Geographic Indications for Javanese Teak: A Constitutional Change

Thumbnail Image
Journal Title
Journal ISSN
Volume Title
"The central issue addressed in this paper is whether Geographic Indication as a tool can be applied to encourage some furniture industries and teak producers to take a collective action in improving teak product quality and increasing global market competitiveness. This paper will explore the possibility of implementing GI on teak as a mean to improve local community rights to manage teak resources, Perum Perhutani revenues and the perception of teak wood products on National and International markets, employment in furniture industry. The paper also discusses the institutional arrangement to enable GI implementation on teak. "After the 1998 financial crisis, Javanese furniture industries experienced a boom but illegal logging in State forest surged as well. Unfortunately this development was disconnected from forest resources capacities. Stakeholders made a living from bad practices and miss-use of forest resources. Due to bad qualities furniture were rejected and wood was wasted. Instead of producing high quality teak products, Java turned into a mass production of cheap furniture for national and international market. As a result wood supply was shrinking, putting today many furniture enterprises and their hundred of thousand employees in jeopardy. Indonesian furniture is getting a bad reputate on international market. "Indonesian people by culture have the perception that teak wood is something special; on world market teak is also the most known tropical species. Other good news: local community enthusiasm to plant teak is growing. Building on this we expect that geographic indications could help maintaining a common interest across the stakeholders. A geographical indication is a sign used on goods that have a specific geographical origin and possess qualities or a reputation that are due to that place of origin and the knowledge of local communities. Most commonly, a geographical indication consists of the name of the place of origin of the goods. Agricultural products typically have qualities that derive from their place of production and are influenced by specific local factors, such as climate and soil."
IASC, timber, forest products, valuation