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.

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)

5. Jepara
Furniture
Value
Chains
It is buyer
driven
value
chains

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

11. Terima
Kasih