Frequently Asked Questions
Questions about the Trees Planting program, also known as the Green Warrior Program:
1. Why are tree buyers known as Green Warriors?
Our plantation trees can be harvested at 6 years old and through our proprietary process, we can convert softwood to hardwood. It is our goal to reduce deforestation, and all our tree buyers,
regardless of how many trees they own, are united in our efforts to green the earth, even as they are solving their own future financial needs.
2. Do I need to make periodic purchases or sales to qualify for bonuses?
No, you don’t have to. You can buy as many packages as you wish, as and when you wished to, or you can just buy one package.
3. Can I buy as many trees I want?
Yes, but you will have to buy in multiples of packages.
4. What if my trees are destroyed by natural or man-made disaster?
Currently we have back up trees that are owned by the company and Insurance. So if your 1-year-old trees were destroyed, it will be replaced with 1-year-trees. If your 2-year-old trees are destroyed, we will replace you 2-year-old trees, and so on. In the worst case scenario, if there are no more back trees, we will do a replant for you at no extra cost.
We are currently looking into insuring our trees against perils. Now we already cooperated with Lloyd's International Insurance to keep trees partner, owner trees will be insured against perils such as fire, tsunami, earthquake, aircraft crashing into plantation, etc. that resulted in destruction of their trees. If the backup tree is not available it will be replaced by insurance where: trees aged 1-3: $ 25 and replaced trees 4-5 years old: $ 40
5. Who owns the land?
The land is leased from the government for 10 years.
That’s also the reason why our tree owners are only entitled to the profits from 2 harvests only.
6. Will there be a situation where the company has insufficient trees for sale?
Currently we have trees over 1,500 hectares of land leased from the government, and growing... and we have over a million trees.
The government of Indonesia has been extremely supportive of our program. Along with that and our growing number of Green Warriors, we don’t foresee a situation where we have insufficient trees for
sale.
Since 2008, the government has also been giving out Jabon saplings to farmers, so we may choose to include these farmers into our management system, if the need arises.
7. How do I know which trees are mine?
You will receive a certificate bearing the geo-tag (GPS coordinates) of every single tree you own. This ensures no duplication and the certificate is endorsed by the government of Indonesia.
8. How long is the term of investment?
Each package of trees is entitled to one harvest. The harvest is 5-6 years from the purchase of the trees.
9. How do I profit from being a Green Warrior?
You profit in two ways.
As a tree owner, you will be enjoying the profits from the sale of trees. You will enjoy 70% of the sale price at the harvest,.
As an active Green Warrior, you are not only making good extra income, you can help others to make extra income too! Only by campaigning this program and there are other partners involved planting trees.
10. How will I be paid the proceeds at harvest?
All proceeds will be paid out to you via bank wire to your designated bank account.
11. Can I just be a Tree Owner without being an active Green Warrior who introduces others to the program?
Yes. Regardless of whether you are an active Green Warrior or not, you would still have planted trees that helped green the earth.
You are still regarded as a Green Warrior, albeit an inactive one.
12. Can I exit from the program prematurely before the harvest time?
Yes and no. No, because the first harvest is in 5 years, and there is no obligation from the company to buy back from you. Yes, you can, if you can find someone to buy over your holdings. You will need to inform us, so that we can effect the change in title to reflect the new owner.
13. Why is it that Tree Owners are only entitled to one harvest only, since the trees will regrow naturally?
The reason for this is that we only lease the land from the government for 5 years. That’s why as Tree Owners, you are only entitled to one harvests.
After the 2nd harvest, the 3rd harvest will belong to the farmers.
Thereafter, we will renew another 10 year lease and restart the program for new tree buyers.
14. Who are the buyers of these trees?
Currently, we already have a domestic market in Indonesia that we are supplying to, where the demand for good quality plywood, for example, is still higher than what we can currently supply.
The Principal Office is also concurrently developing new products using GWoods, a proprietary hardwood product, into various fashion products like designer wood watches, sunglasses frames, furniture, etc.
We also supply to other manufacturers of plywood, bare core wood products as well as veneers.
Global Agro Ventures Singapore Pte. Ltd., GMN's International Head Quarters in Singapore is currently working with GAVWOODS International to manage (its) global distribution of (its) wood
products, such as hardwood flooring, decking, paneling, furniture, etc. to global markets.
Questions about Political Risks
1. What if there is a change of government policy that adversely affect my tree ownership?
We expect that future governments will honor the current governmental certification that foreign tree owners are legitimate owners of the trees.
A Political Risks insurance program will add another layer of assurance to our foreign Tree Owners against any political changes that may adversely affect their ownership and profits.
The insurance may be included at a small cost to current and future owners in the future.
Questions on Taxation
1. Do I have to pay tax on my profits?
Yes. In Indonesia, there are two types of taxes you will be subjected to.
Income tax - Every commission, bonus or cash reward payable to you attracts a 3% deduction for tax
Profit tax - This is applied to the profits gained from the sale of trees from the harvests. The current
withholding tax is levied at up to 15% of profits.
2. Will I be tax again in my home country?
As of 2011, Indonesia had signed a Double-Tax Treaty with 59 countries. If you are a tax resident in any of these countries, you will not be double-taxed. You will have to consult with your tax accountant to find out if you need to declare this as capital gains or not. See:
https://www.kpmg.com/ID/en/IssuesAndInsights/ArticlesPublications/TaxNewsFlash/Documents/TaxNewsFlash-November-2011.pdf
Note: Neither PT. Global Media Nusantara nor any of our affiliated partners or companies is liable nor is able to advise with regards specific tax questions. Tree Owners are advised to consult a tax
accountant in their home country with respect to their tax positions.
Questions on Legitimacy
It may be good to note that PT. Global Agro Bisnis, which is PT. Global Media Nusantara’s plantation and product management arm, employs an ISO 9001:2008 management system (Certificate No.A09 141500-115 for PT. GLOBAL AGRO BISNIS) that’s certified by
ASCRICERT INDONESIA, an accredited certification company under the jurisdiction of KAN (Komite Akreditasi Nasional), an Accreditation Body Member of the IAF Members and Signatories. As such, it’s legitimacy is unquestionable. Nevertheless, the following may help to address the common questions with regards such multi-level marketing programs.
1. Is this a pyramid scheme?
No. Pyramid schemes are illegal in most countries. Usually, a pyramid scheme does not involve any products. Memberships are sold and members fees are used to pay others who comes in later, with
the organizer of the pyramid siphoning off part of the fees. We do not charge membership fees, and the investment is to buy and own the trees in your own name. Hence, all Green Warriors who are
participating in our program does so because they are firstly a Trees’ Owner themselves.
2. Is this a Ponzi scheme?
No. Like a pyramid scheme, Ponzi schemes are illegal in every country. A ponzi scheme basically takes a portion of the "investment" or membership fees, from one party to pay another, typically without any real products changing hands. We do not charge membership fees, and the investment is to buy and own the trees in your own name. Hence, all Green Warriors who are participating in our program does so because they are firstly a Trees’ Owner themselves.
3. Does the person at the top make the most money?
No. Our multi-level marketing program is a work system. Each account is allocated with two branches, a system that ensures that the Green Warrior needs to be diligent in managing the business to maximize personal income. In other words, if someone in your Branch 1, is very hardworking and is building a team rapidly, while you are not working your Branch 2, that person in your network will make more money than you.
4. The returns sounds too good to be true. How can it be achieved?
Yes it does and we make no apologies for it. It is achievable because our program allows the buyers to become partners with the company by purchasing the trees at a year old, and holding it for five years before harvest. So it is purely a mathematical calculation of buying in early at an average of about US$20 per tree, when the tree was about 75mm (3inches) diameter and selling when the trees are about 300mm (12inches) in diameter and 15m (50 ft) or more tall, with a market value of about US$80 - US$140 per tree.