Atlas of wooden furniture industry in Jepara, Indonesia

Roda, Jean-Marc and Cadène, Philippe and Guizol, Philippe and Santoso, Levania and Uzair Fauzan, Achmad (2007): Atlas of wooden furniture industry in Jepara, Indonesia. Published in:

Abstract

In this document, we study the industrial district of Jepara, Indonesia. It is specialised in furniture production, for the Indonesian consumption, as well as for worldwide exports. We summarize the main features of the dynamics of the firms involved in the Jepara industrial complex with a quantitative analysis of flows among them, and between them and markets elsewhere. A specific method of spatial analysis has been designed, and merged with other existing methods for the analysis of forest production networks and social networks. This method allows to take in account and to accurately assess the number of very small workshops that can not be evaluated by classical methods. We demonstrate that the extent of wood industry and activities is considerably underestimated by both the official statistics and the existing literature about Jepara. We present the results through synthesis maps. A total of 15 271 units of production have been identified, employing approximately 170 000 workers in Jepara. The activity generates creates a considerable revenue: between 11 900 to 12 300 billions Rp/year of added value (about 1 billion Euros/year), that is to say between 70 to 78 million Rp/worker/year. The district of Jepara consumes between 1.5 to 2.2 millions m3/year or round wood, and in other words, we found that the use of around 9 m3 of round wood, sustain 1 fulltime employee per year. The organisation of the production is typical of an industrial district, with a high level of intertwined relationships and sub-contracting between the production unites, a high specialisation of them, and a prevalence of the small and very small units in various steps of the production, compared to the bigger integrated units.

• Item Type: MPRA Paper
• Language: English
• Keywords: Indonesia, Java, furniture, timber, industrial district, production network, manufacturing cluster, flexible specialisation, SME, teak, trade
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q23 - Forestry; L - Industrial Organization > L7 - Industry Studies: Primary Products and Construction > L73 - Forest Products; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure ; Size Distribution of Firms; L - Industrial Organization > L6 - Industry Studies: Manufacturing > L69 - Other; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q17 - Agriculture in International Trade; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L23 - Organization of Production; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade

References

Alexander, J. and Alexander, P. 2000 From kinship to contract? Production chains in the Javanese woodworking industries. Human Organization 59(1): 106–116. Cadène, P. and Holmström, M. 1998 Decentralized production in India: industrial districts, flexible specialization, and employment. Sage new Delhi, India. Departemen Kehutanan Republik Indonesia 2004 Produksi kayu bulat per propinsi lima tahun terakhir. http://www.dephut.go.id/ (Web access 30 May 2007). District Office of Industry 2005 Trade and cooperatives, Jepara. Cited in Loebis, L. and Schmitz, H., Java furniture makers: globalisation winners or losers? Development and Practice 15(3&4): 514–552. Guizol, P., Roda, J.-M., Muhtaman, D.R., Laburthe, P., Fauveaud, S., and Antona, M. 2005 Le teck Javanais, entre surexploitation et embargo. Bois et Foręts Des Tropiques 284(2): 11–22. Lazarovici, M. 2004 L’étude de la filière teck à Java : l’exemple de la filière informelle de Jepara. Université de Paris, Paris, France. 78p. Loebis, L. and Schmitz, H. 2005 Java furniture makers: globalisation winners or losers? Development and Practice 15(3&4): 514–552. Maynard, B. 2004 Sustainable wood report, background on the forest & timber sector: IFC-PENSA. Denpasar. 79p . Nadvi, K. and Schmitz, H. 1998 Industrial clusters in less developed countries: review of experiences and research agenda. In: Cadène, P. and Holmström, M. Decentralized production in India: industrial districts, flexible specialization, and employment, 60–138. Sage new Delhi, India. Posthuma, A.C. 2003 Taking a seat in the global marketplace: opportunities for ‘high road’ upgrading in the Indonesian wood furniture sector? Clusters, industrial districts and firms: the challenge of globalization. ILO, Geneva. Roda, J.-M. 2004 Forest products network analysis: a methodology guide. Cirad, Montpellier. Roda, J.-M. and Cadène, P. 2005 The case of the Jepara network: preparation of the study and methodology guidelines. Cirad, Bogor, Indonesia. 29p. Sandee, H., Isdijoso, B., and Sulandjari, S. 2002 SME clusters in Indonesia: an analysis of growth dynamics and employment conditions. Cited in Loebis, L. and Schmitz, H., Java furniture makers: globalisation winners or losers? Development and Practice 15(3&4): 514–552. Schartzenberg, M. 2004 L’étude de la filière teck à Java : l’exemple de la filière informelle de Jepara. Université de Paris, Paris, France. 102p. Schiller, J. 2000 Inside Jepara (a tale of two cities—part 2). Inside Indonesia 63(Jul.-Sept.): p 2. Sulandjari, S. and Rupidara, N.S. 2003 Analisis Rantai Nilai Pada Klaster Furniture di Jawa Tengah, laporan penelitian (Value chain analysis of furniture clusters in Central Java). Report prepared for ILO. CEMSED Centre for Micro and Small Enterprise Dynamics. Salatiga Indonesia 41p. Von Wulfing W.H.E. 1931 Het perkonderzoek van A.E.J Bruinsma; schattingstabellen vor djatiplatsoenen, Tectona grandis L.f. (Yield tables for Java teak plantations). Tectona part 25. Indonesia Forest Research Institute Special Publication, N 30 a.