This study aims to analyze institutional dynamics, spatial regulatory negotiations, and economic leakage mitigation strategies in the governance of conservation area-based tourism villages. Employing a qualitative approach with a comparative case study design, data were collected through in-depth interviews with key stakeholders (management of Forest Farmer Groups/Pokdarwis, village governments, and regional enterprise/BUMD managers), participatory observation, and documentary research. Data were analyzed using a descriptive thematic approach. The results reveal three main findings: (1) the successful absorption of external grants was driven by proactive agency through administrative compliance (payment of Non-Tax State Revenue/PNBP) and strategic storytelling in national forums; (2) the legal constraints of 100% Protected Forest status and disaster vulnerability were navigated through commodity value-adding innovations, specifically the Geographical Indication (GI) registration of Matabulu Coffee and agricultural edutourism; and (3) the phenomenon of enclave tourism and economic leakage in the Leja Nature Recreation Park (TWA Leja) resulting from top-down designation can be mitigated through an Integrated Tourism Corridor model that connects cross-village potentials. This study offers a theoretical contribution to the Community-Based Tourism literature by deconstructing assumptions regarding the passive role of local communities, while providing policy implications that emphasize the importance of Quadruple Helix governance transformation and community-based capacity incubation. Future research is recommended to quantitatively measure the impact of economic leakage using Input-Output (I-O) analysis.
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