Journal of Economics and Economic Education Research (Print ISSN: 1533-3590; Online ISSN: 1533-3604)

Research Article: 2020 Vol: 21 Issue: 1

Registration of Weaving Copyrights and their Effects on Increasing Sales Turnover and Rising Selling Prices towards Increased Competitiveness of Indonesian Weaving Crafts in Global Marketing

Mamik Indaryani, Muria Kudus University

Sulistyowati, Suparnyo, Muria Kudus University

Kertati Sumekar, Muria Kudus University

Sri Mulyani, Muria Kudus University

Budi Gunawan, Muria Kudus University

Abstract

This article explains about efforts to protect copyrighted weaving motifs by registering Intellectual Property Rights (IPR) weaving motifs with the aim of ultimately increasing the competitiveness of weaving in the Global market. The focus of the activity, namely: increasing knowledge and awareness about the importance of protecting the copyrighted work of motifs, the ability of craftsmen resources in doing innovation both in terms of raw materials, motifs and marketing. The method used is a value chain. This approach systematically calculates and maps problems in all stages starting from raw materials, production and marketing processes as well as analysis of various linkages and information flow along the chain. The development strategy based on mapping the potential of human resources and superior commodities possessed, then synergize with the Regional Government and the Central Government, related Departments and Agencies synergistically and coordinative. The results of the study concluded that there is still a lack of ability of the craftsmens human resources technically and knowledge of the meaning of IPR protection for the work created for the benefit of business and business sustainability. On the other hand, consumers lack awareness to give credit to woven works by making IPR one of the considerations in making choices other than preferences for motives, prices and other factors. This article based on the results of a leading applied research university in 2019 funded by the Ministry of Research, Technology and Higher Education (Kemenristek Dikti) through a DRPM grant.

Keywords

Weaving, Copyright, Global Marketing.

Introduction

Weaving craftsmen empowerment, in the midst of globalization and high competition, the craftsmen must be able to face global challenges, such as understanding the importance of registration of Intellectual Property Rights in order to achieve increased sales turnover and rising sales prices, increase product innovation, increase the ability of human resources and technology, as well as expand marketing areas from local to national and increase towards global marketing. This effort must continue, in order to increase the selling value of the weaving craftsmen, especially in order to compete with foreign products that are increasingly flooding the textile market in Indonesia. (Sudaryanto, 2013). The awareness of weaving copyright registration by craftsmen is indeed still low, this is due to the lack of understanding of the importance of copyright registration, in order to protect the innovative work of weaving from other parties who will commit plagiarism. In the era of the industrial revolution 4.0 whose demands are all using digital technology and this opens up huge and easy opportunities for others to imitate the motives and innovations of woven products. Jepara Regency (Indonesia) has Troso Weaving Craftsmen who until now still need to continue to get assistance from the Central Government, Regional Governments and from the Directorate of Higher Education. Potential products of troso weaving craftsmen in Jepara Regency (Indonesia), do not fully understand the importance of registration of Weaving Copyrights, as an Intellectual Property Right. Copyright weaving, as an Intellectual Property Right will have a large and significant influence on the increase in sales turnover and the increase in sales prices, if the products registered with copyright truly have a philosophical value, exclusive and specific. Weakness of the craftsmen in the weaving sector is the limited human resources, both as workers to process and produce products as well as low competitiveness due to limited human resource competence and lack of financial capital. Such conditions will not be able to be resolved and handled alone by Craftsmen. The Central and Regional Governments as well as Higher Education Institutions must synergize with each other to compactly strengthen Craftsmen to be able to compete both domestically and abroad in order to penetrate world trade (Abdullah et al., 2002). One way to penetrate the world market is by exhibiting products on line or by conventional means following the weaving product exhibition directly. In addition to the above methods, to penetrate the world trade market is to seize world consumer confidence. Most of the global market consumers have an interest in buying products that have been registered with copyright, because world market consumers have confidence that the products that have been registered with copyright have specificity and privileges. It also will have a high philosophical value, more specific and exclusive designs, so they feel they have something different and unique. Craftsmen in the weaving sector, especially in Kudus Regency (Indonesia) have an important and strategic role, especially in terms of the number of business units which until 2018 reached 11,542 units with an absorption capacity of at least 69% of the available workforce. Although the numbers are dominant and quite large, the increasing role of the regional economy is relatively slow. This slowdown can occur due to low sales turnover and small profit margins, which are caused by low sales prices as well. Through this research, it is expected that craftsmen in the weaving sector have adequate understanding and awareness to register their copyright, in order to increase sales turnover and selling prices. Therefore this sector must be motivated and facilitated to be able to optimize existing resources, so that they have added value and are highly competitive so that they can play a role in economic growth and acceleration going forward.

Research Methods

Approach

The approach used is a value chain. The value chain is a series of productive processes ranging from product input providers, production, marketing and distribution to end consumers (Ronny, 1983). This approach systematically takes into account all stages starting from the production process and also analysis of the various interrelationships and information flows along the chain (Lexy, 2006).

Strategy

The development strategy considers revising on potential of superior commodity resources owned. Encourage the enhancement of the role of Higher Education, Local Government, Service and Institutions, private companies, BUMD, BUMN and the community to build a synergistic economy.

Target

The target of developing this UMKM cluster is troso weaving craftsmen in Jepara Regency, Indonesia. Jepara Regency Manpower, Industry, Cooperative, Small and Medium Enterprises Agency as a Facilitator Team for the development of UMKM. History of Jepara Troso Weaving was originally known since the year 800 M that is the age of the Islamic Mataram Kingdom. At that time Troso weaving was used to complement the needs of clothing. At that time, Troso weaving started from gedog weaving then developed into ikat weaving. Troso weaving is a connective fabric woven from strands of weft or warp threads that were previously tied and dipped in natural dyes. The loom used is a loom not a machine (Wikipedia: 2018). The first people in Troso Jepara (Indonesia) to pursue weaving crafts are Mbah Senu and Nyi Senu, who can then continue to develop from one generation to the next. In the days of the Mataram Islamic kingdom woven fabric into fabric with high value. This is because in those days weaving cloth was only used for special and special occasions, namely to meet the respected Grand Ulama, Mbah Datuk Gunardi Singorojo, who at that time was spreading Islam. Initially, weaving Troso has 2 (two) superior motifs which had a golden age, namely: lompong motif and cemara motif (Soekesi, 2013). Another motif was born, namely the striated motif with plain lines. The golden age motifs lompong, cemara and lurik could not last long because of difficulties in raw materials, because at that time the political conditions were shaken by the outbreak of the September 30th movement 1965 / G30S. PKI. Starting from the collapse of the golden age, then the design and pattern of weaving troso are more dynamic. Craftsmen no longer make weaves based on local cultural values, but rather focus on orders by prioritizing aspects of turnover and aspects of expanding marketing. Based on these facts it can be concluded that the design and style of weaving troso in its development prioritizes aspects of trade rather than culture. (Astin Soekanto: 2018). The prioritization of trade aspects can be proven that currently troso weaving also produces a number of orders for woven motifs with patterns and designs of ethnic culture of Bali, NTT, NTB, Kalimantan, Flores, Sumba, Lombok, even Sikka Maumere ethnic culture patterns (Word Press. Com .: 2018). Troso weaving which still exists today and continues to grow, both in terms of style and design, or the reach of expanding market share and improving the quality of production (Desrochers, 2004). This development is purely the initiative of the Troso community in Jepara Regency which has a spirit of entrepreneurship. The spirit of community entrepreneurship in Jepara Regency is not only in weaving, but also in rattan crafts and carving-carving. The importance of weaving copyright registration. Copyright is one of the Intellectual Property Rights, which is regulated by the Law of the Republic of Indonesia Number: 28 of 2014 concerning copyright. Copyright is the exclusive right of an author who arises automatically based on declarative principles, after a work has been realized in tangible form without reducing restrictions in accordance with the provisions of the legislation. Copyright is one part of intellectual property that has the broadest scope of protected objects, because it includes: science, art and literature and computer programs (general explanation of law number 28 of 2014). From this explanation it can be concluded that: weaving copyrighted works are included works in the field of art that are protected by the copyright act. The development of the creative economy carried out by the craftsmen is one of the considerations of the government to reform the law on copyright, in order to be able to compete in the global economy and international marketing. The new copyright law, better meets the elements of protection and development of the creative economy, as a form of protection and facilitation of government policy, in order to encourage the strong competitiveness of creative economic actors in global product marketing. The creative economy sector driven by the craftsmen has proven to exist even though the world has been hit by an economic and financial crisis. On the other hand the government also expects that there is a contribution of state revenue in the copyright registration sector so that the country's economy is more optimal (General Explanation of Law No. 28/2014). Copyright protection reached during the life of the creator plus 70 (seventy) years after the author's death. Economic rights of the creators and / or owners of related rights, including limiting the transfer of economic rights in the form of sold flat. The manager of the trading place is responsible for the selling place and/or violation of copyright and/or related rights at the shopping center that he manages. The aforementioned provision shows that the product that has been registered with copyright has a comprehensive legal protection, both from the beginning of the production process to marketing. Craftsmen as business actors need to understand the importance of registering copyright for their work. Copyright classified as an intangible movable object can be the object of fiduciary security. This privilege is both an appreciation and a price boost for the public to have an understanding of the importance of registering copyright and then registering copyright for each of his creations. Creator, copyright holder and associated right owner become a member of the collective management institute in order to collect fees or royalties, which are made in official service and used commercially. Civil disputes in copyright will effectively be carried out through out-of-court mediation processes or mediation in litigation, arbitration, consultation, negotiation, conciliation, and peace proceedings by the parties to the dispute directly. Criminal disputes in the copyright, applied a complaint offense rather than general offense thus made possible and provide an opportunity for the parties to the dispute to resolve with penal mediation or restorative justice. Based on all the explanations related to copyright registration above, from now on, the troso weaving craftsmen in Jepara, are expected to immediately have the awareness to register their creations in order to obtain legal protection and get economic effects in the form of increased sales turnover, rising sales prices and can even receive royalties from the management institute collective. Concept of competitiveness is one of the criteria to determine the success and achievement of a better goal by a country in increasing income and economic growth. Competitiveness is identified with productivity problems, namely by looking at the level of output produced for each input used. The increase in productivity is caused by an increase in the amount of physical input of capital and labor, an increase in the quality of the inputs used and an increase in technology (Abdullah, 2002). The main challenge of empowering regional autonomy understands the potential of regional competitiveness. With an accurate and complete understanding of the competitiveness potential of the region, a local government will be able to easily formulate a truly good policy and in turn will create a conducive climate for the business community in the region concerned (Abdullah, 2002). States that the concept of competitiveness that can be applied at the national level is be applied at the national level is "productivity" which is defined as the value of output produced by a workforce. The World Bank stated relatively the same thing in which "competitiveness refers to the magnitude and rate of change in the value added each unit input achieved by the company". However, both the World Bank, Porter, and other literature on national competitiveness see that competitiveness does not narrowly cover only the level of efficiency of a company (Susilo, 1998). Competitiveness covers a broader aspect, not only struggling at the micro level of the company, but also includes aspects outside the company such as a business climate that is clearly beyond the company's control. World Economic Forum (WEF), an issuing institution “Global Competitiveness Report ” define national competitiveness as "the ability of the national economy to achieve high and sustainable economic growth”. The focus is on the right policies, the appropriate institutions, and other economic characteristics that support the realization of high and sustainable economic growth (Abdullah, 2002). At the regional level, the concept of economic competitiveness can be defined by the UK Department of Commerce and Industry (UK-DTI) which issues “Regional Competitiveness Indicators”, and Centre for Urban and Regional Studies (CURDS), Inggris, with publication “The Competitiveness Project: 1998 Regional Benchmarking Report”. Regional competitiveness according to the definition made by UK-DTI is the ability of a region to generate high income and employment opportunities while remaining open to domestic and international competition. While the understanding of the concept of regional competitiveness according to CURDS is as the ability of the business sector or company in an area to generate high income and a more equitable level of wealth for its population (Ritonga, 2015).

Discussion

How to improve the competitiveness of weaving craftsmen by registering copyright for their work. The results of research that has been doing, that one of the efforts to improve the competitiveness of weaving craft is to register the copyright to their work. This Copyright registration apparently can be do individually, either through conventional / manual registration through the Regional Office of the Ministry of Law and Human Rights, which deals with Intellectual Property Rights or through the online system. This difficulty is cause by the limited ability of human resources of the artisans. On average only have low and middle education have limitations in applying and using the copyright registration application system online. Apart from the limited human resources of the artisans, the registration of copyright also experienced problems in the financing sector. This can understood because the artisans are in the position of small and medium enterprises and even micro businesses. Registration of batik (2017), embroidery and weaving copyrights, for a work of one design, costs approximately Rp. 600,000.00 (six hundred thousand rupiah) (Budi Santoso, 2009). Such a large fee for craftsmen in the category of small and medium-sized businesses and even micro-businesses is felt to be very heavy. Two obstacles in registering copyright, solutions must be sought and provided facilitation and support, both support that is human resource development and support for facilitating copyright registration (Saidin, 2004). Support for human resource development is carried out by forming a discussion group forum. This discussion group forum is one of the ways to improve the human resources of the weaving craftsmen. The discussion group forum activities, involving all weaving craftsmen, numbered approximately 60 craftsmen. The implementation of the discussion group forum which aims to improve the human resource capacity of the weaving craftsmen, is not only done once, but is carried out four times, with material deepening and material expansion of the three themes that were presented at the first discussion group implementation. The repetition of the implementation of the discussion group forum four times, was intended as an effort to provide a short education to improve the human resource capabilities of the batik, embroidery and weaving craftsman. The final goal expected is that after completing four forum discussion groups, the weaving craftsman already has practical knowledge and real abilities about the intricacies of copyright. Practical knowledge and real ability about the ins and outs of this copyright, including: what is copyright, protection of copyright, types of copyright, Indonesia as a member of various international agreements in the field of copyright, international competition in the field of copyright, holders copyright and copyright owners. copyright notices, authorities and copyright consultants, licenses in copyright, copyright royalties, collective management institutions, copyright piracy and commercial use of copyright and the application of damages to copyright infringers. Understanding the importance of registration of copyright weaving already exists in the craftsman as well as the desire to register the copyright of all his work is also high, but it turns out that weaving craftsmen have new obstacles and problems that are hampered by the limited financial capacity to pay the cost of registration of copyrighted woven. The registration fee for a work of woven is approximately Rp. 600,000.00 (six hundred thousand rupiah). To overcome the problem of the limited financial capacity of the weaving craftsman, the researchers and the team provided assistance in the form of free funding for the registration of copyrights in the form of works in the field of weaving. In order to facilitate facilitation in the form of free funding for registration of copyright in the field of weaving, it is realized evenly so that it is fair, then for every weaving craftsman; get a registration facility for one work both of weaving, embroidery and weaving. Funds to facilitate registration of free copyrights were obtained researchers from the Indonesian Ministry of Research, Higher Education Technology. The free registration of copyright is actually intended by the researcher only as a trigger and impetus for the weaving craftsman to subsequently be willing and able to register at their own expense as the copyright protected by the copyright act. This is intended in the event of piracy of copyrighted works of batik, embroidery and weaving craftsman, then they obtain legal protection and can obtain compensation. The results of this research turned out to be within a period of one year, namely from April 2018 to May 2019, after the facilitation of free registration of Copyright of Weaving, Embroidery and Weaving Craftsmen, it was proven that the craftsmen understood and were willing to independently register their works with own cost. The following are data from the number of weaving craftsman, as well as the number of copyrights that have been registered.

From the data above, it can be observed and analyzed that the total number of weaving craftsmen who were targeted by this study were 49. From the data Table 1 above it appears that there are still 1,547 copyrighted works, weaving that has not been registered for copyright. The numbers are quite large and this has become a concern for piracy of craftsmen's weaving works. As many as 1,547 works of weaving craftsmen that have not been listed above, because the figure is quite large, should be a concern of the Government of Jepara Regency to facilitate registration of copyright weaving for free, through a budgeting policy on the regional revenue and expenditure budget (Sunaryanto et al., 2004). If this is realized, then it is a clear proof of the support and attention of the regional government to the weaving craftsmen. Efforts to increase sales turnover and increase selling prices, for weaving craftsmen products, which already have a copyright. The effort that the researcher made to help increase sales turnover and increase the selling price of the products of weaving craftsmen, who already have copyrights, through several stages (Purwanto, 2011). The first stage, by conducting socialization and counseling as well as education to consumers about the importance of buying copyrighted works that have been registered with copyright. The second stage, provide socialization and counseling as well as education to consumers to be aware of the importance of appreciating copyrighted works of batik, embroidery and weaving that already have a copyright. Socialization and counseling as well as education to craftsmen and consumers have been carried out by the research team, the final result that is expected to be achieved is that after socialization and counseling as well as education to woven craftsmen and consumers about weaving copyrights, there is a real act towards weaving copyright awards, so as to realize the achievement of price increases and turnover of weaving sales of the craftsmen. The following is data on the development of an increase in selling prices and an increase in sales turnover from the weaving craftsmen, in the period April 2018 - May 2019 before and after the socialization and counseling and education to craftsmen and consumers / customers loyal weaving works (Table 2).

Table 1: Registration Of Copyright Within A Period Of April 2018 - May 2019
Type of craftsman Number of craftsmen Number of copyrighted works Registered Not registered
Weaving 49 2.045 498 1.547
Total 49 2.045 498 1.547
Table 2: Increase In Selling Prices Over A Period Of April 2018 - May 2019
Type of craftsman Selling price / piece before registered copyright Selling price / piece after
registered copyright
Amount of increase Percentage of increase
Weaving Rp.250.000 Rp.300.000 Rp.50.000 20%

From the data above, it can be observed and analyzed that the selling price of weaving prior to registering pieces of copyrights is Rp. 250,000 to Rp. 300,000 so there is an increase of Rp. 50,000 or an increase of 20%. A temporary conclusion that with the registration of copyright, there is a significant increase in selling prices. This fact provides the assumption that weaving consumers are able to appreciate the works of weaving by still willing to buy the price of weaving at a higher price (Table 3).

Table 3: Increase In Sales Turnover Between April 2018 - May 2019
Type of craftsman Sales turnover / month before registered copyright / one craftsman Sales turnover / month after
registered copyright / one craftsman
Amount of increase per month Percentage of increase per month
Weaving 900 piece 945 piece 45 piece 5%

From the above data it can be observed and analyzed that the sales turnover of weaving per month for every craftsman before being registered with copyright is 900 pieces, but after being registered for copyright the turnover goes up to 945 pieces per month, so there is an increase of 45 pieces or an increase of 5%. While concluding with the registration of weaving copyrights, there was only an insignificant increase in sales turnover. This fact provides the assumption that consumers of weaving are less able to appreciate the works of weaving or are less interested in buying works of weaving, as evidenced by a slight increase in sales turnover. Efforts to penetrate global marketing for weaving craftsmanship products that already have copyrights are facilitated by the craftsmen taking part in exhibiting woven products internationally and by marketing woven products through online media. Direct product marketing exhibitions can increase sales turnover while expanding the market. The research team with a very limited amount of grants from DRPM was only able to facilitate the exhibition of weaving products, one craftsman for an international-level product exhibition (Hadi Setia, 2011). But so that the weaving craftsmen can be helped to market their products in the global market, the researchers and the Team facilitate by creating a website and marketing the products together. This joint product marketing is intended for all craftsmen who are members of the weaving cooperative. Besides that, the weaving craftsmen are facilitated by researchers and the team to create a network, facebook and instagram account, followed by exhibiting their products individually or in combination, through product upload on social media, facebook and Instagram (Iswi Hariyani, 2010). The result of an increase in sales turnover through online media both by using a website address, facebook account and instagram account, is indeed not directly and immediately increases sales turnover. Weaving craftsmen must be patient and remain diligent and consistent in order to continue exhibiting their products through the online system, so that consumers in the global market will know it. It takes enough time for a product to win the hearts of consumers. Consumers must be interested first and then have an interest in buying and then consumers must be made to believe and feel satisfied, eventually becoming loyal customers. Loyal customers will indirectly become one of the free marketers for weaving craftsmen (Soekesi et al., 2013). Marketing products online will guarantee the business continuity of the craftsmen, because there will be a great opportunity to attract consumers on an ongoing basis throughout the world. Another advantage gained from marketing products online is the cost of selling products cheaper because there is no need to provide a place of business/shop for marketing the product. Lower marketing costs will increase profit margins higher.

Conclusion

One of the efforts to increase the competitiveness of weaving is registering copyrights for their work. However, there are constraints on the limited human resources and financial capacity of the craftsmen, so the researchers and the team provide assistance and provide facilitation to register copyright for their work.

Efforts to increase sales turnover and increase the selling price of the products of weaving craftsmen, which already have copyrights, are carried out by means of socialization, counseling and education to consumers in order to understand the intricacies of copyright. After consumers understand about copyright, consumers are expected to be able to have a real attitude in the form of pride and real behavior to buy woven products that have been registered with copyright at a relatively high price and still want to buy in large quantities.

The effort to penetrate the global marketing of weaving craftsmen who already own a copyrights is to facilitate the craftsmen to take part in the exhibition of selling products directly in international forums. It also facilitates to exhibit and sell products through online. This online marketing is done through websites, facebook and instagram. This online marketing media can save marketing costs, thus the craftsmen will get at least two important benefits, namely the first can expand the sales market at the global / international level, the second can increase sales turnover, so that the profit margin becomes more.

Acknowledgement

We would like to thank Direktorat Riset dan Pengabdian Masyarakat (DRPM) from Kementerian Ristek Dikti for funding this research through the “Skim Penelitian Terapan Unggulan Perguruan Tinggi” (PTUPT).

References