Effects of Clustering Activities on the Livelihood Assets Improvements in Batik Pungsari Cluster of Sragen, Indonesia

Abstract

Along with the development of creative industries, especially batik, we need to realize that a cluster needs to look at the combined functions of local economic activities with the social community character so not only focus on increasing local revenue. Batik industry becomes a primadonna for Sragen in improving the economy since 1999. This research aims to determine the value of household livelihood assets of batik cluster activity. Batik Cluster Pungsari still in the early growth stage but has been able to sustain more than 500 business actors. This research found that higher levels of income will cause a higher value of human assets, physical assets, and financial assets except for social assets. In accordance with the Livelihood Approach, households with low incomes or high vulnerability levels still have non-material assets, namely; health, employment, knowledge, and skills. It shows that the existence of batik has a strong influence on livelihood quality improvement