Understanding and Efforts of Furniture Industries Facing Eco-Labeling in Central Java and Yogyakarta-Indonesia
Forest destruction in Indonesia has become a very serious problem and global concern. Eco-labels aim to combat illegal logging, illegal trading, and forest conversion. Eco-labeling in the furniture industry is slower in Indonesia than in competing countries such as China and Vietnam, where China...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Indonesia
2016-07-01
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| Series: | International Journal of Technology |
| Subjects: | |
| Online Access: | http://ijtech.eng.ui.ac.id/article/view/370 |
| Summary: | Forest destruction in Indonesia has become
a very serious problem and global concern. Eco-labels aim to combat illegal
logging, illegal trading, and forest conversion. Eco-labeling in the furniture
industry is slower in Indonesia than in competing countries such as China and
Vietnam, where China has reached more than 1000 Chain of Custody (CoC) certification industrial units and Vietnam 238 units, while
Indonesia has achieved only 78 units. But eco-labeling is perceived as a
pressure on the international trade of the furniture industry. This study
examines how the furniture industry in Central Java and Yogyakarta understands
eco-labeling and what efforts the industry is making. Eco-labeling has a
positive impact on the industrial environment and sustainable forestry, and it
increases credibility/corporate image, market share, and profit. But not all
buyers demand eco-labeling, so some companies deal with eco-labeling either by
applying for certification or by looking for buyers that do not require the
eco-label. Buyers who do not require the eco-label result in companies having
less motivation to seek CoC certification. Other views about eco-labeling in
the industry are also counterproductive, producing further obstacles to
eco-label certification. Eco-labeling is often understood as unfair competition
from developed countries, implemented as a barrier to entry into trade, and as
inconsistent with The General Agreement on
Tariffs and Trade (GATT)/The World
Trade Organization (WTO). Eco-labeling is often considered a new form of
colonialism rather than an instrument of environmental management. |
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| ISSN: | 2086-9614 2087-2100 |