The aim of this study was to identify the internal factors that limit the growth and the success of Batik Cluster SMEs in South District of Central Java and to suggest recommendations for addressing such factors. This study uses qualitative research method. In-depth interviews have been performed, which included participant from six batik SMEs and from six officials representing six organizations in the six districts of south part of Central Java. Focus Group Discussion (FGD) was conducted in Banyumas and it explored the depth and nuances of opinions regarding factors affecting the development of batik SMEs clusters (i.e. education, raw material, marketing, partnerships, technology, capital, cooperative, and coordination among instititutions). The result from this study was to address some similar problems confronting batik cluster SMEs (e.g. inadequate education and training, materials, insufficient capital, lack of coordination among institution, etc.) Based on findings, it is recommended to strengthen the batik cluster SMEs by facilitating the development of PERBAIN as the batik cooperative that can serve the needs of funds and raw materials, improving the institution's assistance of batik craftsman skills, increasing coordination among government agencies, develop a South - Central Java batik association (i.e Yayasan Batik Indonesia) to promote batik in both national and global businesses.