PT Musi Hutan Persada (MHP) founded in March 1990, was a Joint Venture Company between PT Inhutani V (a State Owned Forestry Enterprise) and Marubeni Corporation of Japan concentrating on the development of industrial forest plantation. Since March 2015, MHP has become 100% or wholly owned subsidiary of Marubeni Corporation.
MHP was granted a forest concession area (HPHTI or IUPHHK-HT) by the Ministry of Forestry based on Forestry Ministerial decree No: 038/Kpts-II/1996 dated January 29, 1996 with a total forest land area of 296,400 hectares in South Sumatra.
The main objective of the plantation development in MHP is to supply wood raw material for pulp production sustainably to the pulp mill of PT Tanjung Enim Lestari Pulp and Paper, while at the same time it is intended to rehabilitate degraded alang-alang (Imperata) grassland into productive land and to provide opportunities for the local community through job creation and income generation.
In the beginning Acacia mangium was selected as the main tree species for planting due to its rapid growth, adapted to marginal soil which is acid and low in available nutrient, silviculturally easy to handle and produces high quality pulp. Due to unprecedented pest and disease outbreaks Acacia mangium is currently not a viable species to grow and has been replaced with Eucalyptus pellita which is more tolerant to pest and disease and produces pulp having qualities comparable to those of Acacia mangium.
As a Tree Growing Company MHP strives its best to manage sustainable forest plantation and to provide good quality wood for pulp production. In establishing the plantations MHP always applies the best silvicultural practices to promote environmental and soil conservation through continuous innovation research and development. As a local economic generating agent MHP always encourages the local communities to be involved in plantation development through partnership and other local development programs..
MHP strives the challenge of new possibilities to pursue efficiency in every production phase by improving its human resources capacity. The company also reinforces discipline and internal control as well as pursuing comprehensive strength across divisional functions; MHP has engaged in community development in partnership with the local communities.