Stora Enso to Own 60 Percent of Indonesian Plantation ProjectNFDH now holds 60% of the shares. PT Inhutani III, an Indonesian state- owned forest company, holds the remaining 40%.
PT Finnantara Intiga's plantation activities have been on hold due to ownership structure arrangements. The plan now is to activate operations, with a view of producing raw material for pulp industries in the region. Stora Enso will continue to monitor the business environment and review plantation development options accordingly in order to pursue its overall corporate fibre strategy of securing future access to low-cost fibre resources in Asia.
PT Finnantara Intiga was established in 1996. The original aim of the company was to establish approximately 100,000 ha of fast-growing plantations, consisting mainly of Acacia mangium and Acacia crassicarpa tree species. Between 1996 and 1999 it established 23,000 ha of plantations. The target is to reach 50,000 ha of plantations by the end of 2003. The company holds a timber estate concession of almost 300,000 ha. The joint venture company is fully committed to environmental and social sustainability. Finnantara thus establishes plantations only on degraded areas, such as grassland and bushland. The company has also developed a comprehensive scheme for involving local communities in its operations, and is carrying out extensive research to secure protection of biodiversity.