New Forests invests in Indonesia rubber plantation

The New Forests Tropical Asia Forest Fund - which reached a final close of $170 million in 2013 - will take a 35% interest in Hutain Ketapang Industri, manager of a 100,150-hectare forestry concession in West Kalimantan province. The capital will be used to expand the rubber plantation from 9,000 hectares to more than 30,000 hectares. Additional conservation management areas will also be introduced.

"This investment is among the first institutional investments in large-scale, sustainable forestry in Indonesia," said David Brand, CEO of New Forests, in a statement. "We are excited to be part of the shift in Indonesia's forest sector toward more productive and responsible operations."

Sampoerna Agro is one of the leading producers of palm oil and palm kernel in Indonesia. As of year-end 2014, it managed 127,787 hectares of oil palm plantations in South Sumatra province and Central and West Kalimantan provinces. It moved into the rubber plantation space in 2012, acquiring plantations covering 100,000 hectares.

Founded in 2005, New Forests invests in sustainable real assets, such as forestry, timber processing and infrastructure, land management, and conservation, in Asia Pacific and the US. It has more than A$2.75 billion in assets under management. The Tropical Asia Forest Fund focuses on opportunities in Southeast Asia.

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• Topics
• Infrastructure
• Industrials
• Southeast Asia
• Expansion
• Agriculture
• Infrastructure
• Southeast Asia
• Indonesia