Abstract:

The creative industry is one of the industry in Indonesia that has great potential to develop. Through the uniqueness of Indonesia's culture and its geographic uniqueness, Craft subsector in the creative Industry is one of the sub-sectors that have main role in economic growth of the creative industry. But along with the development of technology and market demand, actors in the craft industry is still facing some of problems in its business development. The purpose of this paper to analyze the problems and to find solutions for craft subsector in creative industry in Indonesia, through the system dynamics approach, this method will analyze what variables that play a role in the craft industry ecosystem through primary and secondary data which are collected from literature review, statistic data and in- depth interview. The paper also takes into account some scenarios which possibly can boost up the development of this industry, at the end of this paper, can be known that the best scenario is to lower the raw material price, the government may provide kind of subsidy for this industry through the raw material price.