Natural Pattern and Durability of Local

Wisdom-Based Creative Industries in

Indonesia (Case In Surakarta, Central
Java)
MUHAMMAD SHOLAHUDDIN,S.E.,M.Si.
PROF. DR. H.M. WAHYUDDIN, M.S.
Faculty of Economics and Business, Muhammadiyah University of
Surakarta
Jl. A. Yani PO box 1 Pabelan Kartasura, Surakarta,Jawa Tengah, 57162
INDONESIA
E-mail: muhammad.sholahuddin@ums.ac.id

Introduction

SMEs and Indonesian Economy

able to face global competition

able to absorb the labor force in large numbers

the creative economy of SMEs are expected to

compete in the global era
The study of entrepreneurship is relatively small
number (Oort and Stam, 2006) especially in creative
economy including in the city of Surakarta.

Aims of the Research

This study would describe potential mapping of local

wisdom-based creative economy in the city of
Surakarta.
To answer these problems, the researchers would
reviewed the theoretical base on entrepreneurship in
advance

Literature Review
Creative Industry

UK DCMS Task Force 1998 : Creative Industries

as those industries which have their origin in
individual creativity, skill and talent, and which have
a potential for wealth and job creation through the
generation and exploitation of intellectual property
and content.
Creative Economy is economic activity which input
and output are idea (Howkins in Nenny, 2008).

Entrepreneurship & unemployment

Audretsch and Thurik ( 2000) proved that a growing

number of entrepreneurs were able to reduce the
number of unemployed
Carree (2002 entrepreneurship has nothing to do
with unemployment .
This difference is a challenge for confirmation of
actuality and localities especially for domestic cases.

Entrepreneurship and Economic

Growth

Christmas (2009 ) entrepreneurship is a significant

and positive effect on economic growth. These
results are consistent with Schumpeter's theory
(1934 )
Hu and Wang (2008 ) economic growth is not only
dependent on capital investment but also influenced
innovation and new ways of producing which of
course obtained of new entrepreneurs

Methodology

explanatory research
Purposive sampling method are random sampling
based on (1) the criteria of creative industry SMEs
(2) Their activities involving as many as 30 creative
industry SME entrepreneurs (3) Their productions
are in one of five districts (Serengan, Laweyan,
Banjarsari, Jebres, Pasar Kliwon).

Configuring SMEs respondent

aspects of the
observations
Business Scale

Compotition

Percentage

Micro
Small
Medium

34%
44%
22%
22,4 years

The Average age of

MSMEs
Marketing
Local Orientation
Coverage
Regional Orientation
National Orientation
Export Orientation
Competition (cluster competition, domestic
Obstacles
competition and foreign competition), Smuggling,
Economy policty, Price policy, Mastery of technology,
Capital, Managerial
Financing of
Banking Access
Government
Not yet Optimal, not yet receive guidance from the
fostering
authorities
Product Cycle
Introduction
phase
development
phase
Mature
stage
decline stage

22%
42%
12%
24%

58%
55%
2%
54%
34%
10%

The Distribution of Business Type PerDistrict

Products
Tofu, tempe
Shoes, Sandals, Bag
Cartoon of shuttle cock
Rambak from skin
Birdcage
Printing & art digital
Antiques
Handycraft
Alumunium
Shuttle cock
Bamboo art
Blankon
Music Instrument
Percussion
Bamboo brait
Gebyok carving
Batik
Frame
Cooking utilites
Bambu basket
metals and badges
Carving mirror
Jamu
Handycraft of stick
Wood toys
Batok (coconut) craft
Wayang from skin
wrought iron
Gamelan
steel and aluminum
Painting clothes
Bronze Gong

Jebres

Banjarsari

Serengan

Ps Kliwon

Laweyan

Durability

Average durability: 22.4 years .

Central Bank of Indonesia (2006): 22 years.
Durability in the crisis time (Djaman, 2006):

4 % who discontinued businesses ;

64 % unchanged turnover ;
31 % experienced a decrease in turnover and
1 % are growing

Banking Loanable

Bankable : 58 %, 14% Islamic banking

Central Bank of Indonesia (2006) : 48 %

Employment
40%
35%
30%
25%
20%
15%
10%
5%
0%

38%
33%
29%

<5 employee

5-10 employee

>10 employee

Central Bank of Indonesia (2009) :

Number of business units : 51,3 million
Capacity of employment absorbed : 90,9 million workers

Thank you