Batik Semarang is one of Indonesia’s national heritage, which once had disappered in Japan colonialism era. In 2006, the city government of Semarang started to redevelop Batik Semarang as a regional identity of Semarang, by conducting a preservation program of Batik Semarang. This research’s objective is to identify and analyze the business performance of Batik craftsmen or batik maker in Semarang focused on the study on production, distribution, and market aspects. The fact arose is the decreasing number of Batik craftsmen year by year. The research was conducted by using the survey method on 17 batik craftsman in Semarang city. The Analysis of Batik Semarang’s Business Performance uses SCP approach which covers market structure analysis, conduct analysis, and performance analysis. The industry level market is moderately concentrated over the study indicated by the CR4 75% and HHI 1889. The result of market structure analysis suggest an oligopolistic market structure. Performance analysis involves the elements of price conduct, product conduct, and market conduct. Price conduct shows that 76 % of respondents act as the price maker. Product conduct shows that 70 % of respondents have chosen to do product diversification. Market conduct shows that 56 percent of producers sell the products directly to the consumers.. Performance analysis is viewed from the element of Batik business profitability, which shows the average R/C ratio of 1.72 and the average ROA of 0.51. This indicates that Batik Semarang business is still profitable.
Batik, has been known since 17th century, is one of Indonesian heritages that needs to be preserved. In 2009, Indonesian batik has received recognition as a world‟s heritage from United Nation‟s UNESCO. Batik is a supreme product every region and city in Central Java has, mostly managed by micro-scale enterprises. It is the same case with Batik Semarang. Batik Semarang, or more widely known as „Batik Semarangan‟, was once a triumph in Batik market, as well as Batik Solo and Batik Pekalongan. Nowadays, however, its triumph has been fading over time. According to Batik Semarang researcher, Yuliati (2009), Batik village before Japan colonialization was the centre of Batik in Semarang. However, the tradition of creating Batik in Semarang Batik Village was discountinued when Semarang became a warzone in the Japan colonialization and post- independence era. The fire that burned Batik village in Japan colonialization era has its role in the disappearance of Batik Semarang. Beside the lost of cultural art that the city of Semarang has, the opportunity of generating profit from the currently growing Batik business also occurs (Disperindag Kota Semarang, 2011).
In the beginning of 1980, the effort of redeveloping Batik village has been done, but has failed to sustain. In 2006, the local government of Semarang, by Dekarnas (Dewan Kerajinan Nasional) Semarang city, tried to revive Batik Semarangan that was short on batik crafstmen/batik maker. One of the efforts done by Deskranasda is to redevelop Batik village as the centre of Batik production, by organizing various trainings for the people of Batik village. The effort of the government in making the area of Batik village being in the cultural heritage area is reflected in local regulation (Perda) No. 14 Year 2011 about the city layout plan of Semarang.
When looking at the strategies done by Semarang city government and Dekranasda, both physical and non-physical, those still do not succeed in improving Batik village and in training the craftsmen. Because of that, the effort to revive Batik village in Semarang as a production centre that has been done since 2006, is not making any significant development (www.antaranews.com, April 26th 2012).
According to a research by Anisyah and Atmanti (2011), the problem faced by Batik Semarang craftsmen, among others, are minimum capital, limited human resource (from the aspect of formal education, knowledge, and skills), weak business network and the marketing ability, limited input materials for production, and the low number of productive craftsmen. The objective of reviving Batik village is actually not only for Batik Semarang to be one of national heritages, but also to bring back the glory and popularity of Batik village in Semarang by empowering Batik craftsmen to produce high-quality Batik. Therefore, the performance of Batik Semarang business needs to be increased.
The empowerment that has been done is still not conducted effectivelly. The empowerment is still focused on finding new craftsmen by Batik workshops and trainings. However, after the trainings have been conducted, the craftsmen still do not continue their business, and this caused low productivity. On the other hand, Batik Semarang craftsmen have limitations in accessing: market informations, market scope, business network, and strategic business locations. Most craftsmen only market the products around Semarang area, in not very strategic locations, so that even people in Semarang are still not very familiar with Batik Semarang. Looking from capital perspective, most of Batik Semarang craftsmen are also facing the same problem faced by many micro businesses. It can be shown by the small business scale that use their own capital, which is small in amount. The linkage between production and crafstmen‟s business performance that have not been done countinuously will cause inefficiency in production and poor distribution.
From the explanation above, it is necessary for a study of analysis of Batik Semarang business performance to be done, in order to determine some kind of policy to increase the performance of Batik Semarang craftsmen, so that the welfare of Batik Semarang craftsmen can be increased and the existence of Batik Semarang can be in the same level with other kinds of Batik that have already went popular in Indonesia.
2. MATERIAL AND METHOD
Batik is a process of painting texts or ornaments in any media using wax as color-barrier instrument (Prasetyo, 2010). In the making batik, the wax is applied to fabric to prevent the color absorption during the coloring process. Nevertheless, common people know Batik as a kind of fabric that has some unique traditional pattern. In other words, common people know Batik as a pattern, not as a technique of fabric painting. According to Yudoseputro (2000), Batik is a fabric drawing made using wax as a media and a cover of the fabric. Another view stated that Batik is a cloth with drawings, made by special technique of drawing by wax on the cloth and the processed in a particular method (Wulandari, 2011).
Batik industry in Indonesia is mostly consisted of small and medium scale businesses. The existence of these small and medium businesses has already become a support and hope of most of Indonesian people to reduce poverty, unemployment, and income distribution gap. Therefore, it is the same case with the industry of Batik in Semarang.
The definition of UKM (small and medium enterprises according to Badan Pusat Statistik (BPS), or Indonesian statistics organization, is based on the quantity of human labors. Small scale enterprise is a business entity that hires 5-19 workers, while medium scale business is a business entity that hires 20-99 workers. The Indonesian Ministry of Cooperatives and Small and Medium Enterprises stated a different definition of this, as well as according to indonesian Law No. 20 Year 2008. Those definitions are shown in Table 1.
3. RESULT AND DISCUSSION
The analysis of Batik Semarang business performance in this research discuss the aspects of production/business, distribution, and market absorbtion. According to SCP (Structure-Conduct- Performance) approach, the analysis has the sequence of: (1) analyzing market structure through the quantity of distribution and supply chains; (2) analyzing conduct through the components of price conduct and production strategy; and (3) measuring performance through profitability.