Probolinggo - PT Kutai Timber Indonesia's journey began in 1970, when Indonesia was opening up to foreign investment to develop its natural resources. Established through a joint venture between Fa. Kaltimex Jaya and Sumitomo Forestry Co., Ltd., KTI began its operations with a focus on managing a 50,000 ha natural forest concession in East Kalimantan.
In its first decade, KTI successfully built a reputation as an exporter of high-quality timber. However, in line with government policies to increase the added value of forest products, KTI adapted quickly. 1973 was an important turning point when the company decided to build a plywood processing plant in Probolinggo, East Java.
Entering the 1980s and 1990s, KTI continued to expand its operations. Not only did the company increase its plywood production capacity, it also diversified its products. 1992 became a milestone with the establishment of the woodworking division, followed by the construction of the particle board factory in 2008.
“Surviving for 50 years is not something easy; for that, we have to work hard to adjust to the circumstances and market needs,” said Mr. Mohamad Zubair as Executive Officer of PT KTI.
Commitment to innovation and sustainability is key to PT KTI's success. The company not only focuses on production efficiency but is also active in responsible forest management practices. Tangible evidence of this commitment is the planting of several types of pine trees at KTI's former HPH site in Sebulu, which can still be seen today.
KTI's journey has not always been smooth. The Asian economic crisis in the late 1990s and global market fluctuations posed major challenges. However, with adaptive strategies and operational efficiency, KTI managed to get through these difficult times.
Today, at the age of 54, PT Kutai Timber Indonesia stands tall as an example of the success of the national timber industry. With integrated modern production facilities, including plywood, particle board, and woodworking factories, KTI continues to be a leader in the industry.
Going forward, KTI is committed to continuous innovation with a focus on environmentally friendly products, energy efficiency, and the development of alternative raw materials. As stated in the company's code of conduct, KTI is committed to “being perfect and sustainable," continuing to contribute to the realization of a prosperous and sustainable society through the use of wood that is safe and friendly for humans and the environment.