MODEL PENETRASI PASAR "ALTERNATIF" (FATR TRADE}: Kasus Kerajinan Berbasis Sistem "Putting-out" di Klaster Sragen, Surakarta, Klatendon So/atigo

Abstract

Research findings show that artisans' role in  the 'putting-out' system is obviously substantial in supporting  the batik and handicraft industry to survive the multi-dimensional crises in Indonesia, but ironically they are marginalised in the system. While the 'free trade' has caused  disadvantages to micro-zsmall-scale   producers, complex internal problems are also found, leading  to marginalisation and poor performance in the bargaining power, production and productivity, business continuity, gender issues, and environmental  issues. There are also problems concerning labour forces as home-workersorenot recognised nor protected by the Labour Law, and also limited knowledge on innovationand  technology.  The goal of action research  is to promote the bargaining position of the producers in  the business network through the fair trade. As a pilot project. this research focuses on finding  access and ways to penetrate  the alternative  market  (Fair  Tracie) hy  addressing  three  aspects,  namely (1) reorganisation of the production system and the marketing: (2) transfer of innovation in the 'alternative'  market  product  development;   (3)  implementation   of  the  internet-based infmmationsystem  conforming to the fair trade principles, The approach ofthe research treats the system as production clusters stressing on group dynamics.and   the method is participatory action research withgender perspectives. The outcomes of the first (of two) stage show that ( l) the method needs to integrate   marketing with gender-perspective empowerment aspects: (2) institutional set-up  is  to be  done on  two  levels of different  functions:  production and marketing; (3)  producers' capacity building is required through institutionalisation of organisation basics.  group work.  entrepreneurship. and fair trade values; (4) fair-trade• oriented innovation  and technology transfer is needed in the product development and market information system; (5)  network development applying fair trade principles is required to build common strength; (6) policies are 10 be made for the empowerment and protection o flhe home-working artisans.