IMPLEMENTATION STRATEGY OF TIMBER LEGALITY VERIFICATION SYSTEM (SVLK) IN THE FURNITURE INDUSTRY IN INDONESIA: SWOT AND AHP ANALYSIS.

Abstract

The objective of this study was to identify best implementation strategy of Timber Legality Verification System (SVLK) in the furniture industry in Indonesia using Strength, Weakness, Opportunity, and Threat (SWOT) and Analytical Hierarchy Process (AHP) approaches. SWOT analysis distinguishes internal and external factors based on experts consultation. A hierarchy analytical structure was then developed with goal, criteria/factors, and the alternatives strategies identified in the SWOT matrix. The various criteria/factors, and alternatives were graded by experts and then computed using Expert Choice software. Best alternative was identified according to the results. The best alternative implementation strategy of SVLK in the furniture industry in Indonesia was found to be incentives to furniture industry. This indicates that the furniture industry in Indonesia is in need of full government support to encourage the entire furniture industry to get SVLK certificate. The incentive is recognized as a form of stimulant to industry and the implementation of these incentives can take the form of cost subsidy, technical assistance on easiness in licensing, export process, and others. This would ensure immediate gain of the SVLK certification, impacts, and best performance for the successful implementation of SVLK in the furniture industry in Indonesia.