The project began with a kick-off workshop held at the CIFOR campus on 11 - 12 August 2008 (Annex 1). The 37 participants in attendance included project partners, representatives from the Ministry of Forestry, the Ministry of Cooperatives and Small and Medium Enterprises (SME), local government agencies, Perhutani, local NGOs, the Indonesian Furniture Industry and Handicrafts Association (ASMINDO), small-scale furniture producers and other related stakeholders. During the workshop, a memorandum of understanding was signed between CIFOR, represented by Dr Bruce Campbell, and the Jepara District Government, represented by Jepara District Head, Drs Hendro Martojo (Annex 2).
A livelihood survey was undertaken to gain an overview and understanding of people's livelihood strategies in Jepara, particularly those living in areas that rely on the furniture industry. The questionnaire (Annex 3) covered data on demography, assets, and income from different sources as well as respondents' perceptions of the furniture industry. The survey commenced in October 2008 by collecting secondary data at the village, subdistrict and district levels. Findings revealed that incomes earned by furniture producers were generally higher than those of average households, while urban and semi-urban areas have varied sources of income.
A furniture workshop study aimed to determine the efficiency of small-scale furniture producers in Jepara District and identify the constraints they face. A questionnaire (Annex 4) was developed to collect data for efficiency and constraints analyses. The data collected covered workshop characteristics, production, capital, labour, inputs, growth, credit and support, constraints, marketing and networks. Findings revealed that around 30% of the workshop owners surveyed in 2005 had abandoned their businesses as a result of high input costs and low selling prices for their products. Many workshop owners were unaware of how to calculate production costs and profits, and none kept financial accounts.
An international market survey (Annex 5) identified seven main export destinations - France, the United Kingdom, Australia, the Philippines, the United States of America, Hong Kong and Spain - accounting for 91% of wooden furniture exports from Jepara. Marketing and raw material supplies were identified as the main problems facing exporters. A domestic market survey revealed a potential opportunity for Jepara's furniture industry, free from the problems caused by fluctuating exchange rates.

Project partners have produced a number of papers; the Faculty of Forestry at the Bogor Agricultural Institute (IPB), for example, produced a background paper entitled "Domestic and International Market of Indonesian Wooden Furniture" (Annex 6). Teams and individuals from the Jepara Multi-stakeholder Forum (Forum Rembug Klaster (FRK) have written their own personal stories, which provide a different perspective of Jepara's furniture from that of its real actors (Annexes 7 - 11). The Ministry of Forestry's Forest Research and Development Agency (FORDA) has produced papers relating to value chain studies.
A multi-stakeholder workshop was held in Jepara on 22 - 23 December 2008 to communicate the ongoing results of project activities to Jepara stakeholders, (Annex 12). At the request of participants during the workshop, and supported by results of the study, we facilitated the establishment of the Association of Jepara Small-scale Furniture Producers (APKJ).
To ascertain appropriate roles for APKJ and develop scenarios for more equitable power and income for sustaining both forests and the furniture industry, we carried out a value chain study. The research used ILO's Guide for Value Chain Analysis and Upgrading in identifying the nature of relations between actors within the chain. Study findings revealed finishing companies/exporters and producers to be involved in a hierarchical type of value chain governance, as indicated by vertical integration and extremely limited autonomy for making decisions at the producer level. Exporters, however, are driven by importers and global brokers, which are in directed network relationships with international retailers. Small-scale producers too are in directed network relationships with domestic brokers, as indicated by their main customers taking at least 50% of output; customers defining products and providing technical assistance; and an information imbalance. On the other hand, mechanised furniture producers are in a better position and have balanced network relations with those higher up the chain, indicated by intense information flows in both directions between producers and buyers, problem solving through negotiation, and both sides having capabilities which are hard to substitute. Four scenarios were devised to improve the furniture industry in Jepara for the benefit of small-scale producers. These were called: Collaborating Down, Moving Up, Green Product and Small-scale Association, the last of which is being implemented at the moment by small scale producers in Jepara.
On 22 December 2008, CIFOR officially launched the local Furniture Value Chain (FVC) project office, located in the Jepara Trade and Tourism Centre (JTTC) building, to facilitate research activities and stakeholder engagement. The office is an in-kind contribution from the Jepara District Government.