Spatial modeling approach to clustering furniture industry and regional development in Jepara, Indonesia

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In the Indonesian furniture industry, particularly in Java, about 95% is managed by small-scale and medium enterprises (SMEs). These SMEs formed natural clusters, which are not efficiently distributed in terms of obtaining wood material and marketing. This inefficiency can make SMEs less competitive compared to Chinese and Vietnamese furniture industries. This paper provides spatial analysis of SMEs-based furniture industries in Jepara, Central Java, which contributes 10% to the national export value (US$ 1.5 billion). The spatial analysis comprises elements of workshops, tree plantations, log parks, warehouses, showrooms, sawmills, ironmongeries and local markets. This study aims to provide options for efficient SMEs clustering in connection to regional development, including the future location of the furniture industry.

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