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The existence of Small and Medium Industries (SMEs) has received attention from the government, but it is felt that it has not been able to contribute maximally to productive economic activities. Palembang City is one of the many regions in Indonesia that has great potential in the development of SMEs. This research is intended as an effort to strengthen SMEs with an industrial cluster approach, namely by mapping cluster development and formulating SMEs development strategies that have competitive advantages. The study population consisted of SMEs Nusantara practitioners in Palembang, which consisted of 260 unit. The sample of this study will focus on the types of Songket industry, the sampling method using snowball sampling techniques. The analytical method used is Cluster Map to determine business people in the cluster, Diamond Cluster to identify strategic factors and SWOT Analysis. The results of the study show the results of mapping the development strategy of SMEs Nusantara, namely to innovate designs, increase sales promotion, establish cooperation with the local government, and carry out marketing through online media.

Industrial Clusterization to Improve the Competitiveness of Small and Medium Industries in the City of Palembang