1 Abstract—Batik industry has become one of the leading industries in the economy of Indonesia. Since the recognition of batik as one of the cultural wealth and national identity of Indonesia by UNESCO, batik production keeps increasing as a result of increasing demand for batik, whether from domestic or abroad consumers. One of the rapid development batik industries locations in Indonesia is in Lawean Village, Solo, Central Java, Indonesia. Batik industry in Lawean generally uses putting-out system where batik workers work in their own houses. With the implementation of this system, therefore employers do not have to prepare Environmental Impact Analysis (EIA), social security for workers, overtime pay, work space, and production devices. The data used to explain this reality is primary data from qualitative research with in-depth interview data collection technique. Information determination used in this syudy is purposive technique. The theory used in this study is phenomenology theory by Alfred Schutz. Qualitative method and phenomenology theory used in this study are to explain in-depth social reality of batik workers exploitation by batik employers with the implementation of putting-out system in batik home industry in Lawean, Central Java. The implementation of putting-out system causes many problems, starting from environmental pollution, the loss of workers’ social rights, and even exploitation of workers by batik employers. Index Terms—Exploitation, putting-out system, batik home industry. I. INTRODUCTION AND PURPOSE One of the efforts undertaken by the government of Indonesia to increase the income of lower class communities is to promote the empowerment of small and medium enterprises (SMEs). This SMEs empowerment programs have spawned a wide range of home industries that are considered capable to solve poverty problems that have been long experienced by Indonesian communities [1]. There are currently more than 30 million small and medium enterprises thrive and become the backbone for Indonesian communities economy [2]. The one of rapidly growing SMEs in Indonesia is batik industry. Since the recognition of batik as one of the cultural wealth and identity of Indonesia by UNESCO, batik demand has increased rapidly. According to the report from Republic of Indonesia Ministry of Home Affairs, batik export value has 1 Manuscript received March 10, 2017; revised May 12, 2017. The authors are with Universitas Gadjah Mada, Indonesia (e-mail: habibhada@ymail.com, aylakarina90@gmail.com, rizkaalusrah@gmail.com, m.fatkhullah@mail.ugm.ac.id, kanita.khoirunnisa@yahoo.co.id). significantly increased . In 2010 the export value reached USD 22.3 million, then in 2011 reached USD 69 million, and in 2012 reached USD 278 million [3]. While the latest data in 2015 reported that batik export value has reached USD 3.1 billion [4]. Thus, it is not surprising if the government sets batik industry as the most reliable SME and important strategic industry of Indonesia. The progress of batik industry SME sector, in addition of being a solution to solve the poverty problem, also creates a variety of new problems. Environmental pollution is a common problem caused by the use of lag and inefficient technology as well as the use of non eco-friendly materials [5]. Besides the environmental pollution, batik industry also spawns a wide range of social problems that should be considered by the government. One social problem that becomes study focus of this paper is the problem of rights exploitation and deprivation of workers in batik industry SME sector. The expectation of this sudy is that t. II. THEORETICAL FRAMEWORK In general, the approach and the theory used in this study are the phenomenology approach and the theory by Alfred Schutz. Thes approach enables the researcher to understand the social reality in the form of exploitation and injustice experienced by workers in batik home industry from their own perspective. With the subjective understanding that comes from informants, this study might result a deep understanding about the condition or the actual reality experienced by batik home industry workers. In addition, this study also uses the concept of Karl Marx’s theory such as exploitation and injustice in the form of oppression. Marx explained that exploitation occurred in industrial sector is caused by the differences in production devices mastery. The bourgeoisie who own the production devices will exploit and oppress the proletariat such as labor or workers who do not have production factor [6]. But apparently that theory is not entirely relevant to be used in this study. Evidently it can be found in the field that the production devices are owned by workers at batik home industry, while employers at the top structure do not have production devices that are necessary to produce batik clothing. Employers have exploitation devices in the form of access or ability to sell batik products to abroad (by exporting) or domestic consumers. Muhammad Alhada Fuadilah Habib, Ayla Karina Budita, Cut Rizka Al Usrah, and Mukhammad Fatkhullah, Kanita Khoirun Nisa Exploitation Behind the Growth of Batik Home Industry in Lawean, Solo, Central Java International Journal of Social Science and Humanity, Vol. 7, No. 9, September 2017 618 doi: 10.18178/ijssh.2017.7.9.895