Kotagede is a district located around ten kilometers southeastern part of Yogyakarta city center, Indonesia. It has been renowned for silver handicrafts industry for many decades. This particular industry has grown since the development of Kotagede as the capital of Mataram Kingdom in the 16th century. Silver handicrafts industry is considered as the most important economy sector in Kotagede because it absorbs many skilled labours in this field. Most of the silverware firms are micro and small enterprises (MSEs). However, those are proven to be more resilient in dealing with a crisis. In accordance to Sagan and Masik (2013), micro, small and medium companies have significant roles in the local economy. These types of enterprises …show more content…
HISTORY
Initially, silver handicrafts were products of Mataram Kingdom craftsmen to serve the palace’s needs of decorative and functional equipments. Those craftsmen live in a particular area in Kotagede based on their expertise, e.g.: goldsmiths and silversmiths live in Kemasan (“emas” means gold). When the capital of Mataram Kingdom moved from Kotagede, the craftsmen stayed there and kept their production. However, still had a strong relationship with the kingdom as the king became the main customer and protector of silver handicrafts (Daliman, 2000).
Western civilization brought by the Dutch enhanced the development of silver handicrafts industry in Kotagede. Value and appreciation toward silver handicrafts increased since the Dutch started to order European silver-made household equipments (e.g.: candle holder, eating utensils, and ashtray) with traditional Javanese patterns. From the time forward, silver handicrafts from Kotagede were sold not only to the Dutch and European people live in Indonesia, but also exported to Europe. This progress made the Dutch colonial government gave more attention to this industry by introducing new production techniques and designs to improve the quality of the products. Later in 1933 at the initiative of Governor Verohuur, “Stichting Beverdering van het Yogyakarta Kenst Ambacht” or “Yayasan Pakaryan Yogyakarta” was established. This organization built an art shop to sell the craftsmen products, and expanded access toward market. Some of its activities were joining a fair in Japan in 1937 and in America in 1938. The heyday of silver handicrafts industry during the period 1934-1939 made lots of businessmen chose silver handicrafts industry as their main business (Atmodimulyo,