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Management Plan Summary

Dated Jan 15, 2015

PT. Kandelia Alam, West Kalimantan, Indonesia

PT. Kandelia Alam (referred to as KLIA) was established on November 13th, 2000. The legal basis is: Ministry of Forestry No.SK 249/MENHUT-II/2008 dated June 24th, 2008 covering the Granting of Permits for Timber Forest Product Utilization in Natural Forest (IUPHHK-HA). In the case of KLIA the production forest area covers ± 18,130ha in West Kalimantan. The results of interpretation of Landsat imagery of 2008 and macro delineation activity found that the area consists of 14,048ha of mangrove forest types (77 %), swamp forests 2,986ha (16%), and waterbodies (Pesut river, etc) 1,096ha (7%).

As a company with commitment to always work in accordance with the laws, there are a few rules and standards at national and international level to be used as a reference, such as: Regulation of the Republic of Indonesia (Law, Government Regulation, Regulation Minister), the International Convention (ILO Conventions, ITTA, CITES) and FSC Standards. The company is verified for legality (PHPL – VLK Number: 25-SIC-04.1). The company joined a group that is preparing for FSC group certification and KLIA has made a public commitment to the FSC Principles and Criteria. The key FSC Standards are (FSC-Std-30-005_V1-0_En Group Entities FM Groups; FSC-Std-IDN-01-01-2013 Indonesia Natural Forest Management, Plantations and SLIMF; NEPCon-CoC-Standard-for-FME-1Sep14).

KLIA has a management permit by decree 249/MENHUT-II/2008 dated June 24th, 2008 covering an area of 18,130ha for 45 years (2008 – 2053). The status of KLIA forests is Limited Production Forest (HPT) areas. KLIA is located in the sub-district of Kubu and Batu Ampar, Kubu Raya district, West Kalimantan Province. KLIA’s total 18,130ha are managed according to zonation: The zonation is based on the function of forest: Protected Areas (Buffer Zone Protection Forest, Border Rivers/Tidal flow, In-Situ Conservation Area) 3,890ha (21%), Area out of Production (Infrastructure, Rivers and Tidal Flow) 1,136ha (6%), Effective Non-Timber Production Zone and Environmental Services 615ha (3%), and Effective for Timber Production Zone 12,489ha (69%). The productive forested area of KLIA that is included within the scope of proposed FSC certification is ± 16,994ha. Waterbodies (water flow / stream), infrastructure (such as Basecamp, canals) and unproductive areas of ± 1,136ha are included in the scope of proposed FSC certification.

The villages are located around the KLIA concession include the villages of Kubu and Batu Ampar. Kubu village has an area of 234.08 km2 located in Kubu sub-district administration and Batu Ampar (BA) an area of 560.12 km2located in the sub-district of BA, Kubu Raya. Based on 2013 data from the Central Bureau of Statistics the population in the village of Kubu has as many as 1,192 heads of household with details of 2,595 men and 2,574 women or numbered 5,169 people, with a population density of 22 inhabitants/km2. The BA village has a population of 1,721 of household heads with details of 3,965 men and 3,626 women (7,591 inhabitants), with a population density of 14 inhabitants/km2. There are several types of community activities carried out in and around the area near KLIA, which is harvesting fish, crabs, shrimp, “kapah”, forest products and rain-fed rice cultivation. Fishermen from the villages Kubu and BA are operating on the Radak Guntung, Temiang, and Pandu IV river which is included in KLIA’s area, whereas for fishermen from BA more varied like sea fishing in the Kalimata strait. While the search for fish and shrimp are generally performed in the river by installing nets, traps and trapping crabs on the edge of the mangrove forest. In addition to farming and fishing, people also look for forest products, such as wood material for making / repairing houses, producing charcoal, making furniture, work equipment (stalk chopper / ax, rowing, etc.), or make a boat. Non Timber Forest Products include honey, fruits, palm leaf and others. In addition to economic activity, there are also socio-cultural community activities around the working area of KLIA, such as rituals or maintenance activities and security that are considered sacred in the forest and in the territory of each village. Based on identification in each village observations Malays especially local residents have implemented Robo-Robo ritual or ceremony refuse custody planting time until harvest event. In the village there is a royal tomb Kubu (As Sayyid Idrus bin Abdurrahman) and his family and palace buildings.

Social management or development of rural communities around the forest of participatory studies, directed to the issues that still need supporting information and acted upon, among other things: 1) To disseminate the results of the study villages to obtain additional information and knowledge that can complement existing information, evaluation and monitoring of at least once a year. 2) The village boundaries are summarized in the drawing can be used as the initial draft, to draft in the map of KLIA on the recognition of the village/customs of each village observations. 3) socio-economic approach needs to be done through the development of community outreach programs including the annual work plan or socialization, training skills, collaboration/partnership with the local community and cooperation with relevant agencies. 4) It should be taken proposal requests support from the company, but did not rule out the existence of a coaching program at the discretion of the company. 5) In the process of planning and implementation of programs of social management activities, should involve village institutions (Government, Traditional Institutions, Religious Institutions) and transparency communicated to the local community. In addition to the community development support KLIA also opens the opportunity for local people to work as a permanent employee or contract employee, permanent local employee 11 men and 4 women, while the contract employee were 9 men. And to improve the ability of workers training for staff / employees is provided in the field of implementation of Best Management Practices (BMPs) such as reduced impact logging (RIL), Chain of Custody (CoC), Social Management, Environmental Management, Mapping, and others according to the FSC standards.

Based on the biophysical conditions dominated by mangrove forests, the applied silvicultural system is the Mangrove Forest Silviculture System (Seed Trees Method) as stipulated in the Decree of the Director General of Forestry 60 / Kpts / DJ / 1978 dated May 8th, 1978. This silvicultural system has been used by KLIA since 2009 until the present (Jan 2015). The system has demonstrated success, as the following indicators show: 1) The number of natural regeneration two years after harvest based on the inventory of live stands (ITT) is at ± 80%. 2) Landsat imagery of June 2011 indicates that the logged over area in 1996 to 2002 in the S. Pesut Keluang and Sepada area has already established secondary forest. This indicates that the activity of natural and artificial regeneration has occurred. 3) Based on Table Projection Volume Production/Yield Prediction of Rhizophora apiculata at West Kalimantan, Riau and West Papua (Y. Iiyama & F. Mulia, 2004), the volume stands at 25 years after harvest should reach 387.12 m3/ha. 4) The results of Finitya and Prof. Nengah in 2013 with permanent plots based clusters, obtained MAI and CAI on 15-year-old trees of 7.46 m³/ha/year and 23.09 m³/ha/year. On 24-year-old trees, the MAI was of 9.20 m³/ha/year and CAI 12.31 m³/ha/year. 5) The measurement results in a permanent plots on 8-year-old trees, obtained MAI of 5.10 m³/ha/year and CAI 16.01 m³/ha/year. 6) With a 20-year cycle the stand will produce a greater volume than the volume of forest stands. IHMB results are the basis for determining the production target in the KLIA Work Plan document is equal to 184.19 m3/ha, which means logging plan is still lower than its increment.

KLIA manages mangrove forests under inundated conditions when sea water is high and dry conditions when sea water is receding, therefore harvesting activities cannot be done mechanically but are done traditionally using a sled tool called “ongkak” and wooden planks trails when skidding. During high tide the water flow is used to extract cut timber. With the manual chainsaw harvesting techniques, the impact is not as big as it is caused during harvesting activities on land/hill location where heavy equipment is used. Based on the implementation of environmental management and monitoring KLIA carries out every 6 months, it is proven that subsidence has never happened, as well as abrasion or erosion due to the location of the work area located in the area with class delta environment protected from the onslaught of the sea. Based on the survey conducted on annually logged over areas, natural regeneration is on ± 80% of the cutting area and there only needs to be ± 19% area of enrichment planting and ± 1% rehabilitation area (former skid trails and landings).

Based on 2013/14 survey results of HCVF identification, there are two types of forest ecosystems within the concession area of KLIA, namely: mangrove Ecosystems and swamp Ecosystem (Swampy). System monitoring forest growth and dynamics developed by KLIA is method of permanent sample plots (PSPs) by utilizing scattered permanent plots (IHMB) and assigning of at least one plot on annual harvested areas and in conservation areas, so that the dynamics of the forest will be monitored periodically. The data that is monitored is the type of flora and fauna, especially species including in the category of threatened, endangered, endemic and protected (CITES); The density of flora (trees / ha); Important Value Index Type (IVI) to monitor the dominance of each species of flora in every level of growth (seedlings, saplings, poles, and trees); Shannon index (H ‘) to monitor the level of steadiness habitat / regeneration; Conditions fauna especially for mammals, birds, and reptiles; Measurement of pH and salinity of the water and soil to see the chemical changes that occur as a result of logging. Making permanent plots done when conditions are not yet harvested forests and after harvest. The data obtained will be analyzed by the method of comparison of each monitoring period so that the condition of forest dynamics can be monitored. Monitoring period in each forest type is done every 2 years. High Conservation Value (HCV) area has been surveyed and analyzed in 2013 and the report was completed in early 2014 following the peer review conducted by 3 independent professionals. List of HCV areas contained within the KLIA is HCV 1 (1.1, 1.2, and 1.3), HCV 2 (2.2), HCV 3, HCV 4 (4.1 and 4.3), and HCV 6 with total area 4,057ha. The entire area has been designated as HCVA, there are no harvesting activities, should be monitored and its secured against outside interference and maintained its existence so that high conservation value can still be saved for future generations.

Harvesting activities undertaken will certainly have an impact on harvesting plots. In its efforts to reduce the impact it had on the plot logging KLIA does an Estimation and Mitigation of Logging Impact. The first stage is the identification of the location, the effects are likely to occur as a result of mangrove logging is estimated on the protected path (unintentionally log trees on a protected path), the cutting block (unintentionally cut parent tree, unintentionally cut feed and nest tree species, disruption of HCV), skid trails (the presence of soil compaction result in disruption of regeneration, splash lubrication on the rail road skid into the soil layers that can lead to contamination), a collection timber (landings) / “Betau” (broad landings in excess provisions, soil compaction), the flow of water (changes in water salinity, water pH changes, disruption of fishermen because the path used for transport), basecamp (plastic garbage / junk others scattered around the lodge work, disruption of protected lanes), as well as the canal, widening and or cleaning water flow (disruption nest and animals feed, resulting in open areas along the canal). The work done in mitigation and rehabilitation of the impact on a protected path to widen the protection path according to company policy exceeds government rules, do the marking boundaries of protected lanes before logging, minimizing the use of a protected path for the location of landings, placing the work hut behind the protected path, extending the wood pile, and reinforce the agreement with field workers to ban the opening of a protected path, at least 1 year to be monitored to measure the area of protected lines felled, then do rehab on the line, and give strict punishment on the guilty executors. On the cutting block with a clear sign to the natural regeneration parent tree and the tree nests and animal feeding trees, socializing on the types of flora and fauna are protected in the form of posters, if the cutting blocks of flora or fauna protected found it then marked and ± 17 meters radius prohibited to cut, the monitoring carried out on the logged to examine the parent tree, the number of regeneration at 1 year after logging and when less in the second year after logging enrichment, as well as maintaining enrichment plants. On the road skid, by making a map plan skid, minimizing the length of skid trails, use of lubricants is minimized, monitoring compaction and splash lubrication, if compaction occurs and the number of seedlings uneven then planting a distance of 2×2 meters in the former road skid. On the landing, with broad landings should not exceed 1% of the harvesting block, the determination of the landing site must be authorized by the Assistant for Production, in the former area of landings made replanting with a spacing of 1×1 meters. In transit lanes to avoid the possibility of lubricant spills into waters, reducing the speed to waves generated not cause abrasion, cleaning trees, branches, or twigs that fall into the river so as not to interfere with the activities of fishermen, the monitoring carried out a year before and after logging to monitor pH levels and salinity water, annual measurements to determine the pH and salinity conditions return to normal. At the lodge work by attaching a notice board for not littering, providing bins, making a special place to store used oil, monitoring the former lodge work to check the rest of the items that can interfere with the growth of seedlings, planted with a spacing of 1×1 meters. In the canal, canal making is the last option of planning, if it has to be done, it must avoid complete logging along the edges, and following a path of less tree damage (no need to follow a straight line). If there is a nest tree or animal feeding tree, the canal must be deflected, leaving the tree every 50 meters in order to re regeneration can occur, avoiding the use of excavators in land, calculate the total area used for canal work, no later than one year after harvesting the outskirts of an excavated channel to be replanted with 1×1 meter distance with the appropriate tree species.