Paiton Energy Conducts Social Innovation to Support Social Forestry Enterprises

Jakarta, September 18, 2023 - To support climate management as well as community empowerment in the Social Forestry Enterprises Group (KUPS), PT Paiton Energy signed a Memorandum of Understanding (MoU) on Social and Environmental Innovation on the Social Forestry Program with the Directorate General of Social Forestry and Environmental Partnership, the Ministry of Environment and Forestry (KLHK).

The signing was done by Dr. Ir. Bambang Suprianto, M.Sc., Director General of Social Forestry and Environmental Partnership, Ministry of Environment and Forestry (KLHK), and Koichiro Miyazaki, President Director Paiton Energy at the opening ceremony of the LIKE (Environment, Climate, Forestry and New Renewable Energy) Festival, Road to COP 28 UAE, held at Indonesia Arena on September 16-18, 2023. The MoU signing ceremony was also witnessed by the Minister of State Secretary, Minister of Environment and Forestry, and Minister of Cooperatives and Small and Medium Enterprises.

This is a historic step in supporting the development of the social forestry program, as well as actively participating in responding to climate change in Indonesia.

Dr. Ir. Bambang Suprianto, M.Sc., Director General of Social Forestry and Environmental Partnership, stated that this signing is one of the President's Program to encourage Social Forestry as a form of equalizing economic access opportunities in Indonesia.

President Director of PT Paiton Energy Koichiro Miyazaki appreciates this collaboration and hopes that Paiton Energy's contribution can have a positive impact on efforts to protect forests and encourage the economic development of local communities.

"Through this collaboration, Paiton Energy seeks to make a significant contribution to the development of social forestry enterprises in Indonesia in order to support community welfare, and maintain environmental conservation, for sustainable development," Miyazaki said.

As one of the three pillars of economic equality policy, social forestry has an important role in reducing land tenure inequality, poverty and unemployment.

Social forestry is a sustainable forest management system that involves local communities or customary law communities as the main actors to improve welfare, maintain environmental balance, and maintain socio-cultural dynamics.

As of September 2023, the social forestry program has covered an area of 6,371,774 hectares, with the establishment of 10,086 KUPS.

The program has a significant economic impact, with the National Economic Value reaching IDR 574,522,430,453. Of this amount, KUPS is classified into four levels, namely Blue, Silver, Gold, and Platinum, reflecting the diverse conditions of KUPS in Social Forestry.

Director of Environmental Partnership, Directorate General of Social Forestry and Environmental Partnership, Dra. Jo Kumala Dewi M.Sc. said that the Social Forestry Partnership encourages the active role of parties, including companies, in the protection and management of the environment and forestry.  This is done through institutional strengthening activities, area management, and social forestry business development. This cooperation will improve environmental quality dan develop a sustainable economy for the Social Forestry Group.

Chief Financial Officer of PT Paiton Energy, Bayu Widyanto said that the cooperation with KUPS is one of the Paiton bErsiNERGY programs and is one of the company's concrete steps in supporting climate change adaptation and mitigation through the forestry and land use sectors which are an important part of this program.  On the other hand, this partnership not only benefits the Social Forestry Business Group but also supports the company's efforts to build the Biomass ecosystem.

In the initial stage, Paiton Energy will establish strong cooperation with two KUPS, namely KUPS Ranu Makmur, and KUPS Alam Subur, both located in Probolinggo District, East Java. This cooperation involves a total of 750 hectares of social forestry land.

The cooperation with KUPS will focus on several key initiatives, namely supporting the development of Social Forestry group partnerships, institutional and entrepreneurial capacity building as well as the development of Energy Plantation Forest (forest-based bioenergy development program).

Paiton Energy will continue to enhance its positive environmental impact through sustainable business practices and continuous environmental performance improvement initiatives. The Company synergizes its climate change management activities through the Paiton bErsiNERGY Program.
Paiton Energy has implemented its CSR program since 2000 which was designed annually and monitored by the Community Development Committee. The programs are categorized into three focuses, namely supporting the sustainability of Companies (power plant), socio-economic sustainability, and energy and environmental sustainability.



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