Batik Business Ecosystem

With the legalization of batik originating from Indonesia as a world cultural heritage (world heritage), the category "Humanitarian Heritage for Oral and Non-material Culture (Masterpieces of the Oral and Intangible Heritage of Humanity), then this is a golden bridge for the Indonesian batik industry to succeed in the international market. But stepping on this golden bridge is not without obstacles, because problems at the national and international levels also confront the Indonesian batik industry, problems at the national level are as follows:

1. The availability of batik equipment. Of the 19 batik centers in Indonesia, there are only six canting-making businesses, 31 batik-stamp businesses, and 10 night-mix businesses. In fact, the total number of batik businesses spread across Java is 15,293 units (Kompas, October 2011)

2. Fluctuations in the price of cloth used as a medium of batik. Mori cloth prices consisting of two types namely primisima mori and prime mori recorded a significant increase due to an increase in cotton prices since 2009

3. The raw material of batik is gondorukem. The producer of raw materials is less interested in allocating good quality gondorukem for domestic needs. Perum Perhutani tends to export good quality gondorukem abroad

4. management ability, technique of fine dipping or batik staining that has not been standardized

5. Imaging batik on potential consumers becomes a determinant of the penetration of these products in the domestic market

6. Regeneration of batik artisans and education of batik craftsmen who do not understand the potential of batik as a business, as evidenced in 2011 with only one special vocational batik in Indonesia

7. The entry of batik-patterned textiles from China

The international level problem faced is world economic conditions that affect the purchasing power of consumers in export destinations for Indonesian batik, although the economic crisis in the United States and Europe has not significantly affected Indonesian batik exports, because Indonesian batik is mostly exported to the Middle East and Malaysia whereas exports to the United States are rare, but the economic crisis on the two continents must remain vigilant.

The government and the batik industry are not without effort in resolving the above problems, a number of solutions have been carried out including:

1. Batik blue print 2011 (Batik blue print 2011) as a foundation in formulating short, medium, and long-term policies with clear directions, targets and performance targets regarding populist-based creative economic development. One part of which discusses action plans, in Short-term programs that will carry out a number of quick wins programs include improving the batik standardization system, making batik labeling policies, composing batik communication strategies as cultural heritage and economic drivers, mapping the batik keraton decoration, and batik book inventory

2. The National Batik Conservation and Development Blueprint for 2012-2015 has established three national batik strategic roles, namely as the driving force of the country's economy, cultural heritage and a tool of diplomacy between nations. The document compiled by the cross country agency team contains a development framework, performance indicators, road maps, development action plans and national batik achievement targets.

3. Various government policies to support the batik industry such as incentives in the form of price discounts for the purchase of machinery for production, increasing access to capital for the batik industry, the establishment of a Center for Crafts and Batik, promoting batik domestically and abroad and many others

4. The number of batik vocational high schools (SMK) will be increased from one school in 2011 to four schools in the 2012-2015 period, and to 20 schools in the period 2021-2025

Based on the brief review above related to the problems and overview of solutions in the Indonesian batik industry, it shows that the Indonesian batik industry has so far been running in silos or compartments, traditional and modern batik makers are running independently, even though there is cooperation between the two only limited only suppliers or intermediaries. In terms of government policy, although it has moved quite significantly, it still does not look evenly distributed.

To improve the competitiveness of the Indonesian batik industry, we must think holistically, one of the approaches is through understanding the business ecosystem of the batik industry itself. Business ecosytem means "A business ecosystem describes the structure and behavior of a network of high-tech organizations that share a key technological platform and the ways individual firms can flourish in such an environment" (James F Moore) or can be freely translated as a network, where each element interacts with one another and shares resources with the aim of developing the network or the environment itself. Here is a picture that explains what elements are there and their activities in a business ecosystem

  

Next is the mapping of Indonesian batik industry in the concept of business ecosystem

1. Core business

a. Core contributors

i. Batik artisans are in the form of small and medium businesses (UKM) or small and medium industries (IKM) producing traditional and creative batik

ii. Business groups (Danar Hadi batik, Keris batik, Semar batik, Alleira, batik), producing traditional batik, industrial batik and creative batik

b. Distribution channels

i. Offline:

· Batik shop outlets:

ü Shopping or shopping center (Mall, Trade Center. Wholesale center and others)

ü Batik shop / Showroom / Boutique Batik

·   Method:

ü Direct marketing

ü Agent

ü Retailer

üWholesale (wholeseller)

Dropshipping

i.Exhibitions at home and abroad

ii. Online / Batik online:

· Website (www.berbatik.com)

· Socialmedia (Example: @berbatikcom twitter account and batik fanpage on facebook http://www.facebook.com/berbatikcom

c. Direct suppliers

i. Suppliers of basic materials such as:

· Batik fabrics / media: Mori cloth (Cotton, silk, rayon), silk cloth, chiffon and ATBM silk.

· Candles (barrier material): Paraffin, Kote (beeswax), Gondorukem, "Cat eye" resin, Microwax, Gladhangan wax (night) and Coconut oil or animal fat

· Dyes: Natural dyes (Leaves, Bark, wood staples, tree roots or bulbs) and artificial / chemical dyes (German (Hoechst), English (ICI), Swiss (CIBA), French (Francolor), American (Du Point) , and Italy (ACNA).

· Medicines / basic ingredients for washing batik namely "lerak"

ii. Supplier of production equipment such as:

· Handwritten batik: Canting as a means of forming motifs (Canting cheeks, clams and walls), Gawangan (a place to attach cloth), pans and small stoves to heat candles.

· Batik stamp: Almost the same as written batik only, canting was replaced by a batik pattern stamp

· Batik screen printing: Plangkan, screen printing tables, shelves, clear plastic: functions to make the surface of the screen printing table clean and easy to clean, plastic plastic: functions as a coating, sponges / foam: functions as a stabilizer or counterweight and so that the table is flexible, plywood: functions so that the table Flat screen printing, Wood table: functions as the main screen printing screen construction

· Batik printing: almost the same as screen printing batik, the only difference is that the process is not due to using a batik printing machine

iii. Batik sales media suppliers:

· Offline

ü Building management of the owner of the sales location (Mall, Trade center, wholesale center, etc.)

ü Advertising agency (Marketing communication agencies)

ü Sales partners (agents, dropshipping, retailers and wholesalers)

ü Batik business associations and government institutions (trade shows, exhibitions, state diplomacy media)

·   On line

ü Internet service provider (internet access)

Web hosting

ü Web design

ü Search engine optimization (SEO) service

iv. Product packaging supplier:
· The business of making packaging (packaging) products such as, boxes, paper backs and many others

v. Goods or logistics delivery suppliers:

· Domestic and international logistics and forwarding services

· Domestic and international container companies

vi. Human resource supplier (batik craftsman)

· Batik-based vocational school

· Batik centers or specialized training institutions

2. Extended enterprise

a. Direct customers

i. End user (end user): is an organization or individual that buys batik for its own use, not for sale or business to consumer / B2C

ii. Reseller: is a business unit or individual that buys batik to be resold to end users, the term business to business to consumer / B2B2C

b. Suppliers of my suppliers

i. Basic materials supplier:

· Fabrics: cotton farmers, craftsman of woven cloth, textile industry

· Candles or night (Obstructions):

ü Gondorukem: Perum Perhutani

Paraffin and Microwax: Chemical industry

Dye:

Natural dyes: Farmers, planters of natural dyes (Jackfruit, teak, coconut, areca nut and others)

Artificial coloring: Chemical industry for paint basic material

The medicine / basic ingredients for washing batik are "lerak"

Lerak industrial plant farmers

ii. Supplier of production equipment such as:

· Batik: Copper industry (for making nyamplung and cucuk) and wood industry (for canting handles)

· Batik stamp: Copper industry (for canting cap from tambaga)

· And wood industry (for wood canting stamp)

From the mapping above it can be seen that the business ecosystem of batik is very complex, so it is appropriate that the management must be done in the form of a business ecosystem. If not managed in the form of an ecosystem, the management will run partially and the results will not be optimal. After mapping the ecosystem of the batik industry, then to see the interactions and gaps in the batik industry, mapping is carried out in the form of a value chain industry

1. Inbound (supply of raw materials)

a. Direct suppliers

i. Suppliers of basic materials such as: batik fabrics / media, waxes, dyes, batik washes

ii. Supplier of production equipment such as batik canteen, canting cap, screen printing equipment, and mensin printing (batik printing)

Most of batik raw materials are obtained from imports, about 90 percent of batik raw materials such as cotton and silk fabrics are still imported, while the raw materials in the form of gondorukem are actually exported to several countries.

2. Operations (production process)

a. Basically the same batik production process, the difference is the method or method of pouring a variety of batik motifs namely written batik, printed batik, batik screen printing and batik printing

b. After pouring the batik motif on the batik media (ATBM and silk silk cloth), then it is done a wall, medicine, draining, washing

During this time, the process of making batik often uses synthetic dyes, but lately it is known, the chemicals contained in synthetic dyes can actually have a negative impact on health. These chemicals are carcinogenic, so they have the potential to cause cancer.

To solve this problem, through cooperation between the European Commission and the Indonesian-German Chamber of Commerce poured funds of € 2.3 million or equivalent to Rp26 billion, for the Clean Batik Initiative or Eco-friendly batik project

3. Marketing & Sales (Marketing and sales process)

a. Marketing

i. Strategy (Segmentation, targeting and positioning): Only large scale batik entrepreneurs who already have a deep understanding related to understanding customer needs, while SME and SME class entrepreneurs still tend to follow the prevailing trends, without having in-depth safeguards about customers

ii. Tactic (differentiation, marketing mix, sales): For SME and SME batik entrepreneurs, batik is only a commodity without a written and explicit uniqe selling proposition. In contrast to large-scale entrepreneurs who have been able to provide strong uniqe selling propositions such as those owned by Berbatik companies that are able to define up to the core values ​​of their business

iii. Value (Brand, service, process): Awareness of the use of brands as a medium of communicating value to customers is also still dominated by large-scale entrepreneurs such as Berbatik who have far thought about the meaning of a brand to realize it in the form of processes in delivering services

4. Customer service (The process of customer service / after sales): By relying on the web media www.berbatik.com and social media twitter @berbatikcom and batik fanpage, Berbatik establishes interactions with customers both for ordering and after sales service. But for UKM and IKM, the nature is still hit n run, it is not optimal in after sales service

1. Firm infrastructure: For the UKM and UKM level, the organizational structure is still very simple and not complex, because the activities being managed are also simple, but unlike the case with large scale batik businesses, they already have a clear organizational structure.

2. Human resources management: Relying on media transfer of hereditary knowledge, training in training centers and batik vocational schools, there is no higher education level that specializes in the batik industry, resulting in inhibited regeneration of batik craftsmen

3. Technology: The application of ICT is quite well marked by the use of internet media to sell and print digital print to mass produce batik. The internet is still not optimally utilized, the tendency is still used for selling facilities, not yet working on the interactivity aspect which is actually an advantage of the internet, this is due to the gap in understanding and mastery of the internet at the level of SMEs and UKM

4. Procurement: Access to available resources is still difficult for SME and SME level entrepreneurs who continue to be undermined by high raw material prices and some raw materials imported from abroad, but for large scale entrepreneurs this is not too problematic due to capital adequacy the brands have. Capital issues are still a scourge for SMEs and SMEs related to access to resources, this of course has an impact on the productivity and competitiveness of Indonesian batik

From the description of the value chain, it can be seen that the gap in the batik industry is evenly distributed in almost all parts of the batik industry's value chain, so it is only natural that only a few businesses are able to survive, especially large capital entrepreneurs, while SMEs and IKM certainly still need a lot of help from the government especially for the main activities of the batik industry

The policy of the government to support the batik industry in the form of standardization of Indonesian batik as stipulated in the blueprint of the batik industry, is the right step in order to improve competitiveness so that Indonesian batik is expected to dominate the regional and international batik markets, so that by looking at the dynamics and conditions of the batik industry in Indonesia it can it was concluded that the level of batik's business ecosystem was at an expansion stage 

Seeing the continued growth of revenue from the batik industry and the increasing number of competitors that have emerged, this indicates that the Indonesian batik industry is at a growth stage

Taking into account, the complexity of the ecosystem, the stage of the ecosystem, the life cycle of the industry, now the right role for the Indonesian batik ecosystem is as a Keystone by implementing strategies according to its role, meaning that the Indonesian batik industry (all Indonesian batik industry stakeholders) must be able to capitalize or utilize all elements of the ecosystem integrated batik in order to be able to create innovative products

                   

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