An Analysis of the Implementation of the Leather Handicraft Industrial Cluster Development Policy in Magetan Regency

The development of leather handicraft industrial clusters is one of the local government's strategic efforts to enhance the competitiveness of small and medium-sized enterprises (SMEs) while promoting regional economic growth. However, the implementation of the policy for developing leather handicraft industrial clusters in Magetan Regency continues to face several challenges, including limited resources, inadequate coordination among stakeholders, and constraints related to product marketing and innovation. This study aims to analyze the implementation of the policy for developing leather handicraft industrial clusters in Magetan Regency and to identify the factors that support and hinder its implementation. The study employed a qualitative approach using a descriptive research method. Data were collected through interviews, observations, and documentation involving government officials, leather handicraft business owners, and other relevant stakeholders. Data analysis was conducted through the stages of data reduction, data presentation, and conclusion drawing. The findings indicate that the policy has been implemented through various programs, including business assistance, training, promotional facilitation, and product quality improvement. Nevertheless, the implementation has not yet been fully optimized due to budget limitations, the underutilization of digital technology, limited product innovation, and insufficient collaboration among the government, business actors, and supporting institutions. Supporting factors include the commitment of the local government, the potential of local resources, and the existence of an established leather handicraft industrial cluster. Meanwhile, the main inhibiting factors consist of limited human resources, restricted market access, and weak cross-sector collaboration. Therefore, strengthening stakeholder coordination, enhancing the capacity of business actors, and optimizing the use of digital technology are essential to achieving more effective and sustainable policy implementation.