Studies in Business and Economics - 156 - Studies in Business and Economics BATIK INDUSTRY OF INDONESIA: THE RISE, FALL AND PROSPECTS GATUT Budiono University of Pancasila, Indonesia ARYANTO Vincent University of Soegiya Pranata, Indonesia Abstract: Batik clothes are a society national cultural heritage of Indonesia. In the last four decades has experienced profit, loss and legal intellectual property rights disputes in its business development. It has huge economic income contribution to economy development of Indonesia. The problem of lack of property rights to be implemented has made several losses of income and legal ownership. A better production technology combined together with high cultural philosophical value needs to be paid attention to maintain quality and its exclusivity. The government should be more serious to protect batik craft pattern designers in order ascertain legal ownership product and design through a formal laws confirmations. Batik needs a better and competitive business strategy to win future market globally. Keywords: product, cultural heritage, income, property rights, technology, business strategy, competitiveness, globalization. 1. Background of Informations The batik industry constitute of one of 14 classified creative industries in Indonesia featuring world famous specific Indonesian nation. Solo Batik Carnival program is an example had been conducted in the year 2009. Such program intend to boost Indonesian society to love their national product heritage, will be able to motivate business sector attracting world demand and investors to start their investment in Central Java Indonesia. The Central Java Batik specifically Batik of Solo riches with design and motive in heritage the royal palace culture or other arts and cultural