Will Natural-dying Batik SMEs Compete in Asian Economic Community?

Abstract

Being claimed as playing vital role for economic development in Indonesia, Small and Medium Enterprise (SME) still has many challenges to be aware of. Some of them are the the free market of Asean Economic Community and the competitiveness of the SME compared to other similar products. One of the outstanding SMEs is Batik SME in Central Java. Recently, Batik has been becoming popular due to its natural dying used. As people have been discussing a lot about this kind of Batik, this research focuses on analysing its competitiveness to ensure whether the natural-dying Batik can compete with other similar products in this very competitive world, especiall ASEAN market. To understand their position of competitiveness, this study elaborated its profile so that it can be better known its existence to inform other related stakeholders. To find their competitiveness, the research collected primary data using primary and secondary data. Questionnaires distribution and interview to ten Batik makers were conducted. The the data were analysed using SWOT descriptive analysis and Internal and External (IE) Matrix after IFAS was used. From the data analysis, it was found that the natural dying Batik is very potential to develop by using certain strategis. Based on the formulation of alternative strategy using Internal and External (IE) Matrix, natural dying Batik SMEs in Semarang city is at the position of Quadrant 1. The strategies that are recommended to use are Strength-Opportunities (S-O). These strategies suggest natural dying Batik SMEs to take all available opportunities by expanding their market and developing the products.