This study adds other studies about the impact of Global Financial Crisis (GFC) on macro and microeconomic level in Indonesia. Pekalongan City was chosen because the city is part of the Community Based Monitoring System (CBMS) area and the availability of data in household level. Analysis data in macro level was intended to find the occurrence of GFC and how it is transmitted to the city. Qualitative data collection through FGDs and indepth interviews enrich the macroeconomic analysis. By combining data about CBMS 2009 census and impact of GFC survey in 5 villages, the study aim to identify which household group is the most affected. PCA method is used to predict which household belong to quintile of household welfare in each village. The fall of commodity price, particularly cotton, and Rupiah depreciation is a shock of GFC that significantly appears in macro level and transmitted to city’s batik home industry which later affects households. There are other local shocks that contribute to the GFC which result in compound crises felt by households. The affected households are those who had household member that switching job, even to the worse job, and experienced declining of income during June 2008-June 2009. Based on quintiles of household welfare, the majority of affected household come from the poorest households group (first quintile). Poorest households, particularly the affected households, reduced their food consumption, used health insurance for poor, and had children (10-18) that started working and drop out of school during the period of crises. Provision of well targeted social protection programs such as health insurance for the poor and Unconditional Cash Transfer (BLT2009) help the poor to cope with the compound crises. In Pekalongan City, the poor households benefit from the programs when they lost their financial ability during the crises. In the time of crises, government should also provide incentives for industries which are vulnerable to external shock and many households rely on it as source of income. If crises exist in the future, a good database of targeted households and vulnerable industries will help government to create an early response system and give prompt action. Other than database provided by the Government of Indonesia, it could also be achieved through local government initiative, such as household data from CBMS project in Pekalongan City.