We are seeking ethical and socially responsible investors to invest in a community based sustainable forestry project which will enable conservation, community welfare and cultural preservation.
Land that has long ago been deforested as a result of ancient shifting agriculture methods and overtaken by very difficult to manage dominant Alang-alang grasses, will be rehabilitated through reforestation activities, starting with a local native colonising species and move to mixed native species forests of broad biodiversity.
With benefits shared with the local community this will be a beacon project for the region, for economical and incentive driven sustainable forestry, that will create significant improvements to rural livelihood. The project is scalable and with scaling up from its current stage there will be lower costs per hectare upon expansion.
The establishment of plantations, on hitherto predominantly unusable grassland areas, with high quality timber for the Indonesian domestic market. Further developing agricultural projects and conservation forests on reclaimed, rehabilitated grasslands.
The Overhead expenses for the project are calculated to be 6.96%. Investment IRR, before taxes, is conservatively estimated at 12% but realistically could run to 19% or higher. 10% of profits from plantation harvests will be shared with the traditional land owners. Under the current Indonesian taxation system there is a 12.5% Withholding tax, and Company profits tax of 20%.
Some returns from timber will begin in the twelfth year of the project and further annual returns can be available to investors from agricultural products established within areas of the plantations.