<![CDATA[Only 1.6% of small and medium industries (IKM) in Surabaya have exported, and only 36 of 80 coaching clinic participants were declared export-ready, even though the 2026 export value of USD 2.73 million exceeded the USD 1 million target. This contradiction indicates that the existence of a program does not necessarily reflect the policy capacity behind it. This study analyzes the policy capacity of the Surabaya City Government, through the Department of Industry and Manpower (Disperinaker), in encouraging IKM export readiness, using the policy capacity framework of Wu, Ramesh, and Howlett at the organizational level, covering analytical, operational, and political capacity. A descriptive qualitative approach was used. Informants were selected through purposive sampling and included department officials, technical staff in four work areas, and IKM from three export readiness categories. Data were collected through in-depth interviews, observation, and documentation, analyzed using the Miles and Huberman model, and validated through source and technique triangulation. The findings show uneven capacity. Analytical capacity is strong in using supervision data to determine coaching targets, but weak in structured data systems. Operational capacity functions in daily coaching, yet is constrained by limited personnel, manual recording, and funding. Political capacity is the strongest, built through cross-institutional partnerships, although outreach to IKM remains uneven and curation feedback is not always communicated. The study implies the need to formalize export readiness classification, standard operating procedures, and curation transparency.]]>
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