<![CDATA[The problems of the indigenous economy represented by Muslims here in the 20th century cannot be separated from the policies of the Dutch colonial government and trade competition with the Chinese. This study aims to understand and analyze a dynamic cycle that occurred in the batik industry in the Muslim community in Yogyakarta from 1900-1939 and its impact on the economy of Muslim entrepreneurs and batik workers. This study uses historical methods with the object of research in Kauman, Kotagede and Karangkajen Villages. The results of this study include; (1) In the 20 th century, the socio-economic structure of the people of Yogyakarta was divided into three classes including the European class, the Chinese and Arab classes, and the indigenous people; (2) The dynamics of the batik industry in Yogyakarta from 1900-1939 experienced fluctuations (ups and downs) which resulted in economic instability of Muslim batik entrepreneurs, culminating in the malaise crisis; (3) The progress of the batik industry in Yogyakarta Muslim entrepreneurs, making them have a well-established economy and are able to recruit workers from the village as workers in batik.]]>
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