Batu, March 2, 2023 – Following the successful completion of the first phase of revegetation covering an area of 567 hectares in the conservation area on the slopes of Mount Arjuno, PT United Tractors Tbk (UT) is continuing its commitment to restoring forest conservation areas by signing a new Memorandum of Understanding (MoU) with Perum Perhutani on Wednesday (02/03), in Batu City, Malang, East Java. This MoU will regulate the expansion of cooperation between UT and Perhutani to cover a wider area.
Under this expanded cooperation, UT is targeting revegetating a former forest utilization area of 10,000 hectares. The revegetation program is an effort to repair and restore vegetation through planting and maintenance in forest areas that have previously been converted to other uses.
UT Director, Edhie Sarwono, explained that the revegetation efforts carried out by UT are the company’s sustainability initiative in the environmental field through the UTREES (United Tractors for Nature and Environment Sustainability) program. The program is a real commitment from UT to provide a positive impact on the environment through the aspects of sustainable business and ESG (Environmental, Social, & Governance) principles.
“UT is completely aware of the importance of forests in mitigating the impact of larger natural disasters. For example, the revegetation that UT has carried out on the slopes of Mount Arjuno is an effort to prevent flash floods and landslides, such as those that occurred in Batu City, Malang in 2021,” said Edhie Sarwono.
Based on data from the Ministry of Environment and Forestry (KLHK) in 2021, the forest area on the island of Java is only around 24%. Of the total forest area, the forest cover only reaches 19%[1]. The shrinking forest area in Java due to conversion to settlements and agricultural land has led to crises such as floods and landslides.
The condition is the basis for UT to expand the forest revegetation area. From a total forest revegetation target of 10,000 hectares, UT has restored 567 hectares of forest land on the slopes of Mount Arjuno. This revegetation is part of the first cooperation between UT and Perum Perhutani since 2022.
Director of PP Perum Perhutani, Endung, emphasized that in managing Perhutani forests, he refers to three main aspects, namely the environment, social, and economic. The forest revegetation and community development programs carried out by UT are good examples of a company’s social and environmental responsibility to the state and community.
“I hope that the cooperation with UT can continue to increase and expand so that more forest areas can be restored. In the future, these activities will certainly provide benefits for the environment and the wider community,” said Endung.
In addition to signing a cooperation agreement, UT also introduced the Desa UniTy concept to the community around the Mount Arjuno forest slope revegetation area. The Desa UniTy concept is a company’s step to provide added value in terms of economy, health, and social for local residents.
The implementation of this village concept is one of the solutions that UT offers to residents around Mount Arjuno to be able to utilize the forest revegetation area as a source of livelihood. UT uses fruit trees that can be utilized to provide economic value.
Developing the Economy of Village Communities through Desa UniTy
One of the causes of forest conversion is its use as agricultural land and also plantations. Seeing these conditions, United Tractors has made the Desa UniTy program a concrete step in maintaining social, health, economic, and environmental values in the community. Desa UniTy is a village empowerment program through the 5 Pillars of UT CSR (Education, Health, Environment, Entrepreneurship, and Disaster Management) by prioritizing community-based potential. The Desa UniTy in the Mount Arjuno slope area focuses on increasing the community economy through the development of tourism villages.
The village community empowerment program has been running since 2022. Through this program, UT has helped provide street lighting to prevent accidents and lighting for community economic centers, created the Arjuna UMKM Group consisting of 15 fostered SMEs, provided digitalization of health facilities at posyandu and posbindu, and provided 100 trash bins to maintain the cleanliness of the environment.
Desa UniTy is also present in the Mount Arjuno forest slope area with a total of 819 village residents who receive benefits from the villages of Sumbergondo, Tulengrejo, and Tawangargo. Several main programs provided to the surrounding residents include training on pest and disease control, SME development, health education, and check-ups, and other support programs.
Looking ahead, UT has prepared the Desa Unity program, which will provide comprehensive and sustainable benefits to the community. Additionally, community members would also be involved in forest revegetation efforts, including enhancing the environment to generate economic value.
These social and environmental empowerment initiatives are created by the community which the company supports wholeheartedly to make a brighter future of welfare in Indonesia with government assistance. The company’s commitment to social and environmental responsibility aligns with its 10 sustainability aspirations, which serve as guiding principles for its business operations.
United Tractors’ Overview
PT United Tractors Tbk (UT) is Indonesia’s largest heavy equipment distributor, established in 1972. The Company operates in five business areas: Construction Machinery, Mining Contracting, Mining, Construction Industry, and Energy. Additionally, UT is committed to promoting sustainability and achieving Sustainable Development Goals (SDGs).
ESG United Tractors
As a world-class heavy equipment, mining, and energy company, UT has been operating in Indonesia for over 50 years. The company is committed to creating a sustainable future for Indonesia by effectively applying ESG principles. UT aims to pay attention to the environment, positively impact society, and uphold good corporate governance at all levels of its business operations. The company also strives to optimize its competencies, expertise, and strategic assets to bring added value to all stakeholders and the Indonesian people.
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For more information, please contact: Sara K. Loebis Head of Corporate Governance and Sustainability Division PT United Tractors Tbk Email : ir@unitedtractors.com and corcom@unitedtractors.com Address: Jl. Raya Bekasi Km.22 Cakung, Jakarta Timur 13910 Telp. : (62-21) 3511961, Fax : (62-21) 3441413 Medsos : IG (@unitedtractorsofficial & @ceritadi.unitedtractors) Website: www.unitedtractors.com LinkedIn: PT United Tractors Tbk |