barito Pacific has donated 1,000 food Taking Action packages to the community in Slipi, West Jakarta. Additionally through its founder, Barito Barito Pacific Group, Prajogo Pangestu along with its PT. Inhutani II donated to the Covid-19 Post in Pacific Group subsidiaries have channeled Rp 40 billion in the Kalimantan region which includes South aid in the form of medical equipment such as Kalimantan, West Kalimantan, East personal protective clothing, rapid co-19 test Kalimantan and North Kalimantan and kits, ventilators, among others to the Covid-19 PT. Inhutani II assisted the government in the fight against referral hospital owned by state companies the Covid-19 outbreak by providing food and various referral public hospitals in Jakarta, assistance in coordination with APHI regional West Java and Banten. commission in the area.

ADR Group, through its subsidiaries PT. AAS and PT. WN Korindo group donated 120,000 masks to gave aid in the form of 500 bottles of 250 ml honey that was the people of Papua. The assistance was ADR handed to the Ministry of Environment and Forestry. The honey Korindo handed over by Korindo Group Senior Group will be distributed to medical professionals for additional Group Vice Chairman Robert Seung to nutritions for their patients. The company has also donated representatives of Merauke , food packages to communities around their concessions. , and Mappi Regency in Jakarta. Later the mask aid will be distributed to these 3 regencies with details of 50,000 for Boven Digoel, PT. ITCI Kayan Hutani provided public service announcements and PT. ITCI and 20,000 for Mappi Regency. counseling on the prevention of the coronavirus which was attended by Kayan Hutani various parties including the local muspika. The company also provided assistance to the community in the form of spray equipment along with disinfectant liquid, hand sanitizers and masks. PT. Sarmiento Parakantja Timber (Sarpatim) donated 500 masks which were handed over to the Covid-19 Kotim IUPHHK-HT PT. Muara Sungai Landak in West PT. Sarpatim task force post in Kotim Regency, Kalimantan and IUPHHK-HA (HPH) PD. Panca Central Kalimantan, as well as provide PT. Muara Sungai Landak Karya in Maluku Province provided basic food assistance in the form of sprayers and PD. Panca Karya packages to 1,000 villages around the forest to materials to make disinfectants to help ease the burden on the community during Seruyan Hulu District and Central quarantine Seruyan District Sub-Districts.

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APHI Forest aphi.forest APHI_forest aphi_forest [email protected] www.rimbawan.com ©Humas APHI 2020 APHI Komda Riau provided counseling and 100 sets of disinfectant spray kits to the Riau Regional Police. APHI Komda Riau also provided assistance in the form of food packages through BPHP region III Pekanbaru Komda APHI and distributed 1,003 food packages directly to the poor, impoverished communities, orphanages, the blind, orphans, Riau church members and pilgrims of affected mosques in Pekanbaru.

The South Sumatra APHI Regional APHI Komda Central Kalimantan Commission in cooperation with the provided assistance by donating Komda APHI DAS Forum has conducted Limas - Personal Protective Equipment (PPE) Sumatera Selatan Komda APHI C19 Action by conducting counseling 500 sets of hazmat suits to the Central Kalimantan Tengah and distributing masks, hand Kalimantan COVID-19 Task Force. sanitizers to the public. The regional Additionally it also provided 250 food commission also provided food packages to the packages for the people of Central community through BPHP V Palembang Kalimantan through BPKH XXI in Central Kalimantan. Komda APHI West Kalimantan Komda APHI provided 520 food packages to the Kalimantan Barat community West Kalimantan through BPHP Region VIII in Pontianak.

Komda APHI Papua provided 300 packages of basic necessities and Komda APHI APHI Komda masks to the public Papua through BPHP Antisipasi Wabah COVID-19 XV region

Komda APHI Maluku provided 200 packages of Komda APHI basic food needs to the community in Maluku Maluku Province through BPHP XIV in Ambon.

In order to help the government fight the Covid-19 outbreak Komda APHI West Papua donated 1,000 food packages through especially in areas outside of the West Papua Covid-19 Handling task force. Package worth Komda APHI Rp 140 million rupiah and distributed it to affected communities Java, the Regional Commissions Papua Barat including Honorary Workers, Widows / Widowers, and of the Indonesian Forest Pensioners Concession Association (Komda APHI) has taken an active role in helping those who need it the https://www.rimbawan.com/berita/kontribusi-komda-aphi-dalam-memerangi-pandemi-covid-19/ most.

Chairman : Sugijanto Deputy : Purwadi Soeprihanto Editorial Managing Editor : Trisia Megawati ©Humas APHI 2020 Team Editorial Members : Herry Prayitno & Vivid V Visual Design & Layout : Fajar Mart Setyawan

APHI Forest aphi.forest APHI_forest aphi_forest [email protected] www.rimbawan.com