What the Indonesian rattan export ban means for domestic and international markets, forests, and the livelihoods of rattan collectors

Rodd Myers

Research output: Contribution to journalArticle

13 Citations (Scopus)

Abstract

Rattan is a vine that grows in tropical forests and is used primarily in the furniture industry. It is a billion-dollar industry involving hundreds of countries but the raw material is overwhelmingly collected from forests. Indonesia is the world's largest supplier of rattan. This article uses a value chain approach to elucidate the market, environmental, and social implications of an Indonesian policy that bans the export of un- and semi-processed rattan, which started on 1 January, 2012. The justification for policy was to reduce competition so that domestic furniture producers would fare better in export markets. A year after the policy took effect, actors benefit differ- ently depending on where they are in the value chain and the nature of their activities. Only the largest and highest-end furniture factories on Java have experienced increased in sales. Forest-adjacent rattan-supplying actors in Kalimantan, Sulawesi and Sumatera are adversely affected. Those engaged in rattan smuggling from Indonesia are receiving the most immediate benefits. Together, these findings show that in the short term, the policy serves elite interests, whose political prowess enabled the policy to pass. In the long term, the industry is at risk of suffocation and the forests are jeopardised.
Original languageEnglish
Pages (from-to)210–219
Number of pages10
JournalForest Policy and Economics
Volume50
Early online date25 Jul 2014
DOIs
Publication statusPublished - 2015

Keywords

  • Value chain
  • Indonesia
  • Southeast Asia
  • Trade policy
  • Rattan

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