This presentation by Herry Purnomo during the Forests Asia Summit in the discussion forum "Equitable development: Improving livelihood benefits for smallholders in the forestry value chain" shows why value chains are important, what the state of the global furniture trade is and the focuses on the local Jepara furniture is like.

1. Green Economy and
Furniture Value Chains
Forest Asia Summit
Jakarta, 5-6 May 2014
Herry Purnomo

2. Green Economy
• Advocated after Rio+20
summit in June 2012.
• ‘The Future We Want’ (UN
2012):
• Poverty eradication
• Sustainable
consumption and
production
• Protecting and
managing natural
resource development
UNEP 2011

3. SBY Speech for Rio+21 Summit
We know the problems
We know the solutions
We must act now!
SBY@cifor
How can research support this?
• Research for Development (ACIAR)
• Research for Impact (CGIAR-CRP 6)
• Action Research (FORDA and CIFOR)

4. Why VALUE CHAINS?
• Globalized trade make
fragmenting of
production
– In different location
worldwide
• Linking to global value
chains can provide
better market access
• SMEs are becoming
global players
Kaplinsky and Readman (2000)

5. Global furniture trade
 The global furniture exports
were US$ 74 billion
 Indonesia’s share was about
2%, Malaysia 3% and
Vietnam 5%

6. Jepara Furniture
• 10% of Indonesia’s export
- $110 million annually
• 11,981 businesses
• 0.9 million m3 wood
• $0.8 billion economy
• Women are paid less than
men
 Hit by global financial crisis
in 2008
 Reduced market, incomes and
Incentive to grow trees

7. METHODS
• Participatory Action
Research (PAR)
• On the Reflection phase
we implemented Value
Chain Analysis (VCA),
surveys and studies
including gender.
Reflec
-tion
Plan-
ning
Action
Moni-
toring

8. Scenarios based
collective action
1. Moving Up
– Small-scale producers
move up to the higher
stages in the value
chain
2. Green Product
– Voluntary and mandatory
certification

9. 1. Small-Scale Association
(collective action)
2. Collaborating Down
3. Furniture Roadmap: District
regulation development

10. MAIN IMPACTS
 Improved incomes
(statistically significant)
 They produced certified
furniture
 Better furniture governance:
the association involved in
decision making process and
its implementation

11. Lessons to be
learnt
• Baseline study is a key to
assess impacts
• Engage policy makers since the
beginning
• Value chain analysis
comprehends the distribution of
income and power
• Action research can make
difference on the ground
• Work at policy level to sustain
the impact

12. Preliminary
study
Planted forest
Industries
Landscape
Trade and market
Furniture
Pulp and paper
Construction
AgricultureNatural forest
Retailers
Wholesalers
End consumers
Wood panels
Log
flows
Product
flows
Money
flows
Money
flows
Vertical
inequality
Horizontal inequality
Non-
vegetated
land
• Researching
landscape
• Investing
landscape
• Multi-
stakeholder
approach

13. Thank
You