PT Inhutani I is an abbreviation of “PT Eksploitasi dan Industri Hutan I” which was established in 1973 based on the Government Law (Peraturan Pemerintah) Number 21 in 1972. The company is a continuation of Perusahaan Negara (PN) Perhutani operated in East Kalimantan, known as PN Perhutani Kalimantan Timur. At the beginning, PT Inhutani I managed an area of about 2,2 million Ha of production forest in East Kalimantan which a concession right of 20 years started from 1973 till 1993. In 1995 PT Inhutani I obtained the second period of concession right valid from 1993 till 2013. PT Inhutani I expanded its working area to South Sulawesi which has a concession in Mamuju (now part of West Sulawesi Province) of about 30.000 ha.

Due to the new regulation in forestry based on the new Forestry Law No. 41/1999, as well as the new land-use policies such as the Provincial Land Uses Planning (Rencana Tata Ruang Wilayah Provinsi) issued in 2001, all the concessions have to adjust their working areas in the new form of concession permit known as IUPHHKA (Izin Usaha Pemanfaatan Hasil Hutan Kayu pada Hutan Alam) with the period of concession right is 45 years. Then, PT Inhutani I has a concession right divided into 7 Units of IUPHHKA in East Kalimantan, and 1 Unit IUPHHKA in West Sulawesi which the total area to manage about 630.000 ha.

In line with the development and the policy in forestry business, PT Inhutani I expanded its business to establish a timber plantation, wood industries and join venture companies in forestry business.