The purpose of this research is to describe the regional policy implementation strategy of the Special Region of Yogyakarta (DIY) regarding the management and implementation of cultural-based education in SMA Muhammadiyah 5 Yogyakarta and to find out its supporting and inhibiting factors. This research was qualitative with subjects involving the School Principal, the Vice Principal of Student Affairs, the teachers, and the students. The data collection techniques used were through interview, observation and documentation. The data analysis techniques used were data reduction, data display and data verification. The validity technique used was triangulation of sources and method. The research result: 1) the regional policy implementation strategy of the Special Region of Yogyakarta (DIY) regarding the management and implementation of cultural-based education in SMA Muhammadiyah 5 Yogyakarta is conducted by: performing study interpretation towards culture, choosing karawitan cultural art as one of the lesson subjects, performing study interpretation through culture, choosing karawitan, puppetry, traditional dance, and bergodho as the school extracurricular program, and performing study interpretation with culture. The school has basically integrated character education which was initially in the form of a habitual manner into the form of educational process. 2) The supporting factors are: financial support from the Central Government, adequate facilities and infrastructures, competent teachers, fee as moral support, positive point of view from the society, the ability to enhance the students’ character building. 3) The internal inhibiting factors are: constraints from the students, teachers and school, the external inhibiting factors are: surrounding society, parents, and Central Government