<![CDATA[This study aims to examine the co-creation process in digitalization policies for the creative economy between the Kediri City Government and MSME actors in order to enhance business competitiveness in the digital era. The research focuses on MSMEs in creative economy subsectors, such as culinary, fashion, and local processed products. The method used is a descriptive qualitative approach, with data collection techniques including interviews, observation, and documentation. The results show that the development of MSME digitalization in Kediri City is relatively good, especially in the culinary sector, as indicated by the utilization of social media, marketplaces, and support from various government programs such as training, workshops, seminars, mentoring, and the SiBadu application. However, several challenges remain, including low levels of digital literacy, limited access to capital, unequal internet access, and suboptimal participation of MSME actors in the policy formulation process. The co-creation approach is considered important as it encourages the active involvement of MSME actors in program design, resulting in policies that are more targeted, adaptive, and aligned with local needs. Based on the analysis using the MSN Approach, the success of digitalization is influenced by the mental readiness of business actors, a well-organized policy system, and networks of collaboration between the government and various stakeholders. In addition, synergy among the government, private sector, business communities, and society further strengthens the sustainability of the digital ecosystem. Thus, sustainable collaboration between the government and MSME actors is a key factor in strengthening the creative economy sector while enhancing the competitiveness of Kediri City. ]]>
