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Improving added value and small medium enterprises capacity in the utilisation of plantation timber for furniture production in Jepara region

Project ID

FST/2006/117

Project Country

Commissioned Organisation

University of Melbourne, Australia

Project Leader

Dr Barbara Ozarska

Email

bo@unimelb.edu.au

Phone: 

03 9250 6878

Fax: 

03 9250 6885

Collaborating Institutions

Department of Employment, Economic Development and Innovation, Australia
Forest Research and Development Agency, Indonesia
Bogor Agricultural University, Indonesia
Gadjah Mada University, Indonesia
Technical College of Wood Technology, Indonesia
Center for International Forestry Research, Indonesia
Forum Rembug Kluster, Indonesia

Project Budget

$1,000,955.00

Start Date

01/01/2009

Finish Date

31/12/2013

ACIAR Research Program Manager

Mr Tony Bartlett

Overview Objectives

The furniture industry is one of the 'big four' Indonesian pillars for export (along with rubber, palm oil, and footwear). The industry relies heavily on timber as its raw material, with an annual requirement of up to 7.5 million cubic metres. Wood species used as raw material for furniture (mainly teak and mahogany) come from natural forest and plantation/community forests. Jepara in Java is particularly known for its crafted wooden furniture, and the industry there involves 15,000 companies, mostly small-medium sized enterprises (SMEs). But the furniture manufacturing processes in Jepara, as in other regions of Indonesia, are characterised by poor production management and lack of optimisation in production systems - affecting production efficiency, timber recovery rates, and quality of products while creating a significant amount of timber waste. These SMEs would capture higher value if they adopted better drying, treatment and finishing processes, and this project aims to support the Indonesian furniture industry by enhancing value-adding from plantation timber production. The project's main objectives are to increase timber recoveries and furniture quality through the improvement of processing and manufacturing methods for teak and mahogany timbers, and to explore new manufacturing technologies for new products and designs that would be competitive on international markets. As well the project will increase Indonesian timber processing research and training capacity and also monitor and analyse economic impact of improvements and innovations introduced to SMEs during the project.

Progress Reports (Year 1, 2, 3 etc)

Year 1

Although the Project start date was 1 January 2009, delays in obtaining signed Project Agreements between the contractual parties meant that research activities of the project did not commence until the beginning of May 2009. Despite the delayed start, the project has made an impressive progress during Year 1 with active participation of all project partners.

The major activities and achievements during the first year are as follows:
1. The Project Steering Committee was formed consisting of two representatives from each partner organisation.
2. The assessment of research capabilities of each partner organisation involved in the project was undertaken to facilitate the development of networking arrangements between the project members. This knowledge and experience will be essential in ensuring the long-term sustainability of the project outcomes and will enable the participating organisations to take the role of the "value-adding experts" after the project is completed.
3. The criteria for the selection of the Industry Champions were developed by the project partners. Sixteen companies were selected as the members of the Industry Champions representing various types of sizes and models of the Jepara furniture industry and various aspects of wood processing and manufacturing. The Industry Champions will be the first beneficiaries of the project outcomes as the improvements and implementation of manufacturing methods, designs and products, will be firstly undertaken by these companies.
4. The Project Field Officer, Mrs Nurul Izza, was appointed to the project and is based at the project office in Jepara. The Field Officer is playing an important role of linking the project researchers with the Industry Champions.
5. Five teams of researchers conducted a detailed analysis of the current capabilities of the 16 Industry Champions, which included all major processing and manufacturing stages of the production process:
 Sawing.
 Preservative Treatment.
 Drying.
 Manufacturing.
 Finishing.
A detailed report was prepared on each specific aspect of the production process for each Industry Champion. The individual reports were then combined into five final assessment reports: Sawmilling, Treatment, Drying, Manufacturing Process and Finishing. The reports provide details on the assessment of all aspects of processing and manufacturing processes applied by the Industry Champions, as well as provide general comments on the current industry practices and recommendations for improvements and changes. A General Assessment Report has been developed which provides the summary information on the assessment of five processing and manufacturing stages of the wood products production process without revealing any confidential information on the Industry Champions. The report will be made available to the government organizations, all industry stakeholders, NGOs and other relevant organizations.
6. Priority research projects were identified and teams of researchers to carry out the studies were formed. The projects include the study on alternative species which could be used for high value wood products, research on preservative treatment and developing drying schedules for teak and mahogany. The review of standards related to furniture products, both Indonesian and Australian standards, has commenced.

Location

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