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Atlas of wooden furniture industry in Jepara, Indonesia

Author

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  • Roda, Jean-Marc
  • Cadène, Philippe
  • Guizol, Philippe
  • Santoso, Levania
  • Uzair Fauzan, Achmad

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.

Suggested Citation

  • Roda, Jean-Marc & Cadène, Philippe & Guizol, Philippe & Santoso, Levania & Uzair Fauzan, Achmad, 2007. "Atlas of wooden furniture industry in Jepara, Indonesia," MPRA Paper 5873, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:5873
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    Cited by:

    1. Obidzinski, Krystof & Dermawan, Ahmad & Andrianto, Agus & Komarudin, Heru & Hernawan, Dody, 2014. "The timber legality verification system and the voluntary partnership agreement (VPA) in Indonesia: Challenges for the small-scale forestry sector," Forest Policy and Economics, Elsevier, vol. 48(C), pages 24-32.
    2. Maryudi, Ahmad & Nawir, Ani A. & Permadi, Dwiko B. & Purwanto, Ris H. & Pratiwi, Dian & Syofi'i, Ahmad & Sumardamto, Purnomo, 2015. "Complex regulatory frameworks governing private smallholder tree plantations in Gunungkidul District, Indonesia," Forest Policy and Economics, Elsevier, vol. 59(C), pages 1-6.

    More about this item

    Keywords

    Indonesia; Java; furniture; timber; industrial district; production network; manufacturing cluster; flexible specialisation; SME; teak; trade;

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L69 - Industrial Organization - - Industry Studies: Manufacturing - - - Other
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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