Carving Out a Place In Global Markets: For Indonesia’s traditional woodworking industry, globalisation poses new challenges

By ILO

Globalisation is altering the traditional wood furniture sector in Central Java, the major employer and export-earner in the Province.

Competitive pressures from other Asian countries, and an unsustainable rate of logging in Indonesian teak plantations are bringing the industry to a crossroads.

The sector can compete by taking the low road, which would mean lowering wages, disregarding labour and environmental standards and avoiding tax and such measures. Or they can take the high road that would mean upgrading and innovation.

Local unions support the high road approach as the only sustainable option. Rulita Wijayaningdyah, of the International Federation of Building and Wood Workers argues that companies that look after their workers, offering decent conditions, equipment and pay, are achieving much higher productivity levels. The union is increasingly active but face the problem that the wood carvers are usually subcontracted, have no job security and little or no social protection.

(World of Work; no. 49, December 2003)