¹Faculty of Economics and Business, Universitas Jenderal Soedirman, Indonesia

Email: arifinie@gmail.com

The aim of this research is to assess impacts of production activities which have been carried out by hair craft industry in Purbalingga Regency, Central Java. These impacts include both positive and negative sides from a socio-economic perspective. The methods using in this research are SWOT analysis and Dollar-based Ecosystem Valuation Methods. It is undeniable that many benefits are felt by the surrounding community, such as declining in unemployment and increasing income, then improving the standard of living, of the local society. However these industry activities have already caused negative social and economic impacts, such as increasing the water pollution that endangers to ecosystem, degradation of social interaction in community life, and lack of motivation and enthusiasm of children to go to school.