FLEGT License to leverage the capacity of small and medium scale furniture enterprises in Indonesia to access global markets

As the first and only country in the world to issue FLEGT licenses, Indonesia has ample opportunities to market their timber products to Europe. Compliance to the Timber Legality Verification System (SVLK) is key to have FLEGT license. Micro and small-scale furniture producers (a significant part of furniture producers in Indonesia totalling over 180,000 in 2017) have several challenges to comply with SVLK and therefore obtain the FLEGT license. Challenges consist of the high cost of compliance, lack of organization and institutional capacity for group certification, and lack of understanding of market benefits of SVLK. This project is implemented in Jepara (Central Java) and Pasuran (East Java), two centers of wood furniture in Indonesia. It is a collaboration between CIFOR and the association of wood-based furniture producers in Jepara (APKJ). The project assesses the SVLK compliance of micro and small furniture producers in Jepara and Pasuruan and aims to increase the SVLK uptake in these areas. This is done through: (1) Strengthening the organizational performance of APKJ to enable them to attract new, and especially young members.; (2) Improve the understanding of the furniture producers in Jepara and Pasuruan on market and demographic trends and their implications for the furniture industry.; (3) Take lessons and experiences in Jepara to prepare the foundations before setting up a furniture producer group in Pasuruan.; (4) Collaborate with Jepara and Pasuruan offices of furniture industry association namely ASMINDO (Indonesia Furniture and Handicraft Industry Associa tion), AMKRI (AMKRI is the Association of Indonesia Furniture and Craft Indonesia) and HIMKI (The Indonesia Furniture Industry and Craft Association) to share information and effort of strengthening SVLK. Using the data, the project partners collaborate with the furniture producers to identify key intervention points and to identify gender responsive strategies to increase the compliance to the SVLK.