The Project Background

Ladang Hutan Ulu Sedili

Ladang Hutan Ulu Sedili (LHUS) is a Permanent Forest Reserve which covers a total area of 35,226 hectares. It is approximately 80 km north east of Johor Bahru, stretching a 55 km distance off Kota Tinggi-Jemaluang trunk road. LHUS is classified as an Acacia forest plantation whereby the Acacia trees have been planted by the Johor State Government through the Forestry Department since late 1982. Pine trees were also planted but in a small scale at the Southern region of LHUS.

In 1999, the State Government has consented for YPJH to form a joint-venture with PLS under the Privatisation Agreement to develop, manage and maintain LHUS in a sustainable manner for a concession period of 60 years. As a result, Aramijaya has gained the entrance to LHUS in December 2002.

Pursuant to the Privatisation Agreement, Aramijaya’s obligations are to take over the Asian Development Bank (ADB) loan and to provide profit guarantee to YPJH for the State Education Fund. In order to ease the Company’s cash flow, two (2) pieces of agricultural lands were alienated to Aramijaya for planting of oil palm under the Agreement.

Ladang Hutan Terosot

In 2007, the Johor State Government approved a total area of 28,494 hectares of State land to be earmarked for development of timber latex clone (TLC) plantations, which is known as Project Ladang Hutan Terosot. The initiative to cultivate rubber plantation is driven by the State Government’s move to expand forest plantation industry especially for the TLC to ensure sufficient supply of rubber timber for Malaysian furniture industry in the near future.

Project Ladang Hutan Terosot is divided into three (3) zones, namely Zon Johor Utara & Tengah, Zon Johor Timur and Zon Johor Selatan, which are to be developed by three States incorporated bodies.

The project lands in Zon Johor Selatan have been identified and allocated to YPJH, which is comprised of five (5) individual plots that are located within Mersing and Kota Tinggi district, covering a total area of approximately 12,340 hectares. Aramijaya was then appointed as the project proponent for this project which will develop, manage and maintain either TLC and Acacia plantation in these land areas. The concession period is 30 years, starting 2010.

Although the total area allocated for TLC plantation was 12,340 hectares, the majority of the land had been gazetted as water catchment, conservation area or agricultural land. After land survey, it was found that less than half of the allocated area can be regarded as plantable areas for the TLC plantation. To conclude, Aramijaya has a grand total of about 40,000 hectares plantable landbank to date.

The map showed the location of Ladang Hutan Ulu Sedili and Ladang Hutan Terosot