Arrow Resources Development Inc. provides corporate operating structure, financial operations, sales and marketing activities and the financial administrative infrastructure for the commercial development of land and natural resources in Indonesia.  The land to be developed has been categorized as environmentally "critical land" by the Indonesian government due to deforestation by local farmers and predatory logging companies over time. The primary mandate of all Arrows activities are centered on the environmental restoration of these critical lands, the creation of a sustainable agricultural infrastructure designed to create large-scale employment for the native farmers and the development of energy resources. Arrow Resources understands that any large-scale development operation faces environmental and wildlife conservation concerns. 

Arrow and their joint ventures partners undertake every project in a manner that is sensitive to the environmental and the local social structure to blend economic growth with socially conscious development. All current and future operations utilize the existing natural resources in a sustainable, renewable and responsible manner. All agricultural activities utilize only organic fertilizers and low impact (local hand labor) and are production facilities utilize only renewable energy sources and consume no fossil fuels.

In 2005, the Company formed a joint venture relationship with Arrow Pacific Resources Group Limited, (collectively the “Group”) a British Virgin Islands registered company.  Arrow Pacific was founded by Hans Karundeng, an Indonesian industrialist and financier and the principal stockholder of Arrow Resources.  This relationship with Arrow Pacific is for the development of large scale plantation/farming and natural resource operations in Indonesia.

In 2007 the Group formed a national partnership with PT Wika Realty and PT Mitrasarana Infrakomindo.  PT Wika Realty (www.wika.co.id/eng/) is a fully integrated land and infrastructure builder/developer recently listed in the Jakarta Stock Exchange (JSX).

PT Mitrasarana Infrakomindo is a highly respected military pension manager which has recently entered into the business of sales and distribution of fuel products and as a manufacturer of renewable energy sources. This team of local companies along with Arrow are developing these projects together.

The Company has just completed a refocused business model to be consistent with recent changes in World Bank forestry regulations and in compliance with recently adopted forestry regulations in Indonesia.  The completion of these long anticipated developments now allow the Company to move ahead immediately with the development of its first plantation. The Group has been offered and accepted land from several Governors and by Bupati’s (Regent Government Officer in Charge of a Regency) in the following areas;

• Konawe, South East Sulawesi 70,000 Ha
• Konawe, South East Sulawesi 96,000 Ha
• Kolaka, South East Sulawesi 200,000 Ha
• Bombana, South East Sulawesi 120,000 Ha
• Melawi, Kalimantan 300,000 Ha
• Sintang, Kalimantan 300,000 Ha
• Donggala, Central Sulawesi 300,000 Ha
• Governor of North Sulawesi 500,000 to 750,000 Ha
• Governor of Maluku  300,000 Ha
• Governor of Irian – Adat 800,000 Ha

These critical lands total approximate: 2,986,000 Ha. The initial 70,000 ha site in Konawe, South East Sulawesi has all the necessary approvals to commence operations. The other sites have been allocated and approved for use but yet to be fully licensed, a process which requires approximately 3 - 6 months per site.

The initial program of refocus for the Company is the cultivation of corn as an immediate large-scale cash crop. Corn has significant value as c feed for livestock, a food product, and a basic raw material for the production of ethanol.  This initial corn crop will be sold into the domestic market (currently Indonesian imports 1.5 million metric tons of corn) where the demand is strong for corn as feedstock. 

The planting area required for each eucalyptus tree is a required radius of 1 meter.  Based on planting approximately 1350 trees per hectare, only 20% of the land is actually in use thus leaving 80% of unused space located between the trees.  Planting corn in the spaces between the trees will enable the company to maximize revenue while fertilizing the trees by using its post-harvest byproduct to continuously enrich the soil.  In the short term, while waiting for the eucalyptus trees to mature for harvest, the Company can anticipate three harvests annually (the local climate allows for continuous growth with a mature plant being produced in approximately 100 days) with the yield of approximately 5 metric tons per hectare per harvest. An additional 20 days after harvest are required for revitalization and preparation of the land for the next planting and subsequent harvest.   

Unique Business Philosophy

What sets Arrow and its partners apart from other plantation and natural resource developers is that the group develops timber (primarily Eucalyptus) plantation with large-scale farming (primarily corn) operations in partnership with the government of Indonesia, one of the countries largest non-profit organizations, the local people in each area and a select group of highly respected Indonesian companies. Through these partnerships, Arrow ensures that its efforts to create sustainable forestry,  farming and natural resource projects not only respect environmental concerns, but involve the local indigenous people as active participants and beneficiaries of the process.

To complement this program, Arrow combines its timber plantation operations with the large scale farming operations for the growth corn, as a cash crop and subsistence crops including rice, soybean, tilapia (fish farming) and chicken farming. The group’s skilled agricultural staff  instruct the local farmers to implement techniques that combine American forestry techniques with modern agro-biotechnological programs devised for their specific locations. This approach results in creating a sustainable and renewable organic growing programs and zero impact environmental facility development.  All of the company's projects are designed to sustain or improve the environment while improving the standard of living for local farmers.

Environmental and Wildlife Concerns

Arrow understands that any large-scale natural resource development operation faces environmental and wildlife conservation concerns. In the interest of good corporate citizenship, a plan has been developed to ensure that all operations are sensitive to cultivating these resources in a renewable and responsible matter.

The group's team of scientists, bioengineers and environmentalists have developed the plantation, farming and plant operation plans consistently focusing on environmental and wildlife concerns. Each program includes a comprehensive plan for the relocation of wildlife to a preserve, sensitivity towards the preservation of bio-diversity, investigation of medical benefits from native flora, and the replanting several noble species of trees.

Competitive Advantages

The agro-biologically engineered eucalyptus species that Arrow's will use in its plantation operations was specifically designed by Arrow's scientific team for optimal growth in the tropical climates of Indonesia. These bio-engineered eucalyptus trees have several key advantages:

• a 3 to 4 year growth cycle vs. 10 to 12 year growth cycle in other climates and topographies;
• resistance to adverse weather, infestation, and poor soil conditions;
• the ability to sustain growth without the use of many toxic agrochemicals which are environmentally degrading.

Size: With its exclusive land concessions, Arrow and its strategic partners will control the largest timber plantation/farming operation in the region.

Location: Arrow's plantation operations benefit from their locations in Indonesia in two distinct and significant ways:

• The plantations' location close to equator creates a 12-month growing season vs. the 7 to 8 month growing seasons in other climates.
• Close proximity to Asian market allows shipping to the Asian market in 10-14 days. The next-closest large-scale suppliers products must travel from South America, Canada or Russia requiring a minimum of 60-75 days. Arrow thereby delivers its product to market faster than its competitors and at a lower cost while enjoying a significant market advantage and a higher profits.

The Market

Arrow and its partners are poised to capitalize on increasing demand for timber products, biofuels and food stock in developing international markets, most notably the Asian market, where rising standards of living have created a demand for larger quantities of printed material, packaging, personal care projects, industrial paper supplies, ethanol, corn, rice and soy.

It is projected that worldwide demand for these products and their derivatives exceeds current available supply within the next five years. Within the Asian market demand for more energy related products has been increasing at least 5% annually for the last 10 years. The current significant increases in the cost of crude oil has made the production of ethanol highly profitable and cause significant increases in the cost of the biomaterial necessary for its production. As technological products are used more and more, there is an increasing demand for industrial and commercial paper products. As standards of living rise across the world, there is also an increased demand for packaging supplies, as well as personal care and hygiene products. Global paper consumption trends continue to edge higher, confirming its utility as a low cost, high-performance and flexible material. Paper has been labeled by many as “essential” for development and modern living. Global consumption has increased at least 25% during the 20th century, and by a factor of three in the last three decades alone. Among the Asian countries, China in particular, is experiencing a major escalation in demand of raw paper material and paper products.  As the migration from the farms into the city in China and India increases their agricultural output has been declining.  These migrations and subsequent decline in production of creating ever increasing demands for corn soy and rice.  The company's proximity to these markets creates an extremely competitive advantage over suppliers such as the United States and South America.

The increase in demand was rapidly exploited in many areas by timbering operations that stripped forests bare with no regard for their environmental damage, or replenishing the timber resources being consumed. This mercenary behavior was responded to with strict and immediate regulation and monitoring of the industry by the World Bank, government environmental agencies and consumer advocacy groups on lumbering operations worldwide. Despite the increase in demand, the shortage of suppliers who are able to meet environmental standards has caused the forestry industry to shrink by an estimated 9.4 million ha per annum.