Upgrading Wood-Based Industries: Harnessing the Social Network of Small-Scale Furniture Producers and Their Institutions
Abstract: Furniture is a major
export commodity in Indonesia with a total value of USD 1.96 million in
2007. Jepara District is one of the key
location for wood furniture production with 15,271 furniture related business
units employing 176,469 workers.
However, inefficiencies and
power imbalances throughout
the furniture value
chain have resulted
in overharvesting and uneven distribution of gains among the industry’s
actors. In contrast to price-setting
international furniture retailers, small-scale producers enjoy the least value
from their products. In order to
increase added value and competitiveness, small-scale furniture producers have
made efforts to upgrade by harnessing their social network and
institutions. This paper describes
small-scale furniture producers’ efforts to upgrade by utilising their social network
and institutions in Jepara. Data was
collected through in-depth interviews with members of the small-scale furniture
producers’ association. The research
provides insight into the nature of social networks and information flow and
develops future scenarios to upgrade.
The scenarios will not only benefit the furniture industry in Jepara,
but may also be adopted for similar industries throughout Indonesia and the
world, and potentially improve many people’s economies and livelihoods.
Author: Melati, Rika Harini
Irawati, and Herry Purnomo
Journal Code: jpkehutanangg100003
