Impact of Programme for Endorsement of Forest Certification (PEFC) on

Business Competitiveness : Evidence From East Java

Agus Purwanto*, Mirza Prameswari Saefuddin, Samuel Tanasjah Setiawan

Post Graduate, Pelita Harapan University, Tangerang, 15001
E-mail: agozpor@[Link]

ABSTRACT
The purpose of this research is to analyze and determine the effect of the application of
programme for the endorsement of forest certification ( PEFC) on business competitiveness for wood
industries. This research was conducted in several companies that use wood in East Java Indonesia with
200 employee respondents of 14 wood companies which have plans to implement PEFC. The background
of this research is due to inadequate research on the benefits of PEFC in timber companies in East Java
Province Indonesia. Data collection was carried out by distributing questionnaires from Desember 2019
until Januari 2020 and analyzing the data using Structural Equation Model (SEM) and Linear Structural
Model (LISREL) software version 8.70. The result of analysis show that the application of PEFC
significantly affected business competitiveness such as increasing customer satisfaction index, increasing
sales, increasing productivity and increasing company reputation. The Novelty of this research is a new
model of PEFC in East Java and this research could be used as a reference for further research in
Indonesia and other region in the world.

Keywords: Chain of Custody, Competitiveness, PEFC

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