Conditions and the Existence of Cluster Development Business Batik Pekalongan City, Central Java, Indonesia

Cluster policy is the hope to achieve production efficiency so that the products will have a competitive edge. The existence of clusters has encouraged cooperative relationships among business actors are increasingly relying on broad market. Cluster also has become one of the drivers of local economic activities based on local advantages base that has a regional impact. Batik business activities in Pekalongan City have long been directed at the cluster concept by the local government, though not entirely. Pekalongan batik cluster, known as batik village. Study of batik clusters, which had been done in Pekalongan shows the efficiency in the production process of batik, among others, provision of raw materials for sure and guaranteed quality. However, still required the creation of a conducive business environment to realize cluster which is more efficient, dynamic, competitive, and can attract investors who are needed by small-scale batik industry. Ineffectiveness of batik industry in Pekalongan batik cluster it takes effort to improve the human resource capacity, because as a business, human resources is the activator and decision-makers in every activity. A business will grow well if the business operators have the motivation, as well as education and knowledge of business management and technology. Keywords: cluster, policy, economy, territory, batik busines