Who We Are
A MESSAGE FROM THE BOARD OF DIRECTORS

Please allow us to introduce to you the Kayu Lapis Indonesia Group and its dynamic role in the development of Indonesian's Economy. The Kayu Lapis Indonesia Group represents a group of Companies of which the main business is the Integrated Timber Industry.

Wood products are the nation's third largest foreign exchange earner, after oil, gas and textiles. This circumstance provides a challenge to the Kayu Lapis IndonesiaGroup in increasing its contribution to the Indonesian Economic Growth by adding more and more value-added products to our range of exports.

At the same time the Kayu lapis Indonesia Group realize that its responsibility to Indonesia goes beyond simply providing foreign exchange. We see ourselves as being responsible to develop the rural and remote areas of our country by providing jobs, technology, education, and better living conditions. Added to this, we see the absolute necessity and wisdom of safeguarding Indonesia's treasured forests. To this end the Kayu lapis Indonesia Group is committed to follow the guidelines and regulations provided by the Indonesian Government.

KAYU LAPIS INDONESIA GROUP LOGGING OPERATIONS

The successful management of the forest concession requires accurate and up-to-date forestry data. The Kayu lapis Indonesia Group is the first private wood products company to utilize a computerized remote sensing apparatus, using data sources from digital images taken by satellites such as the France's SPOT and USA's Landsat. The above system is to ensure that forest planning is done properly.

The Kayu Lapis Indonesia Group logging operations are committed to excellent forest management and consistent replanting efforts. They are not only to protect Indonesia's natural resources, but also sound and well managed forests will guarantee a continuous supply to its own timber industry.

The main source of raw material we are planting are Acacia and Gumelina. These trees grow fast and able to harvest only about 2 - 4 years. We aim to cultivate these saplings constantly and bring profit for the people, who live in unindustrialized area. We are calling this "Argicultural Forestry". These trees afforested are chip for particleboard manufacturing, so it is not necessary to be straight and large (the diameter is about 15-30 cm). Also, we can use branches, stumps, and roots as raw material for particleboard

Most of the wooden dust collected from the process of manufacturing, are use for composts. It is more effective to increase the growth of trees. We think our action belongs to argiculture, and for this reason we call this "Agriculture Forestry".

On June 2002, PT. RPI, one of the Group's sister company, constructed a nursery center at Boja, 25km from the factory and started to produce sampling. An area has 4.5 ha and able to produce 1 million samplings. Since November 2002, we started to afforest samplings at neighbor's garden, beside the road, on the company premises by free. We already afforest 841 thousands sampling until April 2005.

PT. RPI constantly does forestation, therefore raw material supplies increase every year. Also this action can help local people in economic side. PT. RPI as a foreign capital company wants to improve local people prosperity by this action.