The development of core competencies is expected to increase the competitiveness of national industries, because it the performance becomes measurable and easy to evaluate its development program. Global economic competition has been increasingly right now. The low competitiveness of the industry at international market is still a challenge to the national industry. Industrial development can be done by utilizing the natural resources, and focus on the region competence. This research was conducted to help know the core competence of industry by take case study at Pekalongan City. The first phase is determining regional competence on some existing industrial alternatives. The alternative is obtained based on secondary data collection and using method of Analytic Hierarchy Process (AHP). The results will be in the form of core competencies that can be developed, as a competitiveness in Pekalongan City. Phase two, plans the development strategy using Interpretive Structural Modeling (ISM) method. In designing the core competency,  it will done by discussing with experts to get additional analysis about the strategy to be done.