Innovation, Local Wisdom and Value Creation in “Batik” Creative Industry

This study aims at describing the relationship of strategic innovation, local wisdom and value creation to the sustainability of the batik creative industry in Banyuwangi Regency, Indonesia. The information is obtained from the principals who are also the craftsmen of the batik. The data are obtained through indepth-interview. The data collected is reviewed by using a taxonomic method. Findings show that the creative industry of batik implements an incremental innovation strategy by optimizing the "Gajah Oling" icon which is part of the local wisdom of Using Tribe in order to create value for gaining profit and sustainability.