French tire manufacturer Michelin, which previously held a 49% stake, has acquired the remaining 51% share of Royal Lestari Utama (RLU) — a joint venture with Indonesia’s Barito Pacific Group — thereby becoming the sole owner of the sustainable rubber plantation project.
Michelin’s Commitment to Sustainable Rubber Production
The RLU sustainable forest project, launched in 2015, aims to establish a large-scale sustainable natural rubber production base across 70,000 hectares in Jambi (Sumatra) and 18,000 hectares in East Kalimantan (Borneo). These areas had previously suffered from severe deforestation and land degradation before Michelin and its Indonesian partner intervened.
Over the past six years, Michelin has planted more than 23,000 hectares of rubber trees, while 39,000 hectares have been preserved for agroforestry and community farming activities. The project also includes strong social components — targeting the improvement of livelihoods for 50,000 residents, the creation of 4,000 jobs, and training programs for local rubber farmers.
Since 2015, Michelin has invested over €1 billion in its various business operations in Indonesia. The company views this initiative as a long-term strategic opportunity to actively promote sustainability in the natural rubber industry, while balancing economic, social, and environmental goals.
“Becoming the sole owner of RLU means Michelin will continue to invest in a demanding but remarkable long-term project that integrates social responsibility, environmental protection, and economic performance,” said Vincent Rousset-Rouvière, Michelin Group’s Director of Purchasing.
“We are proud of what we have achieved with Barito Pacific and confident in RLU’s future role in transforming Indonesia’s natural rubber sector while improving livelihoods and conserving forests and ecosystems.”
Michelin Partners with Hyundai on Next-Generation EV Tires
In a related development, Hyundai Motor Group of South Korea has signed a new partnership with Michelin to co-develop next-generation tires for premium electric vehicles (EVs).
This new three-year agreement builds upon their first five-year collaboration, launched in 2017, which resulted in exclusive tires for the IONIQ 5 and joint advancements in tire testing and material innovation.
The latest partnership will focus on:
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Eco-friendly tire materials with higher sustainability content
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Optimized performance for high-end electric vehicles
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Real-time tire monitoring systems to enhance autonomous driving capabilities
These next-generation tires will be used on Hyundai’s upcoming premium EV models, designed to deliver durability, driving performance, and energy efficiency — crucial for longer driving ranges in electric mobility.