Indonesia and France are partnering with each other to develop sustainable natural rubber across plantations in Indonesia through joint social and environmental studies.
The US$270,000 partnership agreement was signed by French Development Agency (AFD) and Royal Lestari Utama (RLU), an Indonesian-based sustainable natural rubber company, during French President François Hollande’s state visit to Jakarta.
Established in 2015, RLU is a joint venture between the Indonesian Barito Pacific Group and Michelin, a French tyre manufacturer. The company was initially formed to develop sustainable and integrated natural rubber plantations and processing facilities in Jambi, East Sumatra, and in East Kalimantan.
“As a rubber producer, we are committed to continuously implement sustainable rubber management, as well as address challenges in social and environmental aspects of rubber development,” RLU president Andry Setiawan said in a statement.
Andry emphasised that striking a fair balance between economy and ecology is necessary to preserve ecosystems and to help communities rise out of poverty.He also believes that the partnership will reinforce policies to promote sustainable rubber management and support social inclusion, while increasing local resilience against environmental impacts of climate change.
RLU hopes to utilise its strategic location near the Bukit Tigapuluh National Park in East Sumatra as a “barrier” to protect forests vulnerable to illegal logging and deforestation.
The partnership is co-financed under an initiative spearheaded by AFD and the UK’s Department for International Development that aims to promote a low carbon footprint for environmental projects in Indonesia.
“We expect the partnership to help RLU in its efforts to strengthen environmental and social management by providing the company with a detailed, external evaluation of key risks and opportunities, as well as strategic and operational recommendations,” AFD Asia department director Pascal Pacaut said in the statement.
The AFD-RLU partnership is one of many recently signed by both countries as part of Hollande’s state visit, which is expected to bring US$2.6 billion of diverse investments to Indonesia.