The aimed of this study are 1) To identify the profile ofSMEsin Purbalinggabatikwhich includes theamount, location, production capacity, product type, amount of labor, raw materials and production facilities.2) To identifythe corecompetenciesof SMEsinPubalinggabatikby Value Chainapproach.Data collection methodsusedin this studyis the triangulation method, consist of : observation,documentationandinterview. Qualitativedescriptiveanalysis used to analyzethe elements inthe frameworkofValueChain Management thatcan bedefinedas a core competencyof SMEsbatikin Purbalingga.The resultsshown 1) Profilesobtainedin Purbalinggas sô µall eô ¶terprises batikwhich has anumberofmore or lessas many as 400people spreadacross multiplecenters ofbatik, which isin Bobotsari, Bojongsari,Kalimanah, KarangmoncolandKemangkon District. Turnoverestimatedperyearbatikisaround Rp 4,595,200,000toRp9.28 billion. Products resulted includebatikcloth, sinjang, and tablecloths. The majority of batik craftsmen stillrun the business in atraditionalway. 2)Basedon the value chainanalysis, corecompetenciesthat canbe the basisforcompetitive advantagein purbalingga batik SMEsare The Speed and the craftsmens apilityin theprocess of ofmaking batike specially on stage nyanting skills that is noteasyto be imitated byother batik craftsmen.Keywords : SMEsbatik, Core Competence, Value Chain