This study analyzes the semiotics of intrinsic elements such as theme, characters, plot, and setting, as well as extrinsic contexts like Indonesian oral traditions, in the folktale Kancil and Buaya as children's literature. The research problem lies in the limited semiotic analysis of local folktales for character education. The objective is to describe representations, identify signs using Saussure and Peirce theories, and interpret symbolic meanings. Employing qualitative case study methodology with content analysis on folktale texts, findings reveal Kancil as a symbol of human cleverness (symbol per Peirce), the river as an index of life's obstacles, and the story as an effective moral education tool. Intrinsic elements form a simple narrative structure suitable for children, while extrinsic contexts reflect cultural values prioritizing intellect over physical strength.
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