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The role of APKJ in ‘Promoting sustainable
timber production’
Sulthon M Amin
Secretary of APKJ
Outline
I. Global Furniture trade and
value chain dynamic
II. The role ofAPKJ
III. Lesson learnt
IV. TheWays 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
Chains
It 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
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
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
Terima
Kasih

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The role of APKJ in ‘Promoting sustainable timber production'

  • 1. The role of APKJ in ‘Promoting sustainable timber production’ Sulthon M Amin Secretary of APKJ
  • 2. Outline I. Global Furniture trade and value chain dynamic II. The role ofAPKJ III. Lesson learnt IV. TheWays Forward
  • 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. 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)
  • 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. 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. 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. 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. 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