<p class="Abstract"><em>Pekalongan City is known as the batik city. Thus it has the city branding as "Pekalongan World's City of Batik." This branding is a result of people’s daily activity related to batik. Pekalongan has 860 batik industries in 2013 and have the specialization in the production activities and subcontracting partnerships. Most of the batik industries do not do the production process entirely by themselves, but by joining to the other industries with a particular specialization. This study aims to determine the specialization of production activities and subcontracting partnership in Pekalongan batik cluster. The results of this study show that there is a majority of ‘batik cap’ industries that is equal to 82% of the total industries in Pekalongan. The specializations consist of making the batik, convection, and making of the canting. These specializations are geographically grouped into a center due to the endowment factors such as labors, land, and infrastructures. Specialization of production activities also leads to partnership subcontracting in the batik cluster, which is known by a factor of specialty subcontracting. The subcontracting partnership gives negative and positive impacts, such as the reliance between the subcontractor and the principal, efficiency of production factors, and cost efficiency.</em><em></em></p>