<![CDATA[This policy paper examines the quality of economic growth in Sungai Penuh City, which remains insufficiently inclusive despite being primarily driven by the agricultural and trade sectors as the main contributors to regional GDP. The key issues include low value-added in the agricultural sector, weak value chain linkages among agriculture, MSMEs, and trade, as well as limited economic infrastructure and cross-sectoral coordination. These conditions result in uneven distribution of economic benefits, as reflected in the relatively slow decline of poverty and income inequality. This paper employs a descriptive qualitative approach using USG (Urgency, Seriousness, Growth) analysis to determine priority issues, combined with policy analysis based on William N. Dunn’s evaluative criteria, including effectiveness, efficiency, adequacy, equity, responsiveness, and appropriateness. The findings indicate that strengthening the linkage between agriculture, MSMEs, and trade through the development of a local economic value chain is the most optimal policy alternative. This approach is considered effective in increasing local value-added, strengthening intersectoral integration, and expanding the distribution of economic benefits across society. Policy implementation is directed toward strengthening partnerships among economic actors, developing commodity-based economic clusters, improving human resource capacity, and enhancing integrated infrastructure and governance systems. Therefore, the development of local economic value chains serves as a key strategy to promote more inclusive, sustainable, and competitive economic growth in Sungai Penuh City. Keywords: Inclusive economic growth; local value chain; agriculture; MSMEs; trade]]>
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