Promoting Inclusive Global Value Chain: The Indonesian Rattan Furniture Case Study

Abstraksi

Rattan is one of the non-timber forest products (NTFP), which provides opportunities to deal with deforestation in Indonesia and other emerging countries. However, rattan farmers in Sulawesi and Kalimantan suffer from the very low price due to lack of demand, while the Industry in Cirebon, Surabaya, and Central Java complains about lack of supply. Moreover, the downstream market in Europe and developed countries have relied on the plastic products due to lack of natural rattan. To fill the gap of regional disparities, the government and various non-profit governments have introduced capacity building program to the farmers. The research question concerns on how the program can tackle regional disparities across the archipelago. This study conducted the participatory research by involving various activities to promote sustainable rattan industry. The result indicates that introducing inclusive global value chain is not only provide job opportunities and local economic growth but also help to tackle regional disparities between Java and outer islands, between upstream and downstream industries, as well as between forest communities and furniture producers. This study also highlights some future challenging issues that need to be addressed.