The role of APKJ in ‘Promoting sustainable timber production'

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This presentation by Sulthon Amin from the APKJ (Asosiasi Pengra Kecil Jepara) given during the Forests Asia Summit in the discussion forum "Promoting sustainable timber production" gives an overview over global furniture trade and value chain dynamic, the role of APKJ, lesson learnt and the ways forward.

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The role of APKJ in ‘Promoting sustainable timber production'

  1. 1. The role of APKJ in ‘Promoting sustainable timber production’ Sulthon M Amin Secretary of APKJ
  2. 2. Outline I. Global Furniture trade and value chain dynamic II. The role ofAPKJ III. Lesson learnt IV. TheWays Forward
  3. 3. 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
  4. 4. 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)
  5. 5. Jepara Furniture Value Chains It is buyer driven value chains
  6. 6. 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
  7. 7. Moving Up: SMEs’ strategy to obtain greater value added Participating 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
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. Terima Kasih

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