To prevent and reduce natural disasters, which is the mission of the non-life insurance business, and to improve the problem of tropical forest reduction, which is a global problem in terms of environmental conservation, since 2005, in collaboration with the Indonesian government, we have conducted a project aimed at regenerating tropical forests (Paliyan Wildlife Conservation Forest, Java Island). The Phase Ⅲ project was completed at the end of March 2021, and the Phase Ⅳ project is currently underway. We are now proceeding "regeneration of forests and formation of sustainable local communities" by revitalizing the local economy through providing livelihood improvement support such as distributing seedlings to local residents and tree planting and forestry guidance and through providing environmental education to elementary school teachers and students etc. As a result of our activities in September 2020 we received the Nature Conservation Award under category of the Business Entity Element from Indonesian Government.

Outline of "Tropical Rainforest Recovery Project"

Project name Yogyakarta Special Province Wildlife Reserve Restoration and Recovery
Objectives
  1. Restoration and recovery of degraded wildlife reserve
  2. Development of rainforest using Javanese native tree species
  3. Contribution to long-term local economy via agricultural capacity building and fruit supply
  4. Enlightenment of the importance of forest throuh conducting environmental education

As a result of the above actions, we aim to regenerate the forest and build the sustainable community

Number of planted trees Approx. 300,000 of native species, useful trees and fruit trees within Java
Location 350 hectares of "Paliyan Wildlife Reserve" in Yogyakarta Special Province, Java
Features of Phase Ⅰ:
from April 2005 to March 2011

The first collaboration between Ministry of Environment and Forestry of Indonesia and Japanese private enterprise to conduct reforestation

  • Bolstering local economy using "agroforestry method" (*1), replanting mainly native species, restoring both animal and plant species in natural way and planting fruit trees and agricultural goods
  • Survey on the restoration of forest and ecosystem by Gajah Mada University in collaboration with us
  • Environmental education to elementary school students conducted in collaboration with Gajah Mada University for the purpose of preventing them from continual illegal cutting
  • MSIG Indonesia's donating educational tools such as projectors, musical instruments and fixtures to several elementary schools in Paliyan and Saptosari, Yogyakart
  • Contributing to global warming prevention by absorbing 70,000 tons of CO2 over 20 years from 2005(*2)
  • *1 Agroforestry method: method combining agricultural crop growth and forestation to gain short-term benefit while waiting for the trees to grow
  • *2 absorbed amount actually measured for 14 years since 2005FY to 2019FY was approx. 31,700 tons of CO2
Features of Phase Ⅱ:
from April 2011 to March 2016

Promotion of the creation of a mechanism to permanently preserve the recovered wildlife sanctuary

  • Conducting biodiversity monitoring surveys in collaboration with Gajah Mada University using birds and insects as indicator to investigate the ecosystem recovery situation of the forest back into its original condition
  • Providing local residents with self-support programs through agricultural technology guidance
  • Conducting environmental educational programs for the teachers working in local elementary schools to increase the knowledge and awareness of observing the forest and deliver all the knowledge to their students in daily learning activity
  • Implementing conference with the stakeholder such as local farmers and local administrative organization concerning the utilization and preservation of the protected forest
Features of Phase Ⅲ:
from April 2016 To March 2021

Additional activities besides the preservation of Paliyan wildlife sanctuary and the environmental education

  • Distributing nursery-tree to local residents and providing training in planting and tending method to contribute to the enhancement of local residents' income and to prevent them from continual illegal cutting
  • Operation and maintenance of the Seminar house which is a base for the activities in this project
  • Support for operating of Forum (which is an organization to be administered a protected forest by BKSDA) and its monitoring
  • Environmental education to elementary school teachers conducted in collaboration with Gajah Mada University
Features of Phase Ⅳ:
from April 2021 To March 2024

Additional following activities besides the preservation of Paliyan wildlife sanctuary

  • in order to improve the livelihoods of residents around the protected forest, support for promoting the independence of agricultural cooperative and implementation of community-based tree planting in the surrounding area
  • Multi-faceted utilization of Paliyan wildlife conservation forest, such as acceptance of inspection teams from outside
  • Operation and maintenance of the Seminar house which is a base for the activities in this project
  • Support for operating of Forum (which is an organization to be administered a protected forest by BKSDA) and its monitoring
  • Environmental education to elementary school teachers etc. conducted in collaboration with University of Gajah Mada
  • sapling production for community - based tree planting
  • environmental education by Gajah Mada University
  • Visit of Yogyakarta Special Province Agricultural Personnel

KPI of Indonesia Reforestation Project

Activities KPI Achievements
Reforestation Planting trees in 350 hectares of wasteland number of planted trees 400,000 trees in total
(100,000 replanting included)
estimation of absorbed CO2 Approx.31,700 tons of CO2 in 14years since 2005FY to 2019FY
Contribution to the local economy total number of local employees 15,000 people employed for planting
Recovery of biodiversity Biodiversity monitoring on birds and insects as indicators number of species
  • birds : 21 species⇒44 species
  • butterflies : 4 species⇒13 species
  • ants : 6 species⇒8 species
diversity index

increase in Shannon-Wiener's H':

  • birds : 2.39⇒4.01
  • butterflies : 1.93⇒2.64
  • ants : 0.976⇒2.34
similarity of birds composition against model forest (Wanagama Educational Forest) increased from 17% to 58% in Bray-Curtis index
Environmental education Environmental education for elementary school teachers and students number of schools/number of participants 1 school /20 students (2012FY)
1 school /20 students (2013FY)
1 school /20 students (2014FY)
2 schools /40 students (2015FY)
2 schools /40 students (2016FY)
2 schools /40 students (2017FY)
2 schools /40 students (2018FY)
Environmental education for teachers and students of elementary and junior high school (2019FY) number of schools/number of participants 2 schools /277 participants (2019FY)
Environmental education for teachers and students' parents (2020FY) number of schools /number of participants 1 school /40 participants (2020FY)
Exchange program between participants of reforestation project tour from Japan and local schools number of participants from Japan 136 people (since 2014FY to 2019FY), due to COVID-19 the exchange program was not held in 2020FY
Livelihood improvement Instruction of agricultural techniques (for growing red peppers, marketing ability, etc.) The participants of this program established a following cooperative association number of farmers who participated in this program 40 people (2015FY)
number of farmers in the agricultural cooperative association 38 people (2020FY)
Establishment of the agricultural cooperation and independence support sales of the agricultural cooperative association 36,701,160Rp (since 2014FY to 2016FY)
24,504,312Rp (since 2017FY to 2018FY)
27,079,365Rp (since 2019FY to 2020FY)
Plantation program in corporation with local residents number of distributed trees / number of trained local households of planting methods 43,737 trees / 80groups (2017FY)
49,814 trees / 106 households (FY2018)
44,725 trees / 112 households (FY2019)
35,275 trees / 152 households (FY2020)

Indonesia Reforestation Project Video (subtitled in English)

Reforestation Project PhaseⅡ- Completion ceremony

On October 3, 2016, reforestation project phase Ⅱ-completion ceremony was held at the office building of special province of Yogjakarta.
This ceremony was attended by many key persons including;
-Sri Sultan Hamengku Buwono Ⅹ, Governor of special province of Yogjakarta,
-Mr.Firdaus, Member of the Board of Commissioners Indonesia Financial Services Authority and Chief Executive Supervisor of NBFI,
-A member from Embassy of Japan in Indonesia,
-Representative of local farmers in the Paliyan area and so on.

The number of participants was more than 100 in this ceremony. Mr.Firdaus, Member of the Board Commissioners FSA and Sri Sultan Hamengku Buwono Ⅹ, Governor, complimented MSI Co., Ltd. and PT Asuransi MSIG Indonesia on this successful project. Mr.Kuroda, Director, Senior Executive Officer of MSI Co., Ltd., received a Letter of Appreciation from the governor.
This project is a representative CSR activity that MSI Co., Ltd. has been continuing in cooperation with PT Asuransi MSIG Indonesia, an Indonesian local company.
It is highly reputed as a successful example of CSR activity that is performed by Japanese Corporation in Indonesia due to the steady contribution to the local community through not only planting trees but also providing agricultural technology guidances for local residents, conducting environmental education for surrounding elementary schools and PT Asuransi MSIG Indonesia's making donations continuously.

This topic was taken up by many forms of local media. In consequence that brought good reputation to both MSI Co., Ltd. and PT Asuransi MSIG Indonesia.

Progress of Reforestation project

  • The forest in October 2005 (before the project began)
  • The forest in March 2022

Paliyan Wildlife Reserve Tree Plantation Location

Map of Forestation Areas

Message to Mitsui Sumitomo Insurance Co., Ltd

Sir Wisnu Prastowo (Head of Forestry Department Indonesia Embassy)

This rainforest recovery project is of significant importance to Indonesia. Previously, Java had abundant protected forests that were of high quality. However, much of it was lost to illegal harvesting. Indonesian government prioritizes forestry restoration as part of national policy, making this project a very promising one.
With plantation of not just native species but of fruit trees being put in action, local residents also expect a boost in local economy.
We thank everyone at Mitsui Sumitomo Insurance Co., Ltd for supporting us.