Abstract 
This study explores the potential of coastal folklore as a driver of local economic empowerment within the creative economy framework. It highlights the role of coastal folklore in supporting the Ministry of Tourism and Creative Economy of Indonesia’s initiatives to promote cultural heritage while ensuring economic sustainability. While current conservation efforts focus primarily on preservation, they often neglect the need for adaptation and commercialization, putting coastal folklore at risk of fading away. Traditional methods of conservation, which tend to be static and limited to documentation, fail to resonate with the dynamic preferences of digital-native generations X, Y, and Z. This research aims to address these challenges by developing innovative strategies for incorporating coastal folklore into the creative industry. The goal is to transform coastal folklore into a tangible economic asset that not only fosters local development but also ensures the preservation of cultural heritage. By advocating for a shift from mere conservation to strategic commodification, the study envisions a model that preserves the authenticity and relevance of coastal folklore while adapting it to contemporary societal needs. This approach seeks to balance cultural preservation with economic opportunities, providing a sustainable pathway for integrating local traditions into the global creative economy, while enhancing community pride and local identity in the process.
Keywords: Coastal Folklore, Commodification, Creative Industry, Local Economy