Utilization of Ulos as Creative Economic Potential for Communities

in Indonesia

Namira Ufrida Rahmi

, Widya Sari

, Winro Eko Maruis Tamba

, Tazari Putri Afrilyani

Economic Departement of Universotas Prima Indonesia, Medan North Sumatra, Indonesia

English Department of Universitas Prima Indonesia, Medan North Sumatra, Indonesia

Keywords: Cultural heritage; Economy Creative; Ulos.

Abstract: Indonesia has a lot of cultural heritage that it is decently called a multicultural country and cultural heritage

as a silent witness of local culture which is important in building awareness of local history and culture to be

national cultural identity. The existence of such cultural heritage has great potential in the development of

the creative economy. This research aims to the preservation of the value of ulos in strengthening the

cultural identity of Batak Toba societ the symbolic meaning of ulos in the implementation of the marriage.

This research focuses to have the efforts made by the community in preserving the value of civic culture and

to find out why the people of Batak Toba need to preserve the value of the civic culture. The researcher tried

to analyze whether the product quality policy was conducted by Weaving Factory. Then the production had

to be following the wishes of the community. Then it was interpreted that the company provided an

affordable price by the general public layer from the lower level to the upper level and consumer tastes were

satisfied. Those issues are influenced by the globalization era in which the development of lifestyle and

technology increases rapidly.

1 INTRODUCTION

The term of creative word is debateable by many

scholars and practitioners at economy field. Firstly,

creative term is one of new approaches to develop

economy sector in developed countries like

European Union countries, or even in Australia by

which creative economy was exposured in 1997

when cultural industries were as commercial

activities (Hidayat & Asmara, 2017). Creative

economy concept has emerged as means of focusing

attention on the role of creativity as a force in

contemporary economic life, stating that economic

and cultural development are not separate but can be

a part of a larger process of development . Not only

in advanced countries, this concept can be currently

applied in developing countries. This policy is a part

of economy policies offering and providing new

economy opportunities in those countries to boost

and to accelerate econmy growth into emerging

high-growth areas as by which it is the same as

economy growth in advanced countries

(UNDP,2013).

Samosir Ulos Weaving Craft Centre is a staple of

the Batak tribal handicrafts and is located in the

Samosir district which is also a place to buy and sell

Ulos weaving exhibitions. According to the Batak

concept, Ulos is an action infused with religious and

magical qualities. In Batak society belief, Ulos is

considered an object blessed by supernatural powers.

The design location is in Pangururan Sub-district,

LumbanSuhi-SuhiToruan Village, Samosir Regency,

North Sumatra Province, Indonesia. This sub-district

administratively consists of 9 Sub-Districts and 106

Villages. Ulos is a woven fabric, generally has a

width of about 50-150 cm and a length of 150-220

cm and is made of cotton fiber yarn. Ulos is clothing

in the form of cloth woven by Batak women with

various patterns and sells in some clothing market.

The craftsmen of Ulos in North Sumatera have

received support from the government and the

private sector, but not all them in the region get the

help well, because the government has limitations in

assisting 33 cities and districts in North Sumatra that

require attention in the development small and

medium business.

Rahmi, N., Sari, W., Maruis Tamba, W. and Afrilyani, T.

Utilization of Ulos as Creative Economic Potential for Communities in Indonesia.

DOI: 10.5220/0010330500003051

In Proceedings of the International Conference on Culture Heritage, Education, Sustainable Tourism, and Innovation Technologies (CESIT 2020), pages 515-521

ISBN: 978-989-758-501-2

515

Figure 1. Samosir Island

Research on the craftsmen Ulos done to find the

obstacles that are still faced by these craftsmen.

Based on observations and interviews, there are

differences in the priority of problems faced by

Ulos North Sumatra.

Figure 2. Ulos

Developing a creative economy is believed to

respond to the challenges of economic problems

such as low economic growth, unemployment,

poverty, and lack of industrial competitiveness. In

the era of prosperity and self-improvement,

creativity and innovation of creative workers to

create unique and interesting ideas is one thing that

needs attention. The behavior of creative workers in

realizing their creative works in the traditional

industries in Indonesia, especially North Sumatra

has not been well identified. Focusing on the the

production culture indicate how culture is

contigently operationalised through processes that

can be termed culturalisation (Richardson, 2019).

Creative economies do not rely heavily on natural

resources which means that their negative impact on

the climate is relatively weaker than in the case of

other industries (Fazlaig, 2019).

This is caused by the absence of a valid and

reliable instrument to measure and identify the

behavior of creative workers. Indonesia has a

diverse cultural heritage. It includes aspects of art,

beauty, social, empathy, ceremony, and others. It

signifies the high creativity of Indonesian people in

their specific skills and talents. Cultural diversity is

also supported by ethnic diversity in Indonesian

society. It shows that Indonesia has a very strong

supporting factor in developing a creative economy.

Ulos should be the basis for the development of

creative industries.

The uniqueness of each region must be

maintained. Therefore, local culture-based potentials

need to manifest themselves in the creative economy

program. This is where the creative economy can

begin. The creative industry developed is in line

with the potential resources available in the local

region. The creative economy is seen not only in the

economic context but also in the cultural dimension.

The results of this research conclude that Indonesia

has great potential to develop creative industries. r.

In the Markets/Users element, most orders come

from a neighbouring country and are for imitation

products to be sold at much lower prices compared

to the original brands this will be a threat to our own

culture if we do not maintain and promote it (Satari

& As’ad, 2018).

2 LITERATURE STUDY

The development of regional economic conditions

can be seen from the macroeconomic indicators as

well as the regional economy. The definition – and

associated measures of the economic contribution of

these sectors towards national GDP, employment

and exports – pushed towards their complete

separation from the arts and cultural field,

supposedly to be more socially and community

oriented (Comunian, 2020). This separation has

caused a rift in the understanding how creativity

works favouring two different business models (CIs

as private/for-profit industries and arts and culture as

made up by not for profit/public companies) rather

than an ecological complexity perspective

(Comunian, 2019) The economy of a region cannot

see the regional economy, the national economy of

the global economy. There are economic factors

that cannot be controlled by the regions, such as the

policies of the central regional government, the

monetary sector, or the real sector. Then the

CESIT 2020 - International Conference on Culture Heritage, Education, Sustainable Tourism, and Innovation Technologies

516

influence of the global economy, such as the effect

of fluctuating world oil prices, and foreign currency

exchange rates, and the last is the effect of the global

financial crisis which resulted in layoffs and

sluggish export markets.

Preparation of Integration Plan Documents and

the Medium Term Infrastructure Investment

Program (RPI2-JM) in the Field of Public Works /

Human Settlements, Samosir Regency 2015 – 2019

Regional economic performance indicators are

Gross Regional Domestic Product (PDRB), inflation

rate, contributions from each sector, investment

levels (including PMA and PMDN), exports, and

regional economic development indicators available

in the regions.

Gross Regional Domestic Product (GRDP) is a

measure of a region's macroeconomic performance.

To see the growth of real economic fluctuations

from year to year, it is presented through the GRDP

at a constant base price according to business fields

periodically. The GRDP of a region describes the

structure of the regional economy, the role of the

sectors, and their shifts based on GRDP based on or

based on constant prices.

The economic growth of Samosir Regency in

2012 as measured by the increase in Gross Regional

Domestic Product (PDRB) at 2000 constant prices

was 6.07%, an increase compared to 2011 which

was at 5.96%. Meanwhile, the estimated GRDP

growth in 2013 in Samosir Regency is 6.52% and

the estimated GDP growth in 2014 is 6.83%.

The dynamics of the Samosir Regency

macroeconomy during 2012 have shown a shift in

roles between sectors. This can be seen from the

comparison of the distribution of the proportion of

GRDP based on prices in 2011 and 2012. The

sectors that experienced an increase were the

electricity, gas, and water supply sector, the

construction sector, the trade sector, hotels and

restaurants, transportation and communications, the

financial sector, and the service sector. The sector

whose role is decreasing is the agricultural sector

and the construction sector and the sector which is

permanently moving is the mining and quarrying

sector.

Growth was achieved by the construction and

electricity, gas, and clean water sectors, namely

10.55%, followed by the financial, leasing, and

corporate services sector at 10.27%, the mining and

quarrying sector 8.59%, the transportation and

communication sector. 7.24%, the trade, hotel, and

restaurant sector 6.75%, the services sector 6.74%,

the agricultural sector 5.66%, and the manufacturing

sector 4.04%.

The prediction of changes in the structure of the

PDRB in Samosir Regency tends to shift from the

primary sector to the secondary sector and services,

although it is still dominated by the primary or

agricultural sector, which is then followed by the

service sector, trade sector, hotels, and restaurants.

The estimated change in GRDP from the agricultural

sector from 2013 amounted to 58.36% to 57.44% in

2014. Followed by the service sector at 26.68% in

2013 to 27.73% in 2014, while the trade, hotel, and

restaurant sectors in 2013 amounted to 9.78% to

9.69% in 2014.

1. The Marketing Mixture Each company that

produces goods or services faces difficulties

or problems in selling their products.

Therefore, a combination of factors affecting

marketing is needed. In reaching the

marketing target, normally, a company applies

a marketing theory called ‘marketing mix’.

2.1 Marketing Strate

Marketing strategy is an integrated and integrated

plan integral field that guides the activities

undertaken to achieve the marketing objectives of a

marketing. Market orientation emphasizes the

organizational culture that generates the behavior

neede to create superior value for customers.

Empirical research has found activities at companies

are engaged in new product development activities,

linked to their market orientation level (Wahyuni &

Made, 2020).

2.2 Understanding Product Quality

Every industrial company as a producer will always

try to produce products that can meet the needs of

the community or costumers, then the product must

be following the wishes or needs of the community.

Therefore, every company is not possible to meet all

the needs and desires of consumers as a whole. Also,

the company must first determine what products will

be produced, which if appropriate following the

ability of the company and consumer desires. The

product has an important meaning for the company

because, without the product, the company will not

be able to do anything from its business. Buyers will

buy the product if they feel fit because the product

must be tailored to the desire or the needs of the

buyer for successful product marketing. . The most

common operational definition posits quality as the

customer's perception of product and service

excellence. In today’s competitive environment,

quality is the key to an organization’s success and

Utilization of Ulos as Creative Economic Potential for Communities in Indonesia

517

survival. Intense global competition has highlighted

the increasing importance of quality (Hoe &

Mansori, 2018)

3 RESEARCH METHOD

This study was conducted in January 2020. In this

study, the population was the product of Ulos. This

research approach is descriptive qualitative. The

purpose of descriptive research is to produce an

accurate picture of a group, describe the mechanism

of a process or relationship, provide a complete

picture in either verbal or numerical form, present

basic information on a relationship, create a set of

categories and classify research subjects

(Sugiyono,2020). Meanwhile, the action research

classified, detailed and identified the strengths,

weaknesses, opportunities and threats (SWOT) of

the value chain of the creative economy ecosystem

in Samosir island. This research uses two methods

namely direct observation in field and literatures

review. Those methods are linear to how data was

collected to complete this study. Direct observation

was data which were derived from interview and

data collection in field, as while literatures review

was data which were derived from

researches/studies results, books, scientific journals

and articles, acts, and supporting documents.

3.1 Data Collection Technique

a. Interview

Conducted by a question and answer activity

directly to the respondent about the data

needed. We interview ulos weaver on the

Samosir island with a total of 10 weaver.

b. Documentation

This method was used to obtain data about

company or community profile, corporate

organizational structure, and other data. The

documentation method used in this research is

the result of interviewing researchers with

ulos weavers, image documentation during the

interview process and some literature rievew.

Figure 3: Documentation with ulos weaver.

4 RESULTS AND DISCUSSIONS

In this part of the analysis, the researcher tried to

analyze whether the product quality policy was

conducted by Weaving Factory. Then the production

had to be following the wishes of the community.

The purpose of doing product quality was to

increase sales. Then it was interpreted that the

company provided an affordable price by the general

public layer from the lower level to the upper level

and consumer tastes were satisfied.

4.1 Analysis and Discussion of Product

Quality in Increasing Sales

It had been described above that the purpose of the

role of product quality was to increase sales. In

reality, it was known that in fact, the market was

heterogeneous for one product. Profitable sales were

the goal of the marketing concept. This means that

profits were obtained from consumer satisfaction.

With this profit, the company could grow and

expand, have greater capability, could provide

agreater level of satisfaction to consumers, and

could strengthen the overall economic condition.

With the policy of improving the quality of

Weaving, the sales amount was greatly increased.

The number of sales each year changes, this was

caused by the level of purchasing power and

consumer consumption, as well as competition from

similar products that change every year. Given the

increasing competition while the seller's income was

decreasing then the seller could not control the price

because of the similarity of their products. Similarly,

weaving the factory of Toba Samosir District which

has a rival like other weaving plant businesses. So

by seeing this reality, the seller began to

acknowledge the added value of applying the policy

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518

of product diversity that directly affected the level of

sales volume of the product itself. if the quality of

the product is in accordance with consumer

expectations, then consumers can feel satisfied and

will return to buy or promote the products we sell to

others. thus the sales volume will increase, and with

the increase in sales volume it will increase our

income, so that maintaining the quality of the

products we sell is one of the focuses that must be

done by ulos weavers on the island of Samosir.

maintaining quality can be done by still using

traditional methods because by using traditional

techniques, the resulting fabric will be better and the

culture we want to preserve is maintained.

4.2 Analysis and Discussion of

Marketing Strategy

Based on the SWOT analysis following the analysis

of the marketing strategy of Ulos.

Table 1. Product Marketing Strategy Formulation

Internal

Factors

Eksternal

Factors

Strength (S)

1. Unique Citizen

Products

2. Many Product

Variations

3. Price is

appropriate and

relative

cheap

Weakness

(W)

limited

product

yield

Opportunies

(O)

1. Samosir

has a visit

high travel

2. Many

Tourism

Objects

3. Broad

market

Strength-

Opportunies

1. Integrated

promotion.

2. Direct

promotion

3. Online

promotion

Weakness

–

Opportuni

Establish

a Target

Market

2. Build

partnershi

Threats (T)

1. Products

from regions /

countries

other

2. Export

Regulations

Strength – Threat

1. Maintain

uniqueness

2. Increase insight

product

Weakness

– Threats

Creating a

service

excellence

Customer

rewar

Based on a SWOT analysis and the formulation

of the strategy above, it is possibleoutlined the

marketing strategy for creative economy products

for citizens learn as follows :

4.2.1 Strength – Opportunies (SO)

Is a strategy with use force to take advantage of

opportunities. Some strategic steps that can be taken

as follows:

1. Promoting print media.

Print media promotions include advertising in

magazines or newspaper. Promotion with print

media must pay attention to the target market

of the product to be sold.

2. Doing direct promotions.

Direct promotion can be done by spreading

brochures or direct sales. Brochure or

distribution

sales can be made in tourist atraction or

promotions to the store souvenirs, art shops

and souvenir centers scattered in Danau Toba.

Promotion in a direct way too done by

following exhibitions on time certain, such as

Exhibition Development in the order of the

day independence or festivals and a show or

tourist attraction annual, such as; Danau Toba

Festival.

3. Doing online promotions.

Promotion through online media such as

website, facebook, and Whatsapp (WA) or

social media

other. Using social media as above will make

it easier promotion and marketing.

Advantages online marketing is possible reach

a very wide market, and is not limited. Online

marketing not time bound, however requires

an understanding of technology

adequate. Online marketing can be done

between regions and between States, but

requires readiness of production capacity,

especially related product insights export and

language skills foreign to communication.

4.2.2 Weakness – Opportunies (WO)

Is a utilization strategy opportunities by coping

weakness is there. A few steps strategic that can be

done between other;

1. Establish a target market.

Despite the potential for the handicraft market.

Establish a target the market is the first step

must do in doing product marketing.

Understanding and election against the target

market will be creating efficiency and

effectiveness in product marketing, because

promotion and marketing can done in focus

and with clear target. When stipulation the

target market isn't done, then will create

Utilization of Ulos as Creative Economic Potential for Communities in Indonesia

519

confusion and in efficiency in doing

marketing.

2. Build marketing partnerships.

Partnership is very important for citizens who

just started a business craft, because partners

will helping citizens to increase insight

regarding design, product, packaging and

marketing promotion. Intertwine partnership is

not an easy one, because citizens generally do

not learn understand access to be partner with

entrepreneurs. To the role of college and

government is badly needed for make it easier

for residents to obtain access to partner

companies.

4.2.3 Weakness-Threat (WT)

Is a strategy that is stick around and try to minimize

weakness and avoiding threats. Strategic steps that

can be taken among others;

1. Creating service excellence.

Excellent service necessary strategic steps

residents do to guard existence and consumer

loyalty. In the early stages of service either

can be translated as

timeliness and maintain quality, because with

quality and precise time for the product to

arrive consumers, will grow consumer

confidence in producer. And trust is main

capital in business and capital efforts in

maintaining and maintain sustainability an

attempt.

2. Giving rewards for customers.

Rewards for consumers can be price discounts

or product bonuses. Bonuses and discounts

can be given to that consumer loyal to that

product produced by the manufacturer. Giving

bonus will maintain loyalty consumers to buy.

In addition giving bonuses, especially bonuses

new product form is very good for the

promotion of these products.

4.2.4 Strength – Threat (ST)

Is a strategy to use the power to overcome threats.

Strategic steps that can be taken as follows;

1. Maintain the uniqueness of the product.

Improve product quality and maintain product

uniqueness very important for citizens to

creating competitive advantage or competitive

advantage. Losing the uniqueness of the

product can be cause to turn away consumers

on a competing product has advantages and

uniqueness more. Excellence or uniqueness

the product is the core competence or core

competence who can make that product

produced is unique and has a competitive

advantage, so that maintain and improve the

uniqueness of the product is must to acquire

excellence in marketing

product.

2. Increase insight about product.

Product insights include design, raw materials

and technology. Insights about products especially

handicraft products are very important to be able to

penetrate the export market. Every importer country

or country export destinations have rules and set

different conditions for incoming goods his country.

Rules about dye handicraft products for the State

ASEAN is different from the rules in European

and American countries. America apply high

standards for coloring craft products. Craft items

using chemical dyes and color solvents containing

mercury or lead and resin are not permitted enter

America. Meanwhile in ASEAN countries no

coloring agents too much attention. Difference the

standards set demand citizens as producers for have

insight regarding marketing of products to other

countries. Ignorance of this may cause a loss high

for weavers.

5 CONCLUSIONS

From various information and discussion above, it

was concluded:

a. Marketing strategy with the implementation of

product quality policy was one of the added

value for Weaving Factory Toba Samosir in

face competition.

b. Analyzing a good market and applying a

product quality strategy that has different

characteristics thanthe previous product was

an attempt to attract interest and desire from

the company's product market.

c. Improve quality begins from customer needs,

the satisfaction of desire and so those who

should determine the quality of the product,

customer perception of quality is a

comprehensive assessment of the superiority

of a product. Need to improve service delivery

to consumers, such as maintaining

relationships.

d. Creative economy has begun to do as leading

component of economic growth, employment,

and innovation in advanced countries. At

conceptual stage, creativity and innovation are

absolutely closed to improve people income

through new creative economy strategy in a

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region. Recently, this concept is emulated in

developing countries through creative city

policy offering new economy source

opportunities to leapfrog into emerging high-

growth areas of world economy. It is

worthwhile to show that regional innovation

system is appropriate approach to answer how

creative cities run in several region. In

Indonesia, many local government initiates

creative cities using regional innovation

system to run creative economy as sustainable

program recently

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