The role of APKJ in ‘Promoting sustainable timber production'

The role of APKJ in ‘Promoting sustainable timber production’

Sulthon M AminSecretary of APKJ

Outline

I. Global Furniture trade and value chain dynamic

II. The role of APKJ

III.Lesson learnt

IV.The Ways Forward

Global furniture trade

The global furniture exports were US$ 74 billion (2011); ASEAN exports US$ 10 billion (2012)

It represents 1% of total world trade in manufactured goods

Indonesia’s share is about 2% of the total wooden furniture trade

Learning from Jepara About 12,000 businesses

Estimated 0.9 million m3 wood (mainly teak) processed yearly

Wood sourced from forests in Java and Eastern Indonesia

Furniture industry represents 26% of Jepara’s economy

SMEs account for 95% of production

Livelihoods of approximately 5 million people depend on furniture industry and its chains (Ewasechko 2005)

Jepara Furniture Value ChainsIt is buyer driven value chains

The role of producer organization

- Creating space for sharing information among small-scale producers and voice their aspiration

- Able to level the playing field with large-scale furniture association

- Recognized and acknowledged by Jepara government

- National level: actively participated in revision of Ministry of Forestry’ Decree on wood administration

• APKJ is Jepara small-scale furniture

producers association

• Established in 9 July 2009

• 124 members: 121 male and 3 female

representing furniture clusters in

whole kecamatan of Jepara

Moving Up: SMEs’ strategy to obtain greater

value addedParticipating in local and international trade

exhibitions and using internet marketing portal.

Direct wood buying and marketing for outer islands market such as Makasar, Sulawesi region

Applying Group and individual legality assurance systems (TLAS or SVLK)

9 producers got group TLAS; 1 producers got individual TLAS

Wood use efficiency

The roadmap devised locally has been well accepted by head of district as well as district parliament

Actions:

• Collaborating with wood traders e.g. Sulawesi (ongoing)

• Planting super clone teak (JUN) as model in nine plots in several kecamatan in Jepara

• There is a fair value added obtained from the value chains for tree growers to invest in tree plantation

Creating incentive to tree planter

Challenge in the production side

Price of wood raw material tend to increase over time

Reduce costs and increase competitiveness

Importance to access sustainable supply

Lessons learnt:from Indonesia to other ASEAN

countries

• Compliance with legality assurance system and other initiatives such as certification, CoC

• Importance to have strong producer organizations

• Roadmap on furniture as a collaboration of multi-stakeholder forum

The ways forward

• SMEs is committed to involve in landscape research to improve sustainability of wood raw material

• SMEs is committed to invest in plantations if SMEs get fair value added from value chains

• SMEs is committed to participate in multi-stakeholder dialogues to channelize their voices to government, broader market, bank, large companies and donors

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