Bali has various types of traditional textiles whose knowledge and local wisdom refer to the skills and philosophy that develop in society due to the interaction between culture, religion, social environment, and nature. However, several threats and constraints in the sustainability of handwoven textiles. The article aims to present an analysis of the orange economy activity in the traditional weaving industry based on indigenous knowledge that contributes to the sustainability of traditional textiles in Bali. A case study approach was implemented using participant observation, photography, and semi-structured interviews. The data is also collected through focus group discussion, the results of which are input into MICMAC analysis to determine the indicators of the orange economy. Analyses revealed the cultural value still attached to the handwoven textiles even though the creativity and innovation of the Balinese handwoven cultural industry increased their passion to preserve their tradition, which further reinforced their sense of identity. Further exploration from cultural value revealed that the local wisdom has a significant influence on the sustainability of Balinese handwoven textiles. This study also revealed historical, authenticity, esthetic, spiritual, and social capital as sustainability key drivers of the orange economy of BHT through the traditional weaving cultural industry.
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