Indonesian Batik Industry Business Model Innovation

SMEs or In Indonesia called UMKM. Sumber: realkm.com

Indonesian batik industry in general is a Micro, Small, and Medium Enterprises (SMEs). SMEs sector is one that survive in the oppressed global economic situation. This is because SMEs generally utilize local resources, both human resources, raw materials, and equipment.

Batik industry in Indonesia has become a part of the creative activity in the arts industry. Creative industries is the collection of activities associated with the creation or use of knowledge and information to create value and solving problems in a creative way, doing by utilizing cultural heritage, cultural construct, and maintain cultural values​​, so could improve Indonesian image (Wijayanti and Rahayu, 2013). Creative industries becomes important because Indonesia has a various of natural and cultural resources. Batik industry prosecuted to produce innovative. Moreover, the ASEAN Economic Community (AEC) by 2015 , the craftsmen had to develop their work in order to compete with other ASEAN countries (Novianti, 2014). From the above, batik industry required to achieve a competitive advantage is to create a business model innovation and development. It is important for the company to identify the advantages and can compete with the competitors.

The concept of developing a business model for SMEs in Indonesia is actually already known. However, the business model for SMEs in Indonesia are not formalized or planned as in large companies (Source: Society for the Enhancement of Small Business/ PUPUK, 2012). Thus, the process of developing a business model on SMEs in Indonesia goes unconscious. The concept of business model happened from e - commerce practice. The presence of e-commerce business make practitioners totally change  old business model to a new and innovative business model.

Authors interested in research business model at small batik company. The reason of the authors are interested in researching the business model of small-scale batik company that were survived. The company are  Lembur Batik and Batik Anggraeni. They located at Cimahi, small city. Both of them need comparison with a similar business model batik that well-established in a big and the nearest city, Bandung. The company are  Batik Hasan and Batik Komar.

The results of the pre-survey showed that four researched batik company have a planned business model, there are still only a verbal business model (Batik Anggraeni Cimahi and Batik Hasan Bandung), and written business model (Lembur Batik Cimahi and Batik Komar Bandung). Everything is not fixed with particular theory of business model. So, for conclusion, I think business model SMEs in a big city is better planned than a small city.

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