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Wednesday, March 27, 2013

Rimbunan Hijau’s Financial & Economic Contribution to PNG

Presentation of Hospital cupboard to the Port Moresby General Hospital Children's Ward. Since the company’s entry into Papua New Guinea in 1989, it has significantly participated and contributed to the economic and social development of the nation. As a market leader in the forest industry it has diversified into media, travel, IT property development, retail and other business interests. Since then and from 1993 up to 2006 it is one of the major contributors to the financial and economic well being of Papua New Guinea. The landowners, the government and most importantly employees were the major beneficiaries of Rimbunan Hijau presence in the nation since then. The above benefited from royalties, premiums, levies, export duties, corporate tax, salary, wages, infrastructure contributions and National Superannua tion Fund (Nasfund) payments totaling K1.19 billion. Since its establishment, the total capital expenditures for forestry are K 300 million, K120 million for wood processing, K35 million for transport, K30 million for property development and K15 million for other services and in all a total capital investments in the country from 1993 up to 2006 was K 500 million. Rimbunan Hijau has been a significant contributor to wages to the economy and it has contributed more than K160 million. In 2006 alone a total of 22.5 million was paid. Since 1991, there has been a steady increase in line with increased capital investment. Through premiums, levies, export duties on logs RH makes direct tax contributions to the economy of the country. Since 1993, the companies premiums and levies contribution was K 157.3 million and its total export duty was K 624 million and the total corporate tax amounted to K 31.3 million. In 2006 the Group’s tax contribution was more than K 85 million with K 56 million in export duty, K 21.5 million in contributions and levies and K 7.5 million in group taxes. Royalty payment by Rimbunan Hijau to landowners since 1993 calculated at K 10 per cubic metres is K 122.7 million. The company has spent more than K 27 million on infrastructure which includes schools, health centres, churches and other social infrastructure excluding roads in its area of operations. It constructed more than 130 health centres, aid posts, schools and churches The absence of government social services and basic infrastructure in rural and remote areas increases the importance of the services and infrastructure the company provides. It has constructed roads, and built culverts, airstrips, bridges, jetties and even provided water tanks, school building and supplies and others like markets, grand stands, churches and sporting facilities. The Group employs 5, 300 people through out its various businesses mostly in the forest sector and downstream processing. In 2006 total wages paid was more than K22.5 million, an average of K4245 per annum. The company also implement training programs to its staff like “on the job” approach. In addition to its contributions to the economic well being of Papua New Guinea, it also donates to charity groups, schools, community and landowner groups, hospitals and others. It has supported the Operation Open Heart over the years and now a platinum sponsor of BAHA (Business Coalition against HIV/AIDS). In has contributed more than K 600,000 while other times like machinery, livestock and equipments were also donated by the company. All in all, Rimbunan Hijau has a long term business commitment and plan that go beyond forestry.

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