Changes in government policies can significantly affect the operational sustainability of Micro, Small, and Medium Enterprise (MSME) clusters. This study aims to analyze operational sustainability strategies for MSME clusters in Kebumen Regency during the transition from a subsidized facility model, represented by the PLUT-KUMKM Gallery, to a commercial rental model at Kastil Waterpark Gading. A mixed-methods approach with a sequential explanatory design was employed through a case study. Primary data were collected through in-depth interviews, focus group discussions (FGDs), direct observations, and document analysis. Quantitative analysis using the Analytic Hierarchy Process (AHP) was conducted to identify priority sustainability strategies and was complemented by a Cost-Benefit Analysis (CBA). The results indicate that the annual rental cost increased substantially from IDR 2,145,000 to IDR 17,500,000, representing a 716% increase. However, the new location provides greater market exposure and access to tourists. The AHP results show that the Economic criterion received the highest priority weight (0.35), followed by Operational (0.25) and Marketing and Exposure (0.20) criteria. The Consistency Ratio (CR) of 0.068 indicates that the pairwise comparisons are consistent and the results are considered reliable. The study concludes that although changes in government policy increase the operational cost burden, relocation to a tourism-oriented area can serve as a viable strategy for sustaining MSME cluster operations, provided that it is supported by marketing innovation and appropriate facility management. These findings provide practical implications for developing adaptive MSME facility management models that can respond effectively to changes in government policies
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