Best Practice of Innovation among the Indonesian Craft Industry Cluster: Lesson Learnt from Indonesia

This paper clarifies to what extent the Indonesian craft industry best practices have embraced innovation practices based on the UNESCO Award Excellence for Handicrafts 2010. Direct face-to-face interviews were conducted in the tourism corridor of the Master Plan of Acceleration and Expansion in the Indonesia Economic Development 2011-2025. Typical crafts such as metal, natural fiber, and wood were investigated in UD KamasanBali (Bali province), Mawar art shop (West Nusa Tenggara province), and Adeshya (Daerah Istimewa Yogyakarta province). The investigation revealed that the role of the government and universities are very crucial to the best practices. The transfer of knowledge from government, universities, international agencies, corporations and others small-to medium-sized tourism enterprises have a significant impact to the industry cluster development. Further, management of exhibitions is found to be the most effective and efficient method for promoting business achievements.