Furniture is one of the four main Indonesian exports commodities, with palm oil, textiles, and rubber outside of oil and gas. Value-added is enjoyed by tens of millions of people involved in the value chain. But, the business is experiencing severe challenges to the issue of certification and forest products (green or certified furniture) and the scarcity of wood. Certified furniture is intended for the preservation of forest resources, the healthy processing of furniture making, as well as improving the welfare of artisans. From the supply side of certified furniture, large producers have been prepared while small producers are not ready. From the demand side, domestic consumers want to pay less for certified furniture, while British and Norway consumers are willing to pay 16% 7.5% respectively. The desire to pay less for certified furniture comes at a time when prices have increased between 630%., Certification can be done by a third party accredited by the Tropical Forest Trust (TFT), Indonesian Ecolabel Institute (LEI), or Forest Stewardship Council (FSC). When the increase in production costs are higher than the desire of consumers to pay, then the certification process becomes difficult to achieve. There is a need for specific strategies to market certified furniture. This article is a case study of Jepara furniture, which accounted for 10% of national exports.
Publication Year: 2011
Source: Jurnal Manajemen Hutan Tropika XIII(3): 127-134