Macro level data shows that Indonesia as well as Pekalongan City experienced an economic downturn due to the global financial crisis (GFC). Apart from this, however, there are also other local shocks which occurred in the city such as the closing of a factory due to internal mismanagement, batik’s competition shock, and the closing of the local fish trading place. These crises somehow affected the economic sector which later affected households that depend on them as sources of income.