The Head of the LPHD of the Karangan Dalam Village and the Director of PT Bima Agri Sawit (BAS, a subsidiary of DSNG) sign the Memorandum of Understanding for the Off-Concession Conservation Area Program. Photo: USAID SEGAR

Balikpapan– Palm oil and wood plantation company, PT Dharma Satya Nusantara Tbk (DSN Group), through its subsidiary, PT Bima Agri Sawit (BAS) partners with the Village Forest Management Unit (Lembaga Pengelola Hutan Desa- LPHD) Karangan Dalam Village, Karangan Subdistrict, East Kutai District, East Kalimantan to implement an Off-Concession Conservation Area (OCCA) program.

The signing of the partnership agreement took place on Wednesday, December 14, 2022, in Balikpapan and was carried out by Agus Setiabudi, Director of BAS, and M. Effendi, the Chairman of LPHD Karangan Dalam. The signing was witnessed by the Bupati of East Kutai, Drs H. Ardiansyah Sulaiman M.Si; Head of the East Kalimantan Forestry Agency, H. Joko Istanto, S.P. M.Si; Ridwan as the Head of Karangan Dalam Village; Amin Budiarjo from USAID Indonesia; and Peter Doyle as the Chief of Party of USAID Sustainable Environmental Governance Across Regions (SEGAR).

Through the partnership, both sides will jointly protect and restore an area of 3,148 hectares of the Karangan Dalam Village Forest. The partnership aims to maintain and preserve the function and benefits of forest areas. Furthermore, DSN Group believes that this program has the potential to enhance the livelihoods of local villagers through comprehensive planning, protection, and utilization of sustainable forests.

Director of BAS, Agus Setiabudi, said the OCCA program manifests DSN Group's commitment to conducting sustainable palm oil practices. Through the OCCA program, DSN Group seeks to encourage independent smallholders to participate in conserving the natural environment around their plantations to further boost the No Deforestation, Peat, and Exploitation (NDPE) implementation in the palm oil supply chain. Currently, Karangan Dalam Village is one of the largest fresh fruit bunches (FFB) suppliers to the BAS Palm Oil Mill (POM).

"This partnership is also a concrete step in realizing DSN Group's commitment to protecting the natural environment, overcoming the effects of climate change, and respecting the rights of communities in and around our operational areas," said Agus Setiabudi after signing the cooperation agreement.

Bupati of East Kutai, Drs. H. Ardiansyah Sulaiman M.Si, expressed his appreciation for all parties involved in this cooperation effort. "It is crucial that we recognize the importance of responsible resource management for the betterment of humanity. That is why we must come together and take proactive measures to protect, restore, and rejuvenate the environment, so that we may optimize the use of sustainable natural resources for the benefit of all. By collaborating and working towards this common goal, we can create a brighter, more sustainable future for our communities," he explained.

Head of the East Kalimantan Forestry Agency, H. Joko Istanto, S.P. M.Si, explained that East Kalimantan has forest potential of 8.3 million hectares or around 60 percent of the province's territory. Given the vast potential for positive impact, it is imperative that the government remains determined in its commitment to the sustainability of these invaluable forests, which have long provided countless benefits to the community and will continue to do so for generations to come.

USAID SEGAR has been working with DSN Group in planning and monitoring the management of the OCCA program since June 2022. In implementing this program, BAS will be assisted by USAID SEGAR, especially in collecting baseline data on the community's socio-economic and natural environment conditions, increasing the capacity of LPHD, as well as regular joint monitoring and evaluation on a six-monthly basis. (*)