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In the development of the economy, the State of Indonesia experienced a change in the structure of the economy from an agricultural basis to an industrial one, which resulted in many benefits from these changes. The industrial sector has a close relationship with the economy of a country because the progress of the industrial sector is an indicator of the success of a country's economy. Descriptive methods are used to analyze physical and social phenomena and the readiness of an area to become a cluster. The analysis reveals that cluster policies are implemented by national and regional cluster programs. It was also determined that an important element of the cluster policy is the identification of sources of finance and the people responsible for implementing the program. The instrument can be applied by cluster policy actors which are defined in a broad sense, namely business, associations, government actors. In the industrial world, there are five industrial forces in determining the competition of an industry. The method used to determine the strength of the industry based on external factors of the company.

Industry clusters, which consist of a group of companies related geographically and sectorally, have become the focus of attention in regional economic and business strategy studies. This study uses an industrial structure analysis approach to understand the strength of competition within an industry cluster. Some of the factors analyzed include the level of industry concentration, new entries, bargaining power of buyers and suppliers, as well as product or service substitution. The data used in this study includes information about the companies that are members of the industrial cluster studied. The research method used includes secondary data collection, such as company financial reports, industry data, and related publications. In addition, interviews with industry stakeholders were also conducted to gain deeper insights into the structure of competitive forces and the factors that influence industrial clusters. The results of the analysis show that the structure of competitive forces in industry clusters can vary depending on the industrial sector studied. This research contributes to our understanding of how the structure of competitive forces and industry clusters can shape a competitive business environment, as well as providing useful insights for the development of effective business strategies within industry clusters.