In Southeast Sulawesi, Indonesia, a slight figure emerges from the forest carrying a 100 kilogram bundle of poles with a tumpline looped over his head. He has spent three weeks in the bush, loosening the grip of the climbing palm on old-growth trees, peeling off its hooked spines, and starting it off on a journey that would typically see the canes weaved into furniture for distant verandas.

Indonesia is the world’s largest rattan producer, accounting for 70 percent of total recorded production and home to more than 300 species, although only a handful have commercial value. Until 2022, rattan harvesters, village collectors and cane processors in Sulawesi and Kalimantan made a good living catering to international markets. Then, global demand for their products dropped, throwing the entire local supply chain into disarray. 

“Harvesters have shown remarkable resilience by turning to furniture-making for domestic markets, which act as a buffer providing them with an alternative source of income,” explains Ahmad Dermawan, a former scientist with the Center for International Forestry Research and World Agroforestry (CIFOR-ICRAF) who has investigated rattan supply chains in Central and Southeast Sulawesi and in Central Kalimantan.

To realize the economic potential of domestic markets and ensure they are both profitable and sustainable, he says, subnational governments can support the sector in two crucial ways: by building the capacities of smallholders as craftsmen and businesspeople, and by systematically monitoring local trade flows to understand who produces what, where. 

To understand current rattan value chains, and what they mean for the livelihoods of smallholders, the researcher conducted household surveys, key informant interviews and focus group discussions across 14 villages and seven subdistricts, reflecting a variety of perspectives in production and trade—in Kalimantan, rattan mostly comes from gardens, whereas in Sulawesi it is harvested from natural forests.

He also interviewed subnational government representatives to shed light on the policy environment at the provincial and district levels. What he found has implications for both local livelihoods and the future of rattan yields across the islands.

Sustainable rattan markets

The decline in the demand for rattan in studied areas has been sharp, and can be partly attributed to economic woes in end markets such as Europe. In Central Sulawesi, a major collector-processor said his shipments have fallen by 75 per cent; in Southeast Sulawesi, another interviewee has shipped no rattan since early 2022. 

In response, harvesters in Sulawesi are increasingly turning to producing simple furniture items or handicrafts in their villages, then selling them alongside main roads connecting various islands.  

Alternatively, they sell their harvest to local furniture makers, earning IDR 4,000 (USD 0.25) per pole as opposed to the IDR 9,000 (USD 0.60) they used to earn from collectors. Their income has dwindled, but their ability to quickly adapt to the new situation means the money keeps flowing. 

Story development: Gloria Pallares | Video production: Aris Sanjaya | Web design: Gusdiyanto | Publication coordination: Budhy Kristanty