Lalu M. Furkan, Nobutaka Odake
(Nagoya Institute of Technology, Nagoya, 466-8555, Japan)

 

Abstract: This paper clarifies to what extent the Indonesian craft industry and the Indonesian craft industry best practices cluster have embraced innovation practices. A framework of survey for companies in the cluster where direct face-to-face interview was conducted and distributed into 98 companies and 3 best practices based on the UNESCO “Award Excellence for Handicraft” 2010 all over Indonesia. Direct face-to-face interviews were conducted into tourism corridors of the Master Plan of Acceleration and Expansion in the Indonesia Economic Development 2011-2025. Thus, typical crafts such as metal, natural fiber, and wood were investigated in UD KamasanBali (Bali province), Mawar art shop (West Nusa Tenggara province), and Adeshya (Daerah Istimewa Yogyakarta province). The investigation revealed that the role of the government and universities are very crucial to the Indonesian craft industry and the Indonesian craft industry best practices cluster. The transfer of knowledge from government, universities, international agencies, corporations and others small- to medium- sized tourism enterprises have a significant impact to the industrial cluster development. Further, management of exhibitions is found to be the most effective and efficient method for promoting business achievements.

 

Key words: the Indonesian craft industry; the Indonesian craft industry best practices; small-and
medium-sized tourism enterprises; craft industrial cluster; innovation

JEL code: M19