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Indonesia in Comparative Perspective

Value Chain Approaches in a Stagnant Industry: The Case of Furniture Production in Jepara, Indonesia

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Abstract

This article assesses impacts of the Jepara Furniture Value Chain (FVC) project, which was intended to address challenges faced by small-scale furniture producers in Jepara, Indonesia. The assessment focuses on the effects of membership in the Jepara Small-Scale Furniture Producers Association (APKJ), a body started as part of the FVC project. Propensity score matching was used to compare differences in outcome variables between association members and matched non-members. A limited, positive impact of APKJ membership was found. Members improved their marketing, allowing them to retain more value than non-members. APKJ members were also more likely to have obtained certificates of timber legality. However, APKJ membership did not significantly affect firm profit and there was little evidence of an industry transformation. The paper also critiques the indiscriminate use of a value chain approach.

Artikel ini menelaah dampak proyek Rantai Nilai Furnitur Jepara (FVC), yang ditujukan untuk mengatasi tantangan yang dihadapi oleh produsen furnitur skala kecil di Jepara, Indonesia. Studi berfokus pada dampak keanggotaan dalam Asosiasi Produsen Furnitur Skala Kecil Jepara (APKJ), sebuah lembaga yang bermula sebagai bagian dari proyek FVC. Metode propensity score matching digunakan untuk membandingkan perbedaan dalam variabel keluaran antara anggota asosiasi dan bukan anggota. Kami menemukan dampak positif namun terbatas dari keanggotaan APKJ. Para anggota dapat memperbaiki cara pemasaran mereka, sehingga mereka dapat mempertahankan nilai lebih banyak dibandingkan dengan mereka yang bukan anggota. Anggota APKJ lebih mungkin mendapat sertifikat kayu yang sah. Keanggotaan APKJ tidak mempengaruhi secara signifikan keuntungan perusahaan dan tidak banyak indikasi adanya transformasi industri. Artikel ini juga mengritik penggunaan pendekatan rantai nilai yang indiskriminatif.

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